Q2 2024 Rogers Communications Inc Earnings Call Transcript
Key Points
- Rogers Communications Inc (RCI) reported a 4% increase in wireless service revenue and a 6% rise in adjusted EBITDA for Q2 2024.
- The company achieved industry-leading wireless margins of 65% and added 162,000 mobile phone net additions, including 112,000 postpaid and 50,000 prepaid.
- Rogers' 5G network was recognized as Canada's most reliable by Umlaut and OpenSignal, reinforcing its network leadership.
- Cable adjusted EBITDA grew by 9%, with cable margins expanding to 57%, reflecting strong operational efficiency.
- The media segment saw a 7% revenue increase, driven by the Toronto Blue Jays, and is expected to return to profitability in the second half of the year.
- Cable revenue declined by 2% in Q2 2024, although this was a slight improvement from the 3% decline in Q1.
- Postpaid mobile phone churn increased by 20 basis points year-over-year to 1.07%, indicating some customer retention challenges.
- The company faces ongoing competitive pressures in both the wireless and cable markets, which could impact future growth.
- Rogers' debt leverage ratio remained high at 4.7 times, with a target to reduce it to 4.2 times by year-end.
- The sale of non-core assets, including real estate worth an estimated $1 billion, is taking longer than anticipated due to market softness.
Thank you for standing by. This is the conference operator and welcome to the Rogers Communications Inc. second-quarter 2024 results conference call. (Operator Instructions)
I would now like to turn the conference over to David Naccarato, Director of Investor Relations with Rogers Communications. Please go ahead, Mr. Naccarato.
Thanks, Kayleen, and good morning, everyone, and thank you for joining us. Today, I'm here with our President and Chief Executive Officer, Tony Staffieri; and our Chief Financial Officer, Glenn Brandt.
Today's discussion will include estimates and other forward-looking information from which our actual results could differ. Please review the cautionary language in today's earnings report and in our 2023 Annual Report regarding the various factors, assumptions, and risks that could cause our actual results to differ.
With that, let me turn it over to Tony to begin.
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