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Investing.com - Rogers Communications (TSX:RCIa) Inc. (NYSE:RCI) on Wednesday reported second-quarter earnings that significantly exceeded analyst expectations, with adjusted earnings per share of C$1.14, beating the consensus estimate of C$0.81 by C$0.33.
The telecommunications giant also reported quarterly revenue of C$5.22 billion, well above analyst expectations of C$3.79 billion.
The company delivered growth across all its business segments, with total service revenue increasing 2% YoY.
Wireless service revenue rose 1%, Cable service revenue grew 1% with adjusted EBITDA up 3%, and Media revenue jumped 10%, driven by expanded media content and strong NHL playoff audiences on Sportsnet.
Rogers generated free cash flow of C$925 million, representing a 39% increase from the same period last year. Following the earnings release, Rogers shares rose 1.5%.
"In the second quarter, Rogers reported strong financial performance delivering growth in Wireless, Cable, and Media," said Tony Staffieri, President and CEO.
"Combined with our team’s strong execution, we took meaningful steps to unlock value for shareholders by accelerating the deleveraging of our balance sheet and making our transformational investment in our world-class sports assets."
The company added 61,000 total mobile phone net subscriber additions, including 35,000 postpaid customers, while postpaid churn improved to 1.00%, down 7 basis points. Rogers also reported 26,000 retail Internet net additions.
Rogers updated its 2025 outlook following its acquisition of a majority stake in Maple Leaf Sports & Entertainment (MLSE), which closed on July 1.
The company now expects total service revenue to grow 3% to 5% for the year, up from its previous guidance of 0% to 3%. Capital expenditures are projected to be approximately C$3.8 billion, at the lower end of its prior range.
The company estimates the value of its sports and media assets now exceeds C$15 billion and projects that its pro forma calendar 2025 Media revenue and adjusted EBITDA including MLSE would be approximately C$3.9 billion and C$250 million, respectively.
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