A boost in sports revenue buoyed Rogers Communications’ media earnings in Q2 2024, with the overall company revenues holding steady.

Rogers reported a 7% year-over-year increase in media revenue, coming in at $736 million in 2024 compared to $686 million in the prior Q2. The boost was attributed to revenue from the Toronto Blue Jays, as well as a strong performance from Sportsnet, partially thanks to the Edmonton Oilers reaching the Stanley Cup Finals.

The company is anticipating continued growth in media in the back half of the fiscal year, thanks to the continuation of the baseball season and the start of the new NHL season.

However, the company also reported an 8% increase in operating costs for its media business in Q2, on par with revenue at $736 million, which was attributed to an uptick in payroll and game-day costs for the Toronto Blue Jays.

In a call with investors on Wednesday (July 24), president and CEO Tony Staffieri said the company is seeking ways to lower its content costs on the media side.

One of the ways is through its content agreement with Warner Bros. Discovery (WBD) and NBCUniversal, announced in June. Staffieri said the move to go directly to studios to license content will be a more cost-effective way to meet customer demand than through channel subscriptions.

According to Rogers’ financial statements, new program rights agreements with WBD, the Edmonton Oilers and the Calgary Flames have increased its contractual obligations by $1.9 billion over the next 12 years.

Overall revenue at Rogers rose by 1% in Q2 2024, coming in at $5.09 billion from $5.05 billion in the prior fiscal year. Net income jumped to $394 million from $109 million in Q2 2023. Adjusted EBITDA hit $2.33 billion in the quarter, up 6% from $2.19 billion in the prior Q2.

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