Feb 2, 2023
Rogers Communications Profit Tops Estimates as Wireless Unit Drives Growth
(Bloomberg) -- Rogers Communications Inc., Canada’s largest wireless provider, reported fourth-quarter profit that topped analysts’ estimates as an increase in subscribers boosted revenue in its largest unit.
- Profit excluding some items was C$1.09 a share. Analysts estimated 98 cents, on average.
- The company expects this year’s service revenue to increase 4% to 7% over 2022 levels, excluding any benefit from the potential acquisition of Shaw Communications Inc.
- The company’s wireless unit, its most important business, added a better-than-expected 193,000 postpaid subscribers. The division recorded revenue of C$2.58 billion, exceeding analysts’ projections for C$2.5 billion.
- The cable division continued to suffer slow growth, with its total customer relationships increasing 0.3% from a year earlier. The unit’s revenue fell 0.4% as it lost cable television subscribers.
- The media business saw a 17% sales increase over the previous year, due into higher revenue from its Sportsnet channel and the Toronto Blue Jays baseball club.
- Rogers is in the final stages of trying to finish its C$20 billion takeover of Shaw. The companies pushed the deadline to close to Feb. 17 while they await a final ruling from Industry Minister Francois-Philippe Champagne.
- Rogers shares have risen 2% this year in Toronto as of Wednesday’s close, underperforming rivals BCE Inc. and Telus Corp. and the S&P/TSX Composite Index’s 7% gain.
- Click here for the company’s statement.
(Updates with service revenue forecast in second bullet point)
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