The merger with Shaw led to a major boost in Rogers’ subscribers and revenue in Q2, even as lower ad revenue continues to hound its Media division.
A 30% increase in revenue was largely due to the completion of the company’s merger with Shaw, leading to a 93% increase in Cable revenue and 10% increase in Wireless revenue. The Shaw merger also came with an 89% increase in cable operating expenses, but the segment still ended the quarter with an adjusted EBITDA of $1.03 billion.
Revenue in the company’s Media division was up 4% year-over-year, a slowing of momentum from the 10% increase it had in Q1. The increase was driven largely by higher sports revenue, primarily from the Toronto Blue Jays, as the company continues to report lower ad revenue “across all divisions” being a slight drag on performance. Low demand has also caused revenue from Today’s Shopping Choice to decline for another quarter, though that has also come with a corresponding decline in TSC-related operating expenses.
Higher Blue Jays player payroll also led to an increase in Media expenses. Improvements and renovations at the Rogers Centre also led to $49 million in capital expenditures during the quarter.