Rogers Communications Inc. has extended the deadline of its $26-billion proposed merger with Shaw Communications Inc. to Dec. 31 as the company’s second quarter profit jumps.
The deadline for the deal to close was previously extended to July 31.
On the company’s earnings call with analysts Wednesday, CEO Tony Staffieri said the decision to move the date reflects the commitment it and Shaw have to getting the deal done.
“We wanted to set a date that made it clear that we have that commitment,” he said.
Even though the telecom giant remains confident that the deal will close, especially with the additional time, it says it does have “strategies” available in the event that the transaction faces further hurdles.
Rogers, Shaw and Quebecor Inc. still need to reach a definitive agreement on the sale of wireless carrier Freedom Mobile as well — a $2.85-billion deal that is intended to help appease regulators mulling the Rogers-Shaw merger. An agreement was widely expected to come earlier this month.
Rogers said it is continuing to work with Quebecor on this agreement and to address the “complexities” associated with the sale.
The Rogers-Shaw deal has received approval from the Canadian Radio-television and Telecommunications Commission, but still needs to get the greenlight from the Competition Bureau and Innovation, Science and Economic Development Canada.
Rogers said Wednesday that it recorded an increase in profit and sales in its latest quarter as its wireless service revenue increased by double digits.
The cable, wireless and media company says it earned $409 million in its second quarter or 76 cents per diluted share, up 35 per cent from $302 million and 60 cents per share a year earlier.
Adjusted profits were $463 million or 86 cents per share, compared with $387 million or 76 cents per share in the second quarter of 2021.
Revenues for the three months ended June 30 were $3.87 billion, up from $3.58 billion the year before as wireless service revenue soared 11 per cent.
Cable service revenue increased by three per cent in the second quarter primarily due to service pricing changes and increases in its internet subscriber base while media revenue increased by 21 per cent due to higher advertising and Blue Jays revenues.
Rogers also said that the customer credits related to its July 8 network outage are estimated to cost $150 million and will be included in its third quarter results.
In a news release, Staffieri said the company’s performance reflects “the incredible hard work by our wireless, cable, and media teams as we continue to recover from the impacts of the pandemic.”
“In the coming quarters, we will continue to focus on delivering additional improvements as we build on these results, while also working hard to regain the trust of our customers following our recent network outage.”
Companies in this story: (TSX:RCI.B)
The Canadian Press
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