Yahoo Finance Rogers Communications (RCI) Q1 Earnings Beat, Revenues Rise Y/Y
Rogers Communications RCI reported first-quarter 2024 adjusted earnings of 73 cents per share, which beat the Zacks Consensus Estimate by 1.39% but decreased 9.9% year over year.
Revenues of $3.6 billion missed the consensus mark by 0.05% but jumped 28.2% year over year.
In domestic currency (Canadian dollar), adjusted earnings decreased 9.2% year over year to 99 cents per share. Total revenues increased 27.8% year over year, reaching C$4.9 billion, driven primarily by revenue growth in Wireless and Cable 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 (51.6% of total revenues) increased 7.8% year over year to C$2.53 billion. Service revenues increased 8.7% to C$1.99 billion. Equipment revenues were up 4.3% to C$532 million.
Wireless service revenues benefited from growth in the mobile phone subscriber base, revenues from Shaw Mobile subscribers acquired through the Shaw transaction (completed on Apr 3, 2023) and the positive impact of the July 2022 network outage-related credits.
Monthly mobile phone ARPU was C$58.06, up 1.4% year over year.
As of Mar 31, 2024, the prepaid subscriber base totaled 1.018 million, reflecting a loss of 37K subscribers compared with 8K lost in the year-ago quarter. The monthly churn rate was 3.9% compared with 5.96% reported in the year-ago quarter.
As of Mar 31, 2024, the postpaid wireless subscriber base totaled 10.48 million, reflecting net additions of 98K compared with 95K in the year-ago quarter. The monthly churn rate was 1.08% compared with 0.79% in the year-ago quarter.
Segment operating expenses increased 6.6% year over year to C$1.24 billion.
Adjusted EBITDA increased 8.9% year over year to C$1.28 billion. Adjusted EBITDA margin expanded 50 basis points (bps) on a year-over-year basis to 50.8%.
Cable Details
Cable revenues (40% of total revenues) surged 92.6% year over year to C$1.96 billion.
Service revenues jumped 93.5% year over year to C$1.947 billion. Equipment revenues increased 9.1% on a year-over-year basis to C$12 million.
As of Mar 31, 2024, the retail Internet subscriber count was nearly 4.188 million, reflecting net additions of 26K compared with 14K in the year-ago quarter.
As of Mar 31, 2024, total Smart Home Monitoring subscribers reached 88K, highlighting a loss of 1K subscribers. The total Home Phone subscriber count was nearly 1.594 million, reflecting a loss of 35K customers in the reported quarter.
ARPA was C$140.1, higher than the C$129.58 reported in the year-ago quarter.
Segment operating expenses surged 86.7% year over year to C$859 million.
Adjusted EBITDA soared 97.5% year over year to C$1.1 billion.
Media Details
Media revenues (9.8% of total revenues) decreased 5.1% year over year to C$479 million, primarily attributed to lower subscriber revenues due to the negotiation of certain content rates in the prior year.
Segment operating expenses decreased 5.1% year over year to C$479 million.
Adjusted EBITDA was negative C$103 million, which plunged 171.1% year over year due to lower revenues.
Consolidated Results
Operating costs increased 23% to C$2.687 billion. As a percentage of revenues, operating costs contracted 210 bps to 54.8%.
Adjusted EBITDA jumped 34.1% year over year to C$2.21 billion. Adjusted EBITDA margin expanded 210 bps to 45.2%.
Balance Sheet & Cash Flow Details
As of Mar 31, 2024, RCI had C$4.6 billion of available liquidity, including $0.8 billion in cash and cash equivalents and a combined C$3.8 billion available under the bank credit facility.
As of Dec 31, 2023, Rogers Communications had C$5.9 billion of available liquidity, including $0.8 billion in cash and cash equivalents and a combined C$5.1 billion available under the bank credit facility.
The company’s debt leverage ratio decreased to 4.7 times as of Mar 31, 2024, which has remained constant since the previous quarter.
Cash flow from operating activities was C$1.18 billion compared with C$1.37 billion generated in the previous quarter. Free cash flow was C$586 million compared with C$823 million generated in the previous quarter.
Rogers Communications paid dividends worth C$265 million and declared a C$0.50 per share dividend.
Guidance
For 2024, RCI expects total service revenues to grow between 8% and 10%. Adjusted EBITDA is expected to grow in the range of 12-15%.
Capital expenditure is still expected to be between C$3.80 billion and C$4 billion. Free cash flow is expected to be in the range of C$2.9-C$3.1 billion.
Zacks Rank & Stocks to Consider
RCI currently carries a Zacks Rank #4 (Sell).
Disney DIS, Electronic Arts EA and Roblox RBLX are some better-ranked stocks that investors can consider in the broader sector. DIS, EA and RBLX 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.
Shares of Disney have gained 26.2% year to date. DIS is set to report its second-quarter fiscal 2024 results on May 7.
Shares of Electronic Arts have lost 6.3% year to date. EA is slated to report its fourth-quarter fiscal 2024 results on May 7.
Shares of Roblox Limited have lost 23.5% year to date. RBLX is set to report its first-quarter 2024 results on May 9.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Rogers Communication, Inc. (RCI) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
Electronic Arts Inc. (EA) : Free Stock Analysis Report
Roblox Corporation (RBLX) : Free Stock Analysis Report
