Rogers Communications Posts $5.8B Q3 Profit from MLSE Deal Gain
Rogers Communications Inc. reported a significant increase in profits for the third quarter, largely attributed to its recent acquisition of interest in Maple Leaf Sports & Entertainment (MLSE). The telecom giant’s overall profits surged to $5.75 billion due to a one-time non-cash gain from this deal. The company has now become the majority owner of MLSE, which includes renowned franchises like the Toronto Maple Leafs and Toronto Raptors.
Media Revenue Growth
The enthusiasm surrounding the Toronto Blue Jays has positively impacted Rogers’ media revenue, which experienced a year-over-year growth of 26% for the quarter ending September 30. This advancement accounted for the bulk of the company’s total revenue increase of 4%, reaching $5.35 billion.
Details of Financial Performance
- Total revenue: $5.35 billion (up from the previous year)
- Media revenue growth: 26% year-over-year
- Third-quarter profits: $5.75 billion
- Adjusted earnings: $740 million (down from $762 million)
- Earnings per share: $1.37 (down from $1.42)
Wireless and Cable Performance
Despite the strong performance in media, Rogers’ wireless segment, its largest revenue source, saw a slight dip. Wireless revenue decreased to $2.06 billion from $2.07 billion last year. Factors such as intense competition and reduced immigration levels contributed to this downturn.
Conversely, cable revenue showed a small improvement, climbing to $1.98 billion from $1.97 billion year-on-year. These mixed results highlight a complex financial landscape for Rogers as it navigates challenges in its core business segments.
Future Outlook
Looking ahead, Rogers anticipates continued revenue growth from its media division. The ongoing success of the Blue Jays in the MLB playoffs is expected to further bolster media revenues in the fourth quarter. Chief Financial Officer Glenn Brandt expressed optimism regarding the team’s strong season, emphasizing the heightened interest and attendance levels among fans.
As Rogers position itself as a major player in the sports entertainment sector, the impact of its strategic acquisitions and the performance of its franchises will remain critical to its financial future.
