.jpg)
13 hours ago
1
Article content
TORONTO — Rogers Communications Inc. hopes to find “revenue and cost synergies” in its expanded portfolio of sports assets after becoming the majority owner of Maple Leaf Sports & Entertainment.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
The Toronto-based telecom company believes its stock price undervalues its media and sports holdings and says it is “pursuing all options … to monetize and surface the very substantial unrecognized market value” of those assets.
Article content
Article content
Article content
Earlier this month, Rogers completed its $4.7-billion deal with rival BCE Inc. to buy its 37.5 per cent stake in MLSE. The acquisition, which closed July 1 after receiving the necessary regulatory and league approvals, made Rogers the majority owner of the sports conglomerate that owns the NHL’s Maple Leafs, NBA’s Raptors, CFL’s Argonauts, MLS’ Toronto FC and AHL’s Marlies.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
Rogers also owns MLB’s Toronto Blue Jays.
Article content
“On sports and media, it’s clear that there is significant underlying value and we are squarely focused as we put the assets together … to continue to strengthen our balance sheet,” said Rogers president and CEO Tony Staffieri on a conference call Wednesday, as the company reported its latest earnings.
Article content
“The second part of our task is to surface the value for shareholders. We continue to work through the various options and the good news is we have very good options in front of us.”
Article content
Staffieri said it was premature to provide further insight about possible “synergies” within MLSE, but that Rogers would likely share details of its plans before the end of 2026.
Article content
Article content
He said Rogers has “a very good track record” in finding ways to operate more efficiently, pointing to its 2023 merger with Shaw Communications Inc.
Article content
“We went into this transaction with a view that we could execute on very strong synergies across our sports and media properties and certain things that need to happen before we can execute on those,” he said.
Article content
“But the thinking, the planning is underway and at the right time … we can be more specific.”
Article content
Some industry watchers have speculated about the potential for Rogers to eventually fold the Blue Jays and related stadium assets into MLSE — an option floated by one analyst on the conference call who questioned if that’s where Rogers might stand to eliminate “redundant costs” within its sports portfolio.
Article content
“I expect that as we roll in the Toronto Blue Jays’ Rogers Centre with Scotiabank Arena and the other venues within MLSE and the sports teams within MLSE, we will find revenue and cost synergies,” chief financial officer Glenn Brandt replied.
Article content
Meanwhile, the company updated its financial guidance on Wednesday to reflect the MLSE deal. Rogers now expects service revenue to increase three to five per cent year-over-year in 2025, up from its previous forecast of zero to three per cent growth, as a result of the anticipated contribution from MLSE.
English (US)