- Rogers Communications (RCI, Financial) reports Q1 2025 with a 2% growth in total service revenue and adjusted EBITDA.
- A $7 billion minority equity investment from Blackstone is expected to reduce the debt leverage ratio from 5.2x to 3.6x.
- Media revenue surged 24% due to a new 12-year NHL rights agreement.
Rogers Communications Inc. (RCI) announced its first-quarter 2025 financial results, showcasing a 2% increase in both total service revenue, reaching $4,447 million, and adjusted EBITDA at $2,254 million. The company achieved a consolidated adjusted EBITDA margin of 45%, while net income rose by 9% to $280 million.
Key operational highlights for Rogers include 57,000 combined net additions for mobile phone and internet services, with mobile phone average revenue per user (ARPU) reported at $56.94. The media segment performed exceptionally, boasting a 24% revenue increase to $596 million, spurred by a new 12-year agreement for NHL media rights.
A pivotal development for Rogers this quarter is the $7 billion minority equity investment from Blackstone, aimed at significantly reducing the company's debt leverage ratio from 5.2x to a projected 3.6x. This transformative transaction is expected to bolster the balance sheet and improve financial flexibility.
The company maintained strong liquidity of $7.5 billion and generated $586 million in free cash flow. Additionally, Rogers declared a dividend of $0.50 per share and removed the discount on shares in its dividend reinvestment plan, reflecting confidence in its financial stability and future cash flow capabilities.
