Rogers Communications Reports Lower Profit, but Better-Than-Expected Revenue in Q4

Rogers Communications, a major Canadian telecommunications company, announced its financial results for the fourth quarter on Thursday. Despite a decrease in profit, the company exceeded revenue expectations, primarily due to the addition of new customers and the successful integration of Shaw Communications.

Financial Details

• Net income declined to 328 million Canadian dollars ($244.1 million), or C$0.62 a share, compared to C$508 million, or C$1 a share, in the same quarter of the previous year. The decline was mainly attributed to higher depreciation and amortization linked to assets acquired through the Shaw transaction, as well as increased restructuring and acquisition costs.
• Adjusted earnings, which exclude one-off and exceptional items, rose to C$1.19 a share, surpassing analysts' expectations of C$1.12 a share.
• Revenue for the quarter increased to C$5.34 billion from C$4.17 billion, exceeding analyst predictions of C$5.28 billion. The company experienced a significant boost in service revenue, which reached C$4.47 billion, a 30% rise compared to the previous year.
• Wireless service revenue grew by 9%, driven by the addition of 184,000 postpaid mobile phone customers. Cable service revenue witnessed an impressive 94% increase, largely due to the incorporation of Shaw Communications into Rogers' network.

Successes and Future Growth

Rogers' acquisition of Shaw Communications has resulted in substantial cost savings, surpassing expectations. The company has saved C$375 million since the transaction's completion in late March. This positive outcome is attributed to the approval of a key license transfer by the Canadian government, which cleared the way for the C$20.5 billion takeover.

Looking ahead, Rogers Communications has optimistic projections for 2024. The company anticipates a growth in total service revenue by 8% to 10%. Additionally, it expects adjusted EBITDA to increase by 12% to 15%.