Q3 2024 Rogers Communications Inc Earnings Call Transcript
Key Points
- Rogers Communications Inc (RCI) reported strong financial performance for the 11th consecutive quarter, with industry-leading results in wireless market share and margins.
- The company announced a $7 billion structured equity financing deal to pay down debt, which is expected to reduce the debt leverage ratio to 3.7 times by year-end, ahead of the previously communicated target.
- RCI achieved record mobile phone and internet net additions, with 227,000 new subscribers in the third quarter, contributing to a total of 1.9 million additions over the past 11 quarters.
- The company reported strong growth in its sports and media business, with revenue growth of 11% and adjusted EBITA up 25% for the quarter.
- RCI's network leadership was reaffirmed by global benchmarking studies, recognizing it for delivering Canada's most reliable 5G network and fastest internet services.
- The competitive market environment, particularly during the back-to-school period, posed challenges, although RCI managed to maintain stable ARPU.
- Roaming revenue declined year-on-year, impacting overall wireless revenue growth.
- The company's prepaid segment is expected to see a seasonal decline in the fourth quarter, which may affect overall subscriber growth.
- RCI's cable revenue was down 1% year-over-year, although it showed sequential improvement.
- The structured equity financing deal, while innovative, involves complex financial arrangements that may raise concerns about future cash flow impacts.
Thank you for standing by. This is the conference operator. Welcome to the Rogers Communications Inc third quarter, 2024 results conference call. (Operator Instructions). I would now like to turn the conference over to Paul Carpino, Vice President of Investor Relations with Rogers Communications. Please go ahead Mr Carpino.
:
Thank you [Gayn] 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. During our Q&A I'd ask you to limit yourself to one question and a quick follow up if needed. 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 M DNA 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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