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Rogers Communications (RCI - Free Report) reported third-quarter 2023 adjusted earnings of 95 cents per share, which beat the Zacks Consensus Estimate by 20.25% and increased 47.9% year over year.
Revenues of $3.8 billion beat the consensus mark by 1.6% and jumped 32.3% year over year.
In domestic currency (Canadian dollar), adjusted earnings increased 51.2% year over year to C$1.27 per share. Total revenues increased 36% year over year, reaching C$5.09 billion, driven primarily by revenue growth across all businesses.
Rogers Communication, Inc. Price, Consensus and EPS Surprise
Wireless (50.7% of total revenues) revenues increased 14% year over year to C$2.58 billion. Service revenues increased 15% to C$2.03 billion. Equipment revenues were up 10.3% to C$558 million.
Wireless service revenues benefited from growth in the mobile phone subscriber base, revenues from Shaw Mobile subscribers acquired through the Shaw transaction (completed on Apr 3) and the impact of the July 2022 network outage-related credits.
Monthly mobile phone ARPU was C$58.83, up 3.5% year over year.
As of Sep 30, 2023, the prepaid subscriber base totaled 1.278 million, reflecting a gain of 36K subscribers compared with 57K added in the year-ago quarter. The monthly churn rate was 6% compared with 4.77% reported in the year-ago quarter.
As of Sep 30, 2023, the postpaid wireless subscriber base totaled 10.33 million, reflecting net additions of 225K compared with additions of 164K in the year-ago quarter. The monthly churn rate was 1.08% compared with 0.97% in the year-ago quarter.
Segment operating expenses increased 9.9% year over year to C$1.3 billion.
Adjusted EBITDA increased 18.4% year over year to C$1.29 billion. Adjusted EBITDA margin expanded 190 basis points (bps) on a year-over-year basis to 50.1%.
Cable Details
Cable revenues (39.1% of total revenues) surged 104.4% year over year to C$1.993 billion as a result of the acquisition of Shaw as well as the impact of the July 2022 network outage-related credits.
Service revenues jumped 105.2% year over year to C$1.986 billion. Equipment revenues remained constant on a year-over-year basis to $7 million.
As of Sep 30, 2023, the retail Internet subscriber count was nearly 4.302 million, reflecting net additions of 18K compared with additions of 6K in the year-ago quarter.
As of Sep 30, 2023, total Smart Home Monitoring subscribers reached 90K, highlighting a loss of 2K subscribers. The total Home Phone subscriber count was nearly 1.648 million, reflecting a loss of 36K customers in the reported quarter.
ARPA was C$138.46, higher than the C$124.34 reported in the year-ago quarter.
Segment operating expenses surged 79% year over year to C$913 million.
Adjusted EBITDA soared 132.3% year over year to C$1.08 billion.
Media Details
Media (13.6% of total revenues) revenues increased 10.6% year over year to C$586 million, mainly due to higher sports-related revenues, primarily at the Toronto Blue Jays.
Segment operating expenses increased 5.5% year over year to C$479 million.
Nevertheless, adjusted EBITDA soared 40.8% year over year to C$107 million, driven by higher revenues.
Consolidated Results
Operating costs increased 24.1% to C$2.68 billion. As a percentage of revenues, operating costs contracted 510 bps to 52.7%.
Adjusted EBITDA surged 52.3% year over year to C$2.41 billion. Adjusted EBITDA margin expanded 510 bps to 47.3%.
Balance Sheet & Cash Flow Details
As of Sep 30, 2023, Rogers had C$7.3 billion of available liquidity, including $2.5 billion in cash and cash equivalents and a combined C$4.8 billion available under the bank credit facility.
In comparison, as of Jun 30, 2023, Rogers had C$5.1 billion of available liquidity, including $0.4 billion in cash and cash equivalents and a combined C$4.8 billion available under the bank credit facility.
Rogers’ debt leverage ratio decreased to 4.9 times as of Sep 30, 2023, down from 5.1 times reported in the previous quarter.
Cash flow from operating activities was C$1.75 billion compared with C$1.64 billion generated in the previous quarter. Free cash flow was C$745 million compared with C$476 million generated in the previous quarter.
Rogers paid dividends worth C$264 million and declared a C$0.50 per share dividend.
Guidance
For 2023, Rogers expects total service revenues to grow between 26% and 30%. Adjusted EBITDA is expected to grow in the range of 33-36%.
The company already achieved a debt leverage ratio of 4.9x ahead of schedule and is now targeting 4.8x by the end of the year.
Capital expenditure is still expected between C$3.70 billion and C$3.90 billion. Free cash flow is expected in the range of C$2.2-C$2.5 billion.
Zacks Rank & Stocks to Consider
Lionsgate currently carries a Zacks Rank #3 (Hold).
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Rogers Communications (RCI) Q3 Earnings Beat, Revenues Rise Y/Y
Rogers Communications (RCI - Free Report) reported third-quarter 2023 adjusted earnings of 95 cents per share, which beat the Zacks Consensus Estimate by 20.25% and increased 47.9% year over year.
Revenues of $3.8 billion beat the consensus mark by 1.6% and jumped 32.3% year over year.
In domestic currency (Canadian dollar), adjusted earnings increased 51.2% year over year to C$1.27 per share. Total revenues increased 36% year over year, reaching C$5.09 billion, driven primarily by revenue growth across all businesses.
Rogers Communication, Inc. Price, Consensus and EPS Surprise
Rogers Communication, Inc. price-consensus-eps-surprise-chart | Rogers Communication, Inc. Quote
Wireless Details
Wireless (50.7% of total revenues) revenues increased 14% year over year to C$2.58 billion. Service revenues increased 15% to C$2.03 billion. Equipment revenues were up 10.3% to C$558 million.
Wireless service revenues benefited from growth in the mobile phone subscriber base, revenues from Shaw Mobile subscribers acquired through the Shaw transaction (completed on Apr 3) and the impact of the July 2022 network outage-related credits.
Monthly mobile phone ARPU was C$58.83, up 3.5% year over year.
As of Sep 30, 2023, the prepaid subscriber base totaled 1.278 million, reflecting a gain of 36K subscribers compared with 57K added in the year-ago quarter. The monthly churn rate was 6% compared with 4.77% reported in the year-ago quarter.
As of Sep 30, 2023, the postpaid wireless subscriber base totaled 10.33 million, reflecting net additions of 225K compared with additions of 164K in the year-ago quarter. The monthly churn rate was 1.08% compared with 0.97% in the year-ago quarter.
Segment operating expenses increased 9.9% year over year to C$1.3 billion.
Adjusted EBITDA increased 18.4% year over year to C$1.29 billion. Adjusted EBITDA margin expanded 190 basis points (bps) on a year-over-year basis to 50.1%.
Cable Details
Cable revenues (39.1% of total revenues) surged 104.4% year over year to C$1.993 billion as a result of the acquisition of Shaw as well as the impact of the July 2022 network outage-related credits.
Service revenues jumped 105.2% year over year to C$1.986 billion. Equipment revenues remained constant on a year-over-year basis to $7 million.
As of Sep 30, 2023, the retail Internet subscriber count was nearly 4.302 million, reflecting net additions of 18K compared with additions of 6K in the year-ago quarter.
As of Sep 30, 2023, total Smart Home Monitoring subscribers reached 90K, highlighting a loss of 2K subscribers. The total Home Phone subscriber count was nearly 1.648 million, reflecting a loss of 36K customers in the reported quarter.
ARPA was C$138.46, higher than the C$124.34 reported in the year-ago quarter.
Segment operating expenses surged 79% year over year to C$913 million.
Adjusted EBITDA soared 132.3% year over year to C$1.08 billion.
Media Details
Media (13.6% of total revenues) revenues increased 10.6% year over year to C$586 million, mainly due to higher sports-related revenues, primarily at the Toronto Blue Jays.
Segment operating expenses increased 5.5% year over year to C$479 million.
Nevertheless, adjusted EBITDA soared 40.8% year over year to C$107 million, driven by higher revenues.
Consolidated Results
Operating costs increased 24.1% to C$2.68 billion. As a percentage of revenues, operating costs contracted 510 bps to 52.7%.
Adjusted EBITDA surged 52.3% year over year to C$2.41 billion. Adjusted EBITDA margin expanded 510 bps to 47.3%.
Balance Sheet & Cash Flow Details
As of Sep 30, 2023, Rogers had C$7.3 billion of available liquidity, including $2.5 billion in cash and cash equivalents and a combined C$4.8 billion available under the bank credit facility.
In comparison, as of Jun 30, 2023, Rogers had C$5.1 billion of available liquidity, including $0.4 billion in cash and cash equivalents and a combined C$4.8 billion available under the bank credit facility.
Rogers’ debt leverage ratio decreased to 4.9 times as of Sep 30, 2023, down from 5.1 times reported in the previous quarter.
Cash flow from operating activities was C$1.75 billion compared with C$1.64 billion generated in the previous quarter. Free cash flow was C$745 million compared with C$476 million generated in the previous quarter.
Rogers paid dividends worth C$264 million and declared a C$0.50 per share dividend.
Guidance
For 2023, Rogers expects total service revenues to grow between 26% and 30%. Adjusted EBITDA is expected to grow in the range of 33-36%.
The company already achieved a debt leverage ratio of 4.9x ahead of schedule and is now targeting 4.8x by the end of the year.
Capital expenditure is still expected between C$3.70 billion and C$3.90 billion. Free cash flow is expected in the range of C$2.2-C$2.5 billion.
Zacks Rank & Stocks to Consider
Lionsgate currently carries a Zacks Rank #3 (Hold).
NetEase (NTES - Free Report) , AST SpaceMobile (ASTS - Free Report) and Genius Sports Limited (GENI - Free Report) are some better-ranked stocks that investors can consider in the broader sector. While NTES sports a Zacks Rank #1 (Strong Buy), ASTS and GENI carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of NetEase have gained 55.5% year to date. NTES is set to report its third-quarter 2023 results on Nov 16.
Shares of AST SpaceMobile have declined 14.3% year to date. ASTS is slated to report its third-quarter 2023 results on Nov 13.
Shares of Genius Sports Limited have gained 45.1% year to date. GENI is set to report its third-quarter 2023 results on Nov 13.