A Reliable Cash Cow: This Media Company Delivers in Tough Times

After making some major deals, this telecom stock looks like a strong buy.

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Rogers Communications (TSX:RCI.B) spent the past year proving it can deliver steady results even when the economic backdrop is uncertain. While its share price has been volatile, dropping from last year’s highs before rebounding this summer, the company has leaned into its role as a dependable cash generator, producing consistent revenue growth across wireless, cable, and media. For investors, that stability, combined with a 4% dividend yield, makes Rogers stock an appealing income and resilience play.

Into earnings

In the second quarter of 2025, Rogers stock reported total revenue of $5.22 billion, up 2% from the same period last year. Service revenue also rose 2%, with wireless, cable, and media all posting growth. Wireless service revenue climbed 1% thanks to subscriber gains, while cable also grew 1%, aided by a 26,000 increase in retail internet customers.

Media stood out with a 10% jump in revenue, powered by strong NHL playoff audiences on Sportsnet and the addition of Warner Bros. Discovery channels. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter rose 2% to $2.36 billion. This reflected cost efficiencies and stable margins across its operations.

More to come

Perhaps the most eye-catching move this year has been Rogers stock’s push deeper into sports ownership. On July 1, the company closed its $4.7 billion acquisition of a 37.5% stake in Maple Leaf Sports & Entertainment, making Rogers stock the 75% controlling owner of the Toronto Maple Leafs, Toronto Raptors, Toronto FC, and Toronto Argonauts. Combined with its existing ownership of the Toronto Blue Jays, Rogers now commands a sports portfolio valued at over $15 billion. While the immediate financial lift from MLSE will be seasonal, the long-term potential for integrating these assets into its media and content ecosystem could unlock significant shareholder value.

Rogers stock also focused on strengthening its balance sheet. The completion of a $6.7 billion equity investment from Blackstone and other institutional investors in a subsidiary network company allowed Rogers to repay debt and improve liquidity. The debt leverage ratio has dropped to 3.6 times from 4.5 at the end of 2024. This marked a substantial step toward its long-term target. The disciplined approach to deleveraging comes while still returning capital to shareholders, with $269 million paid out in dividends in the latest quarter.

Looking ahead

Operationally, Rogers continues to invest heavily in network leadership. It launched 5G Advanced technology, the first in Canada, and deployed an undersea fibre line to improve internet reliability for the Southern Gulf Islands in British Columbia. In cable, adjusted EBITDA rose 3% as cost controls outweighed programming and equipment expenses, lifting margins to 58%.

Free cash flow was a standout, hitting $925 million in the quarter, up 39% year over year. That strength helps support both the dividend and ongoing investment plans, with capital expenditures expected to total about $3.8 billion this year, mostly directed toward networks. Management’s updated guidance now calls for service revenue growth of 3% to 5% in 2025, boosted by the MLSE acquisition.

Foolish takeaway

Still, there are challenges to watch. The integration of MLSE and the monetization of sports assets will take time to fully materialize. Programming costs in media and competitive pricing pressure in wireless remain ongoing factors. And while the company has made progress in lowering its debt load, leverage is still elevated compared to some peers. Even so, Rogers stock’s ability to generate cash in virtually all market conditions remains its defining feature. For now, a $10,000 investment could bring in $410 annually at writing.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
RCI.B$48.59205$2.00$410.00Quarterly$9,960.95

The combination of recurring subscription revenue, efficient operations, and high-value media assets provides a stable foundation for growth. For investors looking for a stock that can deliver steady income today and build long-term value tomorrow, Rogers stock continues to fit the bill as a reliable cash cow in a market where predictability is rare.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Rogers Communications. The Motley Fool has a disclosure policy.

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