Rogers Communications Inc

RCI.B

Equity

ISIN CA7751092007 / Valor 699136

Toronto Stock Exchange (2024-09-17)

CAD 55.49-0.23%

Rogers Communications Inc
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About company

Rogers Communications Inc. is a prominent Canadian telecommunications and media company that has been operational for over 60 years. Founded by Ted Rogers, the company started with the acquisition of a radio station and has since grown into a national service provider, connecting Canadians across the country. Rogers Communications offers a wide range of services including cable television, high-speed internet, wireless communications, and media broadcasting. The company is known for its commitment to innovation, unique partnerships, and providing content that resonates with Canadians. With a focus on building a world-class network, Rogers aims to deliver superior connectivity and entertainment solutions to its customers, while also ensuring long-term business success for the benefit of its customers, employees, and shareholders.

Summarized from source with an LLMView SourceSector: Technology

Revenue Growth

Rogers Communications Inc. reported a 1% increase in total revenue for the second quarter of 2024, reaching $5,093 million. This growth was driven by a 4% increase in wireless service revenue, attributed to the cumulative impact of growth in the mobile phone subscriber base over the past year. However, wireless equipment revenue saw a 5% decline due to fewer device upgrades by existing customers.

Adjusted EBITDA and Margins

Consolidated adjusted EBITDA for Rogers Communications Inc. increased by 6% in Q2 2024, with an adjusted EBITDA margin rising by 230 basis points. This improvement was largely due to the full realization of the synergy program associated with the Shaw Transaction and ongoing cost efficiencies. Wireless adjusted EBITDA also increased by 6%, resulting in a margin of 65.2%, while Cable adjusted EBITDA rose by 9%, achieving a margin of 56.8%.

Net Income

Rogers Communications Inc. saw a significant increase in net income for the second quarter of 2024, rising by $285 million or 261%. Adjusted net income also increased by 15%, primarily due to higher adjusted EBITDA and lower restructuring, acquisition, and other costs compared to the previous year. The higher net income was partially offset by increased income tax expenses.

Cash Flow and Liquidity

In Q2 2024, Rogers Communications Inc. generated $1,472 million in cash provided by operating activities, a decrease from $1,635 million in the same quarter of 2023. The decline was mainly due to greater investment in net operating assets and liabilities. However, free cash flow increased by 40% to $666 million, driven by higher adjusted EBITDA, lower capital expenditures, and reduced interest on long-term debt. The company had $4.3 billion in available liquidity as of June 30, 2024.

Dividends and Financial Outlook

Rogers Communications Inc. returned $266 million in dividends to shareholders in the second quarter of 2024 and declared a $0.50 per share dividend on July 23, 2024. The company reaffirmed its 2024 outlook, projecting total service revenue growth of 8% to 10%, adjusted EBITDA growth of 12% to 15%, capital expenditures between $3.8 billion and $4.0 billion, and free cash flow ranging from $2.9 billion to $3.1 billion.

Summarized from source with an LLMView Source

Key figures

-1.40%1Y

-7.19%3Y

-17.5%5Y

Performance

17.7%1Y

19.3%3Y

24.7%5Y

Volatility