After MLSE deal, Rogers looks to trim costs and boost revenue

Earlier this month, Rogers completed its $4.7-billion deal with rival BCE Inc. to buy its 37.5% stake in MLSE. The acquisition, which closed July 1 after receiving the necessary regulatory and league approvals, made Rogers the majority owner of the sports conglomerate that owns the NHL’s Maple Leafs, NBA’s Raptors, CFL’s Argonauts, MLS’ Toronto FC and AHL’s Marlies.

Rogers also owns MLB’s Toronto Blue Jays.

Rogers explores sports and media synergies to unlock shareholder value

“On sports and media, it’s clear that there is significant underlying value and we are squarely focused as we put the assets together … to continue to strengthen our balance sheet,” said Rogers president and CEO Tony Staffieri on a conference call Wednesday, as the company reported its latest earnings. “The second part of our task is to surface the value for shareholders. We continue to work through the various options and the good news is we have very good options in front of us.” 

Staffieri said it was premature to provide further insight about possible “synergies” within MLSE, but that Rogers would likely share details of its plans before the end of 2026. He said Rogers has “a very good track record”  in finding ways to operate more efficiently, pointing to its 2023 merger with Shaw Communications Inc.

“We went into this transaction with a view that we could execute on very strong synergies across our sports and media properties and certain things that need to happen before we can execute on those,” he said. “But the thinking, the planning is underway and at the right time … we can be more specific.”

Some industry watchers have speculated about the potential for Rogers to eventually fold the Blue Jays and related stadium assets into MLSE — an option floated by one analyst on the conference call who questioned if that’s where Rogers might stand to eliminate “redundant costs” within its sports portfolio. “I expect that as we roll in the Toronto Blue Jays’ Rogers Centre with Scotiabank Arena and the other venues within MLSE and the sports teams within MLSE, we will find revenue and cost synergies,” chief financial officer Glenn Brandt replied.

Rogers raises 2025 revenue forecast as MLSE deal boosts outlook

Meanwhile, the company updated its financial guidance on Wednesday to reflect the MLSE deal. Rogers now expects service revenue to increase three to 5% year-over-year in 2025, up from its previous forecast of zero to 3% growth, as a result of the anticipated contribution from MLSE.

Rogers reported its second-quarter profit declined compared with a year ago as a result of higher restructuring, acquisition and other costs. The company said it earned $148 million or 29 cents per diluted share attributable to shareholders for the quarter ended June 30. The result was down from a profit of $394 million or 73 cents per share in the same quarter last year.