Rogers Communications’ first-quarter monetary outcomes, introduced Wednesday morning, largely matched analysts’ income and earnings expectations, however the inventory surged 11% on steering of decrease capital spending and better free money movement.
Rogers additionally supplied an replace on its sports activities plans following its 2025 purchase of BCE’s 37.5% stake in Maple Leaf Sports & Entertainment, the father or mother of the NHL’s Maple Leafs, NBA’s Raptors and MLS’ Toronto FC, which gave Rogers possession of 75% of MLSE. Rogers additionally individually owns MLB’s Blue Jays.
“We expect to complete the purchase of the remaining 25% minority interest in MLSE in the second half of this year,” Rogers Communications CEO Tony Staffieri mentioned on the earnings name. “Following the close, we plan to combine our assets into one of the most significant sports ownership, media and entertainment entities globally.”
Staffieri mentioned the corporate would unlock vital worth and extra income with the sports activities property below one roof. Rogers can be planning to usher in minority traders for its sports activities property that Staffieri mentioned would have a worth better than CAD $25 billion ($18.25 billion primarily based on present trade charges). Rogers plans to make use of the funds to pay down debt.
The $18.25 billion valuation has grown as sports activities asset valuations proceed to blow up. During the decision, Rogers CFO Glenn Brandt highlighted the settlement for José E. Feliciano and his spouse Kwanza Jones to buy the San Diego Padres for $3.9 billion. Brandt mentioned the corporate expects to finish the recapitalization of its sports activities and media group in late 2026 or early 2027 because it pursues minority fairness traders.
“We’ve said for some time, we don’t need to own 100% of these assets,” Brandt mentioned. “We do absolutely like the prospect for future growth in the assets. A key part of this transaction is to surface the value in those assets that currently are not part of the RCI share price. That is only done through that transaction.”
The remaining 25% of MLSE is owned by Larry Tanenbaum by way of his Kilmer Sports Ventures. Rogers has an choice to purchase the stake this summer time.
“We’ve held significant [sports] assets with the original 37.5% in MLSE, the Jays, Sportsnet and other media assets, and we get zero credit for that today in our share valuation,” Staffieri told Sportico final 12 months. “The thesis is to consolidate all those assets together and surface that value for Rogers’ shareholders.”
Sportico’s present valuations have the Raptors at $4.66 billion, Maple Leafs at $4.25 billion, Blue Jays at $2.9 billion and Toronto FC at $730 million; the mixed whole is $12.5 billion. The separate Rogers sports activities entity would additionally seemingly embody Rogers’ sports activities media property, similar to Sportsnet.
Rogers and Kroenke Sports & Entertainment are the one sports activities conglomerates that personal three or extra main sports activities groups after Fenway Sports Group reached a deal to sell the NHL’s Pittsburgh Penguins. But in contrast to KSE, and FSG beforehand, Rogers’ property are all concentrated in the identical locale, which may supply added synergies within the fourth-largest metropolis in North America.