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Rogers Communications Q3 Earnings and Revenues Lag Estimates
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Rogers Communications (RCI - Free Report) reported third-quarter 2024 adjusted earnings of $1.04 per share, which lagged the Zacks Consensus Estimate by 2.80% and increased 9.6% year over year.
Revenues of $3.76 billion lagged the consensus mark by 1.39% and declined 1% year over year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
In domestic currency (Canadian dollar), adjusted earnings increased 11.81% year over year to C$1.42 per share. Total revenues increased 0.73% year over year, reaching C$5.12 billion, driven primarily by revenue growth in media businesses.
Rogers Communication, Inc. Price, Consensus and EPS Surprise
Wireless revenues (51.08% of total revenues) increased 1.39% year over year to C$2.62 billion. Service revenues rose 1.97% to C$2.06 billion. Equipment revenues declined 0.72% to C$554 million.
Wireless service revenues increased 2% this quarter, which benefited from growth in the mobile phone subscriber base over the past year.
Monthly mobile phone ARPU was C$58.57, down 0.4% year over year.
As of Sept. 30, 2024, the prepaid subscriber base totaled 1.161 million, representing a loss of 117K subscribers year over year. The monthly churn rate was 2.8% compared with 6% reported in the year-ago quarter.
As of Sept. 30, 2024, the postpaid wireless subscriber base totaled 10.69 million, representing net additions of 367K subscribers year over year. The monthly churn rate was 1.12% compared with 1.08% in the year-ago quarter.
Segment operating expenses fell 2.71% year over year to C$1.25 billion.
Adjusted EBITDA increased 5.49% year over year to C$1.36 billion. Adjusted EBITDA margin expanded 200 basis points (bps) on a year-over-year basis to 52.1%.
Cable Details
Cable revenues (38.4% of total revenues) declined 1.15% year over year to C$1.97 billion due to a decrease in the Home Phone and Satellite subscriber base.
Service revenues fell 1.21% year over year to C$1.96 billion. Equipment revenues increased 14.29% on a year-over-year basis to C$8 million.
As of Sept. 30, 2024, the retail Internet subscriber count was nearly 4.247 million, representing a net reduction of 55K million year over year.
As of Sept. 30, 2024, total Smart Home Monitoring subscribers reached 120K, indicating an increase of 30K subscribers. The total Home Phone subscriber count was nearly 1.53 million, reflecting a loss of 114K customers in the reported quarter.
ARPA was C$140.36, higher than the C$138.46 reported in the year-ago quarter.
Segment operating expenses declined 8.32% year over year to C$837 million.
Adjusted EBITDA increased 4.91% year over year to C$1.13 billion.
Media Details
Media revenues (12.7% of total revenues) increased 11.43% year over year to C$653 million due to higher sports-related revenues, driven by higher subscriber revenues and higher revenues at the Toronto Blue Jays.
Segment operating expenses increased 8.35% year over year to C$519 million.
The company reported an adjusted EBITDA of $134 million, up 25.23% year over year due to higher revenues and expense changes.
Consolidated Results
Operating costs declined 3.62% to C$2.5 billion. As a percentage of revenues, operating costs were 50.38%.
Adjusted EBITDA rose 5.56% year over year to C$2.54 billion. Adjusted EBITDA margin expanded 230 bps to 49.6%.
Balance Sheet & Cash Flow Details
As of Sept. 30, 2024, Rogers had C$4.8 billion of available liquidity, including $0.8 billion in cash and cash equivalents and a combined C$4 billion available under the bank credit facility.
As of June 30, 2024, RCI had C$4.3 billion of available liquidity, including $0.45 billion in cash and cash equivalents and a combined C$3.85 billion available under the bank credit facility.
Rogers’ debt leverage ratio was 4.6 times as of Sept. 30, 2024, as a result of cost reductions, earnings growth, proceeds from asset sales and commencing the payback of acquisition-related debt.
Cash flow from operating activities was C$1.89 billion compared with C$1.47 billion generated in the previous quarter. Free cash flow was C$915 million compared with C$666 million generated in the previous quarter.
Rogers paid dividends worth C$266 million and declared a C$0.50 per share dividend.
Guidance
For 2024, Rogers expects total service revenues to grow between 8% and 10%. Adjusted EBITDA is expected to grow in the range of 12-15%.
Capital expenditure is still expected between C$3.8 billion and C$4 billion. Free cash flow is expected in the range of C$2.9-C$3.1 billion.
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Rogers Communications Q3 Earnings and Revenues Lag Estimates
Rogers Communications (RCI - Free Report) reported third-quarter 2024 adjusted earnings of $1.04 per share, which lagged the Zacks Consensus Estimate by 2.80% and increased 9.6% year over year.
Revenues of $3.76 billion lagged the consensus mark by 1.39% and declined 1% year over year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
In domestic currency (Canadian dollar), adjusted earnings increased 11.81% year over year to C$1.42 per share. Total revenues increased 0.73% year over year, reaching C$5.12 billion, driven primarily by revenue growth in media businesses.
Rogers Communication, Inc. Price, Consensus and EPS Surprise
Rogers Communication, Inc. price-consensus-eps-surprise-chart | Rogers Communication, Inc. Quote
Wireless Details
Wireless revenues (51.08% of total revenues) increased 1.39% year over year to C$2.62 billion. Service revenues rose 1.97% to C$2.06 billion. Equipment revenues declined 0.72% to C$554 million.
Wireless service revenues increased 2% this quarter, which benefited from growth in the mobile phone subscriber base over the past year.
Monthly mobile phone ARPU was C$58.57, down 0.4% year over year.
As of Sept. 30, 2024, the prepaid subscriber base totaled 1.161 million, representing a loss of 117K subscribers year over year. The monthly churn rate was 2.8% compared with 6% reported in the year-ago quarter.
As of Sept. 30, 2024, the postpaid wireless subscriber base totaled 10.69 million, representing net additions of 367K subscribers year over year. The monthly churn rate was 1.12% compared with 1.08% in the year-ago quarter.
Segment operating expenses fell 2.71% year over year to C$1.25 billion.
Adjusted EBITDA increased 5.49% year over year to C$1.36 billion. Adjusted EBITDA margin expanded 200 basis points (bps) on a year-over-year basis to 52.1%.
Cable Details
Cable revenues (38.4% of total revenues) declined 1.15% year over year to C$1.97 billion due to a decrease in the Home Phone and Satellite subscriber base.
Service revenues fell 1.21% year over year to C$1.96 billion. Equipment revenues increased 14.29% on a year-over-year basis to C$8 million.
As of Sept. 30, 2024, the retail Internet subscriber count was nearly 4.247 million, representing a net reduction of 55K million year over year.
As of Sept. 30, 2024, total Smart Home Monitoring subscribers reached 120K, indicating an increase of 30K subscribers. The total Home Phone subscriber count was nearly 1.53 million, reflecting a loss of 114K customers in the reported quarter.
ARPA was C$140.36, higher than the C$138.46 reported in the year-ago quarter.
Segment operating expenses declined 8.32% year over year to C$837 million.
Adjusted EBITDA increased 4.91% year over year to C$1.13 billion.
Media Details
Media revenues (12.7% of total revenues) increased 11.43% year over year to C$653 million due to higher sports-related revenues, driven by higher subscriber revenues and higher revenues at the Toronto Blue Jays.
Segment operating expenses increased 8.35% year over year to C$519 million.
The company reported an adjusted EBITDA of $134 million, up 25.23% year over year due to higher revenues and expense changes.
Consolidated Results
Operating costs declined 3.62% to C$2.5 billion. As a percentage of revenues, operating costs were 50.38%.
Adjusted EBITDA rose 5.56% year over year to C$2.54 billion. Adjusted EBITDA margin expanded 230 bps to 49.6%.
Balance Sheet & Cash Flow Details
As of Sept. 30, 2024, Rogers had C$4.8 billion of available liquidity, including $0.8 billion in cash and cash equivalents and a combined C$4 billion available under the bank credit facility.
As of June 30, 2024, RCI had C$4.3 billion of available liquidity, including $0.45 billion in cash and cash equivalents and a combined C$3.85 billion available under the bank credit facility.
Rogers’ debt leverage ratio was 4.6 times as of Sept. 30, 2024, as a result of cost reductions, earnings growth, proceeds from asset sales and commencing the payback of acquisition-related debt.
Cash flow from operating activities was C$1.89 billion compared with C$1.47 billion generated in the previous quarter. Free cash flow was C$915 million compared with C$666 million generated in the previous quarter.
Rogers paid dividends worth C$266 million and declared a C$0.50 per share dividend.
Guidance
For 2024, Rogers expects total service revenues to grow between 8% and 10%. Adjusted EBITDA is expected to grow in the range of 12-15%.
Capital expenditure is still expected between C$3.8 billion and C$4 billion. Free cash flow is expected in the range of C$2.9-C$3.1 billion.
Zacks Rank & Other Stocks to Consider
Rogers currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Consumer Discretionary sector are Norwegian Cruise Line (NCLH - Free Report) , Liberty Media Corporation - Liberty Formula One Series A (FWONA - Free Report) and Funko (FNKO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NCLH is set to report its quarterly results on Oct. 31. FWONA and FNKO are set to report their quarterly result on Nov. 7.
The Zacks Consensus Estimate for NCLH’s third-quarter 2024 earnings per share is pegged at 94 cents, up 1.07% over the past 30 days.
The Zacks Consensus Estimate for FWONA’s third-quarter 2024 earnings per share is pegged at 31 cents, up 29.1% over the past 30 days.
The Zacks Consensus Estimate for FNKO’s third-quarter 2024 earnings is pegged at 4 cents per share, unchanged over the past 30 days.