Rogers Communications has extended the deadline for closing its $26 billion acquisition of Shaw Communications to December 31, ahead of the release of its second-quarter financial results, which showed a rising profit.
The deadline for closing the deal had previously been pushed back to July 31.
During the company’s earnings conference call on Wednesday, Chief Executive Tony Staffieri told analysts the postponement was a testament to Rogers and Shaw’s dedication to closing the deal. . “We wanted to set a date that clearly indicates that we have this commitment,” he said.
While the telecom giant remains confident the deal will close, especially with this new additional term, it says it has “strategies” ready in case the deal hits further hurdles. Rogers, Shaw and Quebecor have yet to reach a definitive agreement on the sale of mobile operator Freedom Mobile — a $2.85 billion deal that aims to assuage competition regulators’ fears over the Rogers merger -Shaw. A deal was widely expected earlier this month. Rogers said it continues to work with Quebecor on the deal and resolve the “complexities” associated with the sale.
The Rogers-Shaw deal has received approval from the Canadian Radio-television and Telecommunications Commission, but has yet to get the green light from the Competition Bureau and Innovation, Science and Economic Development Canada.
Increase in profits
Separately, Rogers said on Wednesday it saw an increase in profits and sales in the most recently completed quarter, as its wireless service revenue rose more than 10%.
Rogers Communications posted a profit of 409 million for its second quarter, or 76 cents per share, an increase of 35% compared to its profit of 302 million, or 60 cents per share, for the same period last year. Adjusted profit was 463 million, or 86 cents per share, compared to 387 million, or 76 cents per share, in the second quarter of 2021.
Revenue for the quarter ended June 30 was $3.87 billion, up from $3.58 billion a year ago, as wireless revenue jumped 11%. Cable services revenues increased 3% in the second quarter, primarily due to price changes and increases in the Internet subscriber base, while media revenues increased 21 %, thanks to an increase in advertising revenue and revenue from the Blue Jays, the baseball team in Toronto.
Rogers also estimated that the credits it will issue to customers for the July 8 outage would cost it $150 million, and said that amount would be included in third-quarter results.