Rogers Communications (TSX:RCI.B) spent the previous 12 months proving it could ship regular outcomes even when the financial backdrop is unsure. Whereas its share value has been risky, dropping from final 12 months’s highs earlier than rebounding this summer time, the corporate has leaned into its position as a reliable money generator, producing constant income development throughout wi-fi, cable, and media. For buyers, that stability, mixed with a 4% dividend yield, makes Rogers inventory an interesting earnings and resilience play.
Into earnings
Within the second quarter of 2025, Rogers inventory reported complete income of $5.22 billion, up 2% from the identical interval final 12 months. Service income additionally rose 2%, with wi-fi, cable, and media all posting development. Wi-fi service income climbed 1% because of subscriber positive factors, whereas cable additionally grew 1%, aided by a 26,000 enhance in retail web prospects.
Media stood out with a ten% soar in income, powered by robust NHL playoff audiences on Sportsnet and the addition of Warner Bros. Discovery channels. Adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) for the quarter rose 2% to $2.36 billion. This mirrored price efficiencies and secure margins throughout its operations.
Extra to return
Maybe essentially the most eye-catching transfer this 12 months has been Rogers inventory’s push deeper into sports activities possession. On July 1, the corporate closed its $4.7 billion acquisition of a 37.5% stake in Maple Leaf Sports activities & Leisure, making Rogers inventory the 75% controlling proprietor of the Toronto Maple Leafs, Toronto Raptors, Toronto FC, and Toronto Argonauts. Mixed with its present possession of the Toronto Blue Jays, Rogers now instructions a sports activities portfolio valued at over $15 billion. Whereas the fast monetary elevate from MLSE can be seasonal, the long-term potential for integrating these property into its media and content material ecosystem might unlock vital shareholder worth.
Rogers inventory additionally targeted on strengthening its stability sheet. The completion of a $6.7 billion fairness funding from Blackstone and different institutional buyers in a subsidiary community firm allowed Rogers to repay debt and enhance liquidity. The debt leverage ratio has dropped to three.6 instances from 4.5 on the finish of 2024. This marked a considerable step towards its long-term goal. The disciplined method to deleveraging comes whereas nonetheless returning capital to shareholders, with $269 million paid out in dividends within the newest quarter.
Wanting forward
Operationally, Rogers continues to take a position closely in community management. It launched 5G Superior know-how, the primary in Canada, and deployed an undersea fibre line to enhance web reliability for the Southern Gulf Islands in British Columbia. In cable, adjusted EBITDA rose 3% as price controls outweighed programming and tools bills, lifting margins to 58%.
Free money move was a standout, hitting $925 million within the quarter, up 39% 12 months over 12 months. That power helps help each the dividend and ongoing funding plans, with capital expenditures anticipated to complete about $3.8 billion this 12 months, largely directed towards networks. Administration’s up to date steerage now requires service income development of three% to five% in 2025, boosted by the MLSE acquisition.
Silly takeaway
Nonetheless, there are challenges to look at. The mixing of MLSE and the monetization of sports activities property will take time to completely materialize. Programming prices in media and aggressive pricing stress in wi-fi stay ongoing components. And whereas the corporate has made progress in reducing its debt load, leverage remains to be elevated in comparison with some friends. Even so, Rogers inventory’s potential to generate money in just about all market situations stays its defining function. For now, a $10,000 funding might usher in $410 yearly at writing.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| RCI.B | $48.59 | 205 | $2.00 | $410.00 | Quarterly | $9,960.95 |
The mixture of recurring subscription income, environment friendly operations, and high-value media property supplies a secure basis for development. For buyers searching for a inventory that may ship regular earnings immediately and construct long-term worth tomorrow, Rogers inventory continues to suit the invoice as a dependable money cow in a market the place predictability is uncommon.
