TORONTO — The chief executive of Rogers Communications Inc. says the company is keen to unlock underappreciated value from its growing collection of sports assets after extending its national hockey broadcast rights and signing a deal to expand its stake in Maple Leaf Sports & Entertainment.
Rogers believes its sports portfolio is now "unrivalled in Canada" and among the "best in the world," said president and CEO Tony Staffieri on Wednesday, but he acknowledged that value isn't reflected in its share price.
"Our priority is to change this," Staffieri said in his prepared remarks to analysts on Rogers' first-quarter earnings call.
"Sports assets continue to appreciate significantly in value and that's why investors remain very interested in holding a minority position in these appreciating assets."
For now, he said the company is focused on closing its $4.7-billion deal with BCE Inc., the owner of rival telecom company Bell Canada, to acquire its 37.5 per cent stake in the conglomerate that owns the NHL’s Toronto Maple Leafs, NBA’s Raptors, CFL’s Argonauts, MLS’ Toronto FC and AHL’s Marlies.
The deal "keeps iconic Canadian teams in Canadian hands," said the company's executive chair Edward Rogers on Wednesday during its annual general meeting, where he emphasized the telecom's Canadian roots and local investments amid trade tensions with the U.S.
Once that deal closes, which is expected midway through this year, Rogers would own a 75 per cent stake in MLSE.
Rogers chief financial officer Glenn Brandt said that combined with Rogers' existing ownership of the Toronto Blue Jays and the baseball club's home stadium, the company's total sports assets would be worth around $15 billion.
"We are more aware than the market is reflecting right now of the value of those assets on our balance sheet," said Brandt.
"Others talking to us also understand that value."
While Rogers intends to hold a controlling interest in MLSE, some analysts have speculated it could look to sell a minority stake to investors.
Brandt said Rogers is already in discussions with "various institutional investors" that have expressed "substantial" interest as the company awaits league and regulatory approvals of the MLSE deal.
"It's premature for me to start speculating on when that might result in a transaction," he said.
"We will explore those opportunities with a very open mind."
Earlier this month, Rogers also announced a 12-year, $11-billion agreement for the national rights to NHL games in Canada starting in the 2026-27 season. The deal will kick in following the conclusion of its current 12-year deal it signed for $5.2-billion.
"These national media rights, now locked in until 2038, are the most valuable media rights in Canada," said Staffieri.
"The first deal was profitable and successful for Rogers and Sportsnet, and we plan to build on this over the next 12 years."
Rogers' recent sports splurge did raise the eyebrows of at least one shareholder at its annual meeting, who pressed the company's leadership about the Toronto Blue Jays' decision this month to hand star player Vladimir Guerrero Jr. a 14-year, US$500 million contract extension.
"Did that come to the board for a decision, or who makes the decision to spend something like $700 million on a baseball player?" the shareholder said, using an approximate conversion to Canadian dollars.
Edward Rogers said Blue Jays management brought the proposed Guerrero contract to him and Staffieri before the full Rogers board granted approval.
"It's a very large bet," said Rogers.
"It's a lot of money, but in the context of where sports is today, and for the performance we're getting, we think it was a good investment."
Rogers' shares were trading for $35.07 around noon Wednesday, down 0.1 per cent, after the company reported its first-quarter profit rose compared with a year ago.
It said it earned $280 million or 50 cents per diluted share for the quarter ended March 31, up from a profit of $256 million or 46 cents per share in the same quarter last year. Revenue for the three-month period totalled $4.98 billion, up from $4.90 billion a year earlier.
The company said wireless service revenue was up two per cent from a year ago as its subscriber base grew, while wireless equipment revenue fell three per cent on lower device sales.
Media revenue rose 24 per cent, boosted by higher sports-related revenue, including at the Toronto Blue Jays, and higher subscriber and advertising revenue. Cable revenue fell one per cent.
The results came as Rogers reported 34,000 total mobile phone net subscriber additions, including 11,000 postpaid — down from 98,000 postpaid additions in the same quarter last year.
Rogers' monthly churn for net postpaid mobile subscribers — a measure of those who cancelled their service — was 1.01 per cent, down from 1.10 per cent during its previous first quarter.
The company recorded 23,000 prepaid net additions in the quarter, compared with a loss of 37,000 subscribers in the first quarter of 2024.
Meanwhile, Rogers' mobile phone average monthly revenue per user was $56.94, down from $58.06 in the first quarter of the prior year.
Retail internet net additions totalled to 23,000.
On an adjusted basis, Rogers said it earned 99 cents per diluted share, the same as the first quarter of 2024.
Staffieri said the results came against a backdrop of slower growth in the telecom sector, driven by lower immigration levels.
"The company continues to exercise strong cost control to offset top-line pressures," said Scotiabank analyst Maher Yaghi in a note.
"Overall results were in line with expectations and, given the significant drag in stock performance lately, we would not be surprised to see a relief rally in the stock; however, the outlook remains sluggish."
This report by The Canadian Press was first published April 23, 2025.
Companies in this story: (TSX:RCI.B)
Sammy Hudes, The Canadian Press
