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Rogers Communications' Q4 Earnings and Revenues Beat Estimates
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Rogers Communications (RCI - Free Report) reported fourth-quarter 2024 adjusted earnings of $1.04 per share, which beat the Zacks Consensus Estimate by 9.47% and increased 19.54% year over year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Revenues of $3.92 billion beat the consensus mark by 4.08% and declined 0.03% year over year.
In domestic currency (Canadian dollar), adjusted earnings increased 23% year over year to C$1.46 per share. Total revenues increased 3% year over year, reaching C$5.48 billion, driven primarily by revenue growth in media businesses.
Rogers Communication, Inc. Price, Consensus and EPS Surprise
Wireless revenues (54.4% of total revenues) increased 3.9% year over year to C$2.98 billion. Service revenues rose 1.9% to C$2.06 billion. Equipment revenues increased 8.8% to C$923 million.
Monthly mobile phone ARPU was C$58.04, up 0.14% year over year.
As of Dec. 31, 2024, the prepaid subscriber base totaled 1.106 million, representing a loss of 5K subscribers year over year. The monthly churn rate was 2.8% compared with 6.2% reported in the year-ago quarter.
As of Dec. 31, 2024, the postpaid wireless subscriber base totaled 10.77 million, representing net additions of 270K subscribers year over year. The monthly churn rate was 1.53% compared with 1.67% in the year-ago quarter.
Segment operating expenses rose 2% year over year to C$1.61 billion.
Adjusted EBITDA increased 5.89% year over year to C$1.37 billion. Adjusted EBITDA margin expanded 90 basis points (bps) on a year-over-year basis to 45.9%.
Cable Details
Cable revenues (36.2% of total revenues) increased 0.1% year over year to C$1.98 billion due to a decrease in the Home Phone and Satellite subscriber base.
Service revenues rose 0.2% year over year to C$1.97 billion. Equipment revenues decreased 11.8% on a year-over-year basis to C$15 million.
As of Dec. 31, 2024, the retail Internet subscriber count was nearly 4.273 million, representing a net increase of 111K subscribers year over year.
As of Dec. 31, 2024, total Smart Home Monitoring subscribers reached 133K, indicating an increase of 44K subscribers. The total Home Phone subscriber count was nearly 1.51 million, reflecting a loss of 122K customers in the reported quarter.
ARPA was C$140.31, lower than the C$141.96 reported in the year-ago quarter.
Segment operating expenses declined 6.5% year over year to C$814 million.
Adjusted EBITDA increased 5.22% year over year to C$1.17 billion.
Media Details
Media revenues (11.2% of total revenues) increased 10.4% year over year to C$616 million due to higher sports-related revenues, driven by higher subscriber revenues and higher revenues at the Taylor Swift Eras Tour and Toronto concerts hosted at Rogers Center.
Segment operating expenses increased 1.6% year over year to C$563 million.
The segment reported an adjusted EBITDA of $53 million, significantly up year over year due to higher revenues and expense changes.
Consolidated Results
Operating costs declined 0.37% to C$2.99 billion. As a percentage of revenues, operating costs were 54.6%.
Adjusted EBITDA rose 7.61% year over year to C$2.59 billion. Adjusted EBITDA margin expanded 210 bps to 47.2%.
Balance Sheet & Cash Flow Details
As of Dec. 31, 2024, Rogers had C$4.8 billion of available liquidity, including $0.9 billion in cash and cash equivalents and a combined C$3.5 billion available under the bank credit facility. In comparison, RCI had C$4.8 billion of available liquidity as of Sept. 30, 2024, including $0.8 billion in cash and cash equivalents and a combined C$4 billion available under the bank credit facility.
Rogers’ debt leverage ratio was 4.5 times as of Dec. 31, 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$1.14 billion compared with C$1.89 billion generated in the previous quarter. Free cash flow was C$878 million compared with C$915 million generated in the previous quarter.
Rogers paid dividends worth C$267 million and declared a C$0.50 per share dividend.
2025 Guidance
For 2025, Rogers expects total service revenues to grow between 0-3%. Adjusted EBITDA is expected to grow in the range of 0-3%.
Capital expenditure is expected to be between C$3.8 billion and C$4 billion. Free cash flow is expected in the range of C$3-C$3.2 billion.
Rogers Communications’ Zacks Rank & Stocks to Consider
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Rogers Communications' Q4 Earnings and Revenues Beat Estimates
Rogers Communications (RCI - Free Report) reported fourth-quarter 2024 adjusted earnings of $1.04 per share, which beat the Zacks Consensus Estimate by 9.47% and increased 19.54% year over year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Revenues of $3.92 billion beat the consensus mark by 4.08% and declined 0.03% year over year.
In domestic currency (Canadian dollar), adjusted earnings increased 23% year over year to C$1.46 per share. Total revenues increased 3% year over year, reaching C$5.48 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 (54.4% of total revenues) increased 3.9% year over year to C$2.98 billion. Service revenues rose 1.9% to C$2.06 billion. Equipment revenues increased 8.8% to C$923 million.
Monthly mobile phone ARPU was C$58.04, up 0.14% year over year.
As of Dec. 31, 2024, the prepaid subscriber base totaled 1.106 million, representing a loss of 5K subscribers year over year. The monthly churn rate was 2.8% compared with 6.2% reported in the year-ago quarter.
As of Dec. 31, 2024, the postpaid wireless subscriber base totaled 10.77 million, representing net additions of 270K subscribers year over year. The monthly churn rate was 1.53% compared with 1.67% in the year-ago quarter.
Segment operating expenses rose 2% year over year to C$1.61 billion.
Adjusted EBITDA increased 5.89% year over year to C$1.37 billion. Adjusted EBITDA margin expanded 90 basis points (bps) on a year-over-year basis to 45.9%.
Cable Details
Cable revenues (36.2% of total revenues) increased 0.1% year over year to C$1.98 billion due to a decrease in the Home Phone and Satellite subscriber base.
Service revenues rose 0.2% year over year to C$1.97 billion. Equipment revenues decreased 11.8% on a year-over-year basis to C$15 million.
As of Dec. 31, 2024, the retail Internet subscriber count was nearly 4.273 million, representing a net increase of 111K subscribers year over year.
As of Dec. 31, 2024, total Smart Home Monitoring subscribers reached 133K, indicating an increase of 44K subscribers. The total Home Phone subscriber count was nearly 1.51 million, reflecting a loss of 122K customers in the reported quarter.
ARPA was C$140.31, lower than the C$141.96 reported in the year-ago quarter.
Segment operating expenses declined 6.5% year over year to C$814 million.
Adjusted EBITDA increased 5.22% year over year to C$1.17 billion.
Media Details
Media revenues (11.2% of total revenues) increased 10.4% year over year to C$616 million due to higher sports-related revenues, driven by higher subscriber revenues and higher revenues at the Taylor Swift Eras Tour and Toronto concerts hosted at Rogers Center.
Segment operating expenses increased 1.6% year over year to C$563 million.
The segment reported an adjusted EBITDA of $53 million, significantly up year over year due to higher revenues and expense changes.
Consolidated Results
Operating costs declined 0.37% to C$2.99 billion. As a percentage of revenues, operating costs were 54.6%.
Adjusted EBITDA rose 7.61% year over year to C$2.59 billion. Adjusted EBITDA margin expanded 210 bps to 47.2%.
Balance Sheet & Cash Flow Details
As of Dec. 31, 2024, Rogers had C$4.8 billion of available liquidity, including $0.9 billion in cash and cash equivalents and a combined C$3.5 billion available under the bank credit facility. In comparison, RCI had C$4.8 billion of available liquidity as of Sept. 30, 2024, including $0.8 billion in cash and cash equivalents and a combined C$4 billion available under the bank credit facility.
Rogers’ debt leverage ratio was 4.5 times as of Dec. 31, 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$1.14 billion compared with C$1.89 billion generated in the previous quarter. Free cash flow was C$878 million compared with C$915 million generated in the previous quarter.
Rogers paid dividends worth C$267 million and declared a C$0.50 per share dividend.
2025 Guidance
For 2025, Rogers expects total service revenues to grow between 0-3%. Adjusted EBITDA is expected to grow in the range of 0-3%.
Capital expenditure is expected to be between C$3.8 billion and C$4 billion. Free cash flow is expected in the range of C$3-C$3.2 billion.
Rogers Communications’ Zacks Rank & Stocks to Consider
Currently, RCI carries a Zacks Rank #4 (Sell).
Akamai Technologies (AKAM - Free Report) , AMETEK (AME - Free Report) and DoorDash (DASH - Free Report) are some better-ranked stocks that investors can consider in the broader sector. AKAM, AME and DASH carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Akamai Technologies shares have lost 18.2% in the trailing 12 months. AKAM is set to report its fourth-quarter 2024 results on Feb. 20.
AMETEK shares have gained 12.1% in the trailing 12 months. AME is set to report its fourth-quarter 2024 results on Feb. 4.
DoorDash shares have surged 75.8% in the trailing 12 months. DASH is set to report its fourth-quarter 2024 results on Feb. 11.