Rogers Communications Inc. is calling on the next Canadian government to support investment in Canadian telecoms amid Donald Trump’s trade war. 

Following the release of its first quarter results Wednesday, April 23, Rogers met with shareholders in its 2025 annual general meeting. In the meeting, executive chair Edward Rogers said the trade war between Canada and the U.S. has been a “wake-up call” and urged the next Canadian government to help the country establish its own economic sovereignty. 

He also claimed that economic sovereignty won’t happen without the networks to power it and said the government needs to support investment in Canadian infrastructure. 

“Now, more than ever, we need the Canadian government to encourage investment in Canada, to reward investment in Canada,” he said.

When asked which party the company hopes will win in next week’s election, Rogers’ CEO Tony Staffieri did not name a specific party but reiterated Edward Rogers’ call for supporting investment in telecommunications infrastructure. 

“The key to growing the economy is continued investment in the digital infrastructure… We need a government that supports that investment and encourages that investment,” Staffieri said, adding he believes it is important to elect a majority government so it “can take a long-term policy view of decisions that need to be made for the country.”

“Current regulations are undermining Canadian network builders and hurting Canadian broadcasters at this critical time for our country,” he said.

Edward Rogers said the company is not pursuing a growth strategies south of the border, nor is it building global health or digital businesses overseas. BCE Inc. announced its plan to expand into the U.S. in November with its purchase of Ziply Fibre. Telus Corp. has a division overseas.

Following the release of the company’s final quarter results of fiscal 2024 in January, Staffieri said Rogers was preparing for the unpredictable political environment between Canada and the U.S. —  a sentiment he echoed more recently. 

“Next week, there will be a new government in Canada. We need the government to create economic sovereignty for our country, our economy, and our sector,” he said Wednesday morning.

But the trade war is not the only factor potentially weighing on Rogers’ performance. In its first-quarter results conference call, Rogers’ CFO Glenn Brandt said the whole industry is facing a market slowdown due to decreased immigration to Canada, a matter the company has raised in the past. 

Despite the economic uncertainty the company says it is facing, Rogers reported positive quarterly results for the three months ended March 31. Profit increased to $280 million – up nine per cent from $256 million the previous year. Total revenue only increased two per cent – to nearly $4.98 billion, up from $4.9 billion. 

Staffieri aditionally cited the company’s track record in finding efficiencies, saying it has been “very effective” over the past three years. He said the company will continue to improve efficiency and bring costs in line with revenue growth in what he called a “moderate growth environment.”

During the AGM, Staffieri said Rogers’ new AI-powered tools “make it simpler for customers to find answers more quickly and for our agents to find solutions more efficiently.”

In February, the company confirmed it was laying off a number of its customer service staff, primarily in Ontario. 

“As customer habits continue to evolve, we’re investing in digital tools and self-serve options that help our customers find what they’re looking for faster. While a small percentage of roles in our customer service team are impacted, we continue to grow and hire people to support our operations across the country,” a Rogers spokesperson told The Wire Report at the time. 

The company also gave an update on its $4.7 billion MLSE deal Wednesday, saying it is on track to close mid-2025. Once finalized, Rogers will control 75 per cent of the organization. Brandt said he does not expect any hurdles from the CRTC in finalizing the transaction. 

Brandt said Rogers continues to work towards reducing leverage and strengthening its balance sheet. Between a $4 billion hybrid securities offering from February and the $7 billion equity investment led by Blackstone, Brandt said the transactions would add $9 billion of equity capital to the balance sheet, lowering its debt leverage ratio from 4.5x at the end of 2024 to 3.6x as of March 31 had the deal been closed by that time. As of the end of March, it sat at 4.3x.

Under the Blackstone transaction, Brandt said the new subsidiary of Rogers is expected to distribute up to approximately $400 million to Blackstone in the first five years post-closing. After that, Rogers’ average capital cost for the investment is expected to be around seven per cent per year. Brandt says Rogers intends to use the net proceeds from the transaction to repay debt. 

When asked if the company hopes to announce a transaction with third-party investors sometime this year, related to its sports holdings, Brandt said the company is in talks with “folks who are interested in the assets we own and are soon to acquire. 

“It’s premature for me to start speculating on when that might result in a transaction,” Brandt said. He said Rogers believes the value of those assets to be approximately $15 billion after the MLSE deal closes.  

“We are working on a clear plan to surface more value for our sports assets over the medium term,” Staffieri said during the AGM later in the morning. 

“I want to be clear, we’re investing in these appreciating assets because we see a clear path to monetize them and to unlock their unrecognized value in our share price. We recognize the pressure we have seen on our share price, and we’re taking the necessary steps to address this,” he said. 

Wireless average revenue per user (ARPU) dropped by $1.12 to $56.94 year-over-year. Cable average revenue per account (ARPA) also fell from $140.10 in the same quarter of 2024 to $136.97 – down by $3.13. 

Media revenue grew to $596 million – up 24 per cent from $479 million the previous year. The company attributes the growth primarily to more Toronto Blue Jays home games and “subscriber and advertising revenue related to the launch of Warner Bros. Discovery’s suite of channels and content.”

mcollins@thewirereport.ca