Rogers misses quarterly wireless subscriber estimates; shares fall

Earlier this month, Rogers agreed to acquire the remaining 25% stake in MLSE for C$4.35 billion in cash, a deal that would give it full ownership of the sports and entertainment company. The transaction is expected to close in the fourth quarter.

The company posted a net loss of C$665 million, compared with net income of C$148 million a year earlier. The loss was primarily due to a C$1.03 billion non-cash charge related to the revaluation of its MLSE put liability.

Rogers reaffirmed its full-year 2026 forecast.

($1 = 1.4102 Canadian dollars)

Rogers Communications said on Wednesday it added fewer wireless subscribers than expected in the second quarter, even as revenue beat analysts' estimates, helped by strength in its media business.

U.S.-listed shares of Rogers were down 3% in premarket trading.

Canadian telecom operators are grappling with aggressive competition and pricing pressure in a slower-growth market. Rogers said wireless service revenue was flat, as customer additions were offset by lower revenue per user. It said the decline in postpaid gross and net additions was due to slowing population growth in the country.

Rogers added 22,000 postpaid bill-paying wireless phone subscribers in the quarter, below analysts' expectations of 26,726, according to Visible Alpha. Monthly mobile phone average revenue per user fell to C$54.25 from C$55.45 a year earlier.

The wireless service provider reported second-quarter revenue of C$5.62 billion, above analysts' average estimate of C$5.55 billion, according to data compiled by LSEG.