Canada's Rogers Communications Q2 revenue beats on media growth, cable subscriber gains

Rogers said media revenue rose 53%, mainly due to the consolidation of Maple Leaf Sports & Entertainment and higher Toronto Blue Jays revenue.

Cable service revenue grew 1% due to retail Internet subscriber growth and base management activities.

Wireless service revenue was stable as customer additions were offset by lower mobile phone ARPU from competitive intensity.

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell".

The average consensus recommendation for the wireless telecommunications services peer group is "buy".

Wall Street's median 12-month price target for Rogers Communications Inc is C$60.00, about 23.4% above its July 21 closing price of C$48.61.

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago.

Rogers reaffirmed its 2026 outlook for service revenue growth of 3% to 5% and adjusted EBITDA growth of 1% to 3%.

The company expects its purchase of the remaining minority stake in Maple Leaf Sports & Entertainment to close in the fourth quarter. Rogers also plans to pursue the sale of a minority interest in consolidated sports assets over the next year.

Canada telecom and media firm Rogers Communications said second-quarter revenue rose 8%, beating analyst expectations. Adjusted EPS for the quarter also beat consensus.