Benzinga - by Akanksha Bakshi, Benzinga Editor.
Rogers Communications Inc (NYSE: RCI) reported third-quarter (Q3) revenue growth of 36% year-over-year to C$5.09 billion (US$3.6 billion).
Total service revenue grew 40% Y/Y to C$4.53 billion on higher revenue growth in the Cable and Wireless businesses.
Wireless service revenue increased by 15% Y/Y, mainly aided by the cumulative impact of growth in the mobile phone subscriber base and revenue from Shaw Mobile subscribers.
Cable service revenue rose 105% Y/Y, aided by the acquisition of Shaw and the impact of the July 2022 network outage-related credits.
Media revenue increased by 11% Y/Y, led by higher sports-related revenue.
Rogers attracted 225,000 net postpaid mobile phone subscribers, up 61% Y/Y, with a churn of 1.08%.
Adjusted EBITDA increased 52% Y/Y to C$2.41 billion, with margins increasing 560 bps to 47.4%, led by improving synergies and efficiencies and the network outage-related credits issued to customers last year.
Q3 Adjusted EPS of C$1.27 improved by 51% Y/Y.
Rogers generated C$745 million in free cash flow for the quarter, up 167% Y/Y.
It held C$2.53 billion in cash and cash equivalents. Capital expenditure rose 17% Y/Y to C$1.02 billion.
Dividend: The company declared a quarterly dividend of 50 cents on each of its outstanding Class B Non-Voting shares and Class A Voting shares on Jan. 2, 2024, to shareholders of record on Dec. 8, 2023.
FY23 Outlook, reaffirmed: The company expects adjusted EBITDA growth of 33%-36% and free cash flow to be at the upper end of C$2.20 billion-C$2.50 billion.
RCI sees service revenue growth at 26%-30% and capital expenditure at C$3.70 billion-C$3.90 billion.
Price Action: RCI shares are trading higher by 4.03% at $41.73 on the last check Thursday
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