Rogers Communications saw an overall revenue increase in its Q1 results, partly attributed to a 24% media revenue boost.

For the quarter ending March 31, the media revenue increase was attributed to higher sports-related revenue, including the Toronto Blue Jays, and higher subscriber and advertising revenue related to the launch of Warner Bros. Discovery’s (WBD) suite of channels and content on Jan 1. This resulted in $596 million in media revenues for the quarter, compared to $479 million in the same period last year.

For the same reasons, the media sector’s adjusted EBITDA increased by $36 million compared to the same period last year.

Total revenue increased by 2% to approximately $4.97 billion, adjusted EBITDA at $2.25 billion and net income at $280 million.

However, operating costs for the media sector increased by 14%, which was attributed to higher programming and production costs, including those related to the WBD launch and higher player salaries at the Blue Jays.

On a conference call, Rogers president and CEO Tony Staffieri highlighted the company’s growing sports portfolio. Last year, Rogers signed an agreement to buy Bell’s 37.5% ownership stake in Maple Leaf Sports & Entertainment (MLSE) for $4.7 billion. As well, earlier this month, the company reportedly paid $11 billion to renew its broadcast contract with the NHL for another 12 years. Staffieri expects that deal to close by mid-2025.

“Sports assets continue to appreciate significantly in value, and that’s why investors remain very interested in holding a minority position in these appreciating assets,” said Staffieri on the call. “We continue to meet with external investors who recognize the opportunity with our sports portfolio.”

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