July 23 (Reuters) - Rogers Communications ( RCIAF ) has
raised its annual service revenue forecast, banking on a boost
from its stake acquisition in Maple Leaf Sports, which owns the
Toronto Raptors basketball team and NHL's Toronto Maple Leafs,
as it bets on live sports.
The Canadian wireless giant said on Wednesday it expects
full-year total service revenue to grow in the range of 3% to
5%, compared with its prior forecast of a 0% to 3% growth.
Rogers controls 75% of Maple Leaf Sports &
Entertainment, after it bought rival
Bell's stake
in the sports firm.
Within the broader media industry, live sports has shone
in the U.S. and Canada as hardcore fans rush to various
platforms to watch their favorite teams play, despite
consumer pricing
uncertainty arising from shifting global trade policies.
Rogers has made big bets on growing its presence in the
country by signing deals with sports leagues, including a
12-year agreement worth C$11 billion to secure media rights for
Canada's NHL games.
The company's media revenue rose 10% in the second
quarter, helped by higher sports-related revenue from the NHL
playoffs and the launch of Warner Bros Discovery's ( WBD ) suite
of television channels.
It reported quarterly revenue of C$5.22 billion ($3.84
billion), beating analysts' average estimate of C$5.18 billion,
according to data compiled by LSEG.
The company has also been benefiting from its expanding 5G
coverage across Canada as well as the offers on its flexible
mobile plans, even as competition from rivals BCE and
Telus ( TU ) intensifies.
Rogers added 35,000 monthly postpaid bill-paying
wireless phone subscribers during the quarter, just shy of
estimates of 35,640 additions, according to analysts polled by
Visible Alpha.
($1 = 1.3586 Canadian dollars)