Rogers Grows Earnings in Q1: Is It a Bargain Buy?
On April 23, Rogers Communications Inc. (TSX: RCI.B) reported modest but steady financial performance for Q1 2025, overcoming a softer economic environment with 2% year-over-year growth in both service revenue and adjusted EBITDA. The company’s consolidated EBITDA margin reached 45%, while wireless operations delivered an industry-leading 65% margin, up 40 basis points.
Net income rose 9% to $280 million, while free cash flow held steady at $586 million. Subscriber growth remained a bright spot, with 57,000 total net additions—34,000 from mobile and 23,000 from Internet.
Rogers’ Media segment surged 24% in revenue, lifted by strong sports content performance. It also recently announced the renewal of national NHL rights for another 12 years.
In addition, the company announced a transformative $7 billion equity investment from Blackstone, reducing its pro forma debt leverage ratio to 3.6x—down from 5.2x following the Shaw acquisition.
Although Rogers hasn’t been generating tremendous growth, its results are encouraging nonetheless. This is, after all, primarily an attractive dividend play for investors; Rogers stock yields 5.7% right now as investors have been dumping it amid the current volatility in the market – it’s down more than 20% year to date and trades within a couple dollars of its 52-week low.
With strong fundamentals, this can still make for a solid income stock to buy and hold for years. It trades at less than 11 times trailing earnings, pays a solid dividend, and it’s a top brand in Canada. Rogers can be a great stock to simply put into your tax-free savings account and forget about.
