Rogers Communication Boasts 6% Revenue Spike In Q4 Backed By Postpaid Subscriptions
$RCI
$SJR
Cable & Other Pay Television Services
Telecommunications
- Rogers Communication, Inc (NYSE:RCI) reported fourth-quarter FY22 revenue growth of 6% year-on-year to C$4.17 billion. Service revenue grew 6% Y/Y to C$3.44 billion.
- Rogers attracted 193,000 net postpaid mobile phone subscribers, up from 52,000 last year, with a churn of 1.24%.
- Wireless service revenue increased by 7% Y/Y, mainly due to higher roaming revenue.
- Cable service revenue was stable Y/Y due to increased competitive promotional activity.
- Media revenue increased by 17% Y/Y due to higher sports-related revenue.
- Adjusted EPS of C$1.09 improved by 14% from C$0.96 last year.
- Margin: Adjusted EBITDA margin expanded 150 bps to 40.3%, primarily due to Wireless and Media adjusted EBITDA increases.
- Rogers generated C$635 million in free cash flow, up 36%. It held C$0.5 billion in cash and equivalents. It also had C$12.8 billion in restricted cash and equivalents that will partially fund the cash consideration of the Shaw Communications Inc (NYSE:SJR) transaction.
- FY23 Outlook: Toronto-based Rogers expects a service revenue growth outlook of 4% to 7% and adjusted EBITDA growth of 5% to 8%.
- Price Action: RCI shares closed higher by 0.06% at $48.68 on Wednesday.