Rogers Communications delivered a massive boost to its sports and media segment in the second quarter of 2026, driven by the consolidation of Maple Leaf Sports & Entertainment (MLSE), a revenue boom from the Toronto Blue Jays, and a bump in subscribers.
The telecom giant reported a 53% surge in total media revenue to $1.2 billion, up from $0.8 billion in the same period last year. Approximately $300 million of that increase came from Rogers’ previous acquisition of Bell’s stake in MLSE, but the segment also boasted 13% standalone organic growth (roughly $100 million). Media profitability skyrocketed, with adjusted EBITDA rising nearly eight-and-a-half times to $69 million, up from just $8 million a year ago.
MLSE direct ownership strategy
The earnings call comes on the heels of Rogers’ blockbuster agreement earlier this month to acquire the remaining 25% ownership stake in MLSE from Kilmer Sports for $4.35 billion. The deal will give Rogers 100% ownership of the Toronto Maple Leafs, Toronto Raptors, Toronto FC, and the Toronto Argonauts, among other holdings.
Rogers President and CEO Tony Staffieri emphasized that ownership of these premier sports franchises is a core differentiator for the company’s broader telecom operation.
“The strategic value of sports is not just about winning,” Staffieri told investors. “The value is even greater when combined with our core connectivity business. This gives us a unique value proposition in a competitive local marketplace. We will create more opportunities for fans to connect with the teams and artists they love, and we will invest to deliver unique rewards for our customers.”
Once the acquisition closes, expected in the fourth quarter subject to league approvals, Rogers plans to package its media division with MLSE and monetize a minority stake. Proceeds would be heavily directed toward paying down debt and strengthening the company’s balance sheet. Due to the renegotiated transaction price for the final MLSE stake, Rogers recorded a $1 billion non-cash loss in the quarter to reflect the shifting fair value of the MLSE put liability.
“The 13% standalone organic growth, roughly $100 million, was largely driven by higher Toronto Blue Jays related revenue, with over 95% near-capacity attendance for our home games at Rogers Centre, and by higher subscriber revenue from the 2025 launch of the Warner Bros. Discovery suite of channels,” Chief Financial Officer Glenn Brandt told Wednesday’s earnings call.
CapEx cuts free up $1B in cash flow
Beyond media, Rogers’ reported a rise in total service revenue of 8% to $5.1 billion, while consolidated adjusted EBITDA grew 3% to $2.4 billion.
Rogers slashed its capital expenditures by 16% to $0.7 billion, fulfilling a capital efficiency program announced in April, which included offering voluntary buyouts to roughly 10,000 employees, laying off IT support staff, and eliminating roughly 230 positions across Rogers Sports & Media earlier this month. That pulled the company’s capital intensity ratio down to 12% – the lowest Rogers has achieved since the first quarter of 2008.
The drop in spending helped yield $1 billion in free cash flow for the quarter, a six per cent increase year-over-year, with management reaffirming it expects that to accelerate through the second half of the year.
“On the Opex side, we continue to focus on driving improved efficiencies, some coming from synergy opportunities with the combination of RSM [Rogers Sports & Media], MLSE… We’re looking at vendors, we’re looking at either insourcing or outsourcing costs, and changes to address the underlying operating costs of delivering our services,” said Brandt.
