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Rogers Beats Earnings, Shaw Deal Hangs in the Balance

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  Published in Media and Entertainment on Thursday, January 29th 2026 at 8:40 GMT by The Globe and Mail
      Locales: Ontario, Alberta, CANADA

Toronto, ON - January 29th, 2026 - Rogers Communications Inc. continues to demonstrate financial resilience, reporting fourth-quarter earnings that surpassed analyst expectations. However, the company's future growth remains inextricably linked to the prolonged and complex regulatory review of its proposed $26-billion acquisition of Shaw Communications. The report, released Tuesday, paints a picture of a company performing well in key areas, yet hampered by ongoing uncertainty.

Rogers posted adjusted earnings per share of $3.38 for the quarter ending December 31st, exceeding the Refinitiv Eikon estimate of $3.16. Total revenue reached $3.77 billion, representing a 1.7% increase year-over-year. These figures are largely driven by strong performances in the company's sports media and wireless divisions.

The sports media segment, encompassing Sportsnet and NHL properties, saw a substantial 15% revenue increase. This growth is attributed to both heightened advertising revenue - likely fueled by increased viewership and engagement with live sports - and a rise in subscriber numbers. This success highlights the increasing importance of content ownership and distribution in the evolving media landscape.

Wireless revenue also experienced healthy growth, climbing 4.5% during the quarter. Rogers successfully added 63,000 postpaid wireless customers, exceeding expectations and indicating continued demand for its services. The company's ongoing investments in 5G infrastructure are likely playing a crucial role in attracting and retaining these customers, offering improved network performance and speeds.

During a conference call with analysts, Rogers CEO Tony Staffieri acknowledged the positive momentum in both wireless and sports media. However, he also emphasized the significant headwinds created by the protracted regulatory review of the Shaw deal. "We're seeing good momentum in our wireless business, and the sports media side is performing very well," Staffieri stated, "But we can't ignore the fact that we're in a regulatory environment that's been unpredictable."

The proposed merger with Shaw, intended to create a Canadian telecommunications behemoth, has been under intense scrutiny from the Canadian Radio-television and Telecommunications Commission (CRTC) and Innovation, Science and Economic Development Canada. Originally slated to close in the first quarter of 2023, the deal has faced repeated delays as regulators demand further information regarding its potential impact on competition within the Canadian telecom market.

Recent requests for additional information from the CRTC, particularly concerning competitive dynamics, have further clouded the deal's future. Analysts are now increasingly predicting that approval, if granted at all, won't come until late 2024 or even into 2025 - a significant setback for Rogers' strategic planning. This uncertainty is impacting the company's financial projections, leading Rogers to withhold specific guidance for the fiscal year 2024.

Despite the regulatory hurdles, Rogers remains optimistic about its long-term prospects. The company is continuing to invest heavily in expanding its 5G network, aiming to provide superior connectivity and support future technological advancements. Simultaneously, Rogers is broadening its media offerings, seeking to capture a larger share of the rapidly evolving entertainment market.

"We're confident that we can deliver strong financial results even in a challenging environment," Staffieri assured analysts. "The Shaw deal is obviously a critical piece of that, but we also have a lot of opportunities to grow our business organically." This suggests Rogers is actively pursuing alternative growth strategies, independent of the Shaw acquisition, to mitigate the risks associated with the regulatory delays.

Rogers' stock price reflected this mixed outlook, closing up 2.4% at $27.40 on Tuesday, indicating investor confidence in the company's underlying performance despite the ongoing regulatory uncertainty. The coming months will be crucial in determining the fate of the Shaw deal and, consequently, the future trajectory of Rogers Communications.