Rogers releases Q1 results, announces 10-year deal with Comcast

Following the release of its first quarter results of 2024, Rogers Communications Inc. announced it has signed a 10-year agreement with Comcast Corp. to bring the American media company’s Xfinity broadband, smart home, and entertainment products to Canada. New products and technologies from the deal include the Entertainment OS platform, which will make customers’ streaming apps accessible from one platform; network gateways said to deliver multi-gigabit speeds; home security hardware, including sensors and on-demand emergency dispatch; and Storm-Ready WiFi, which will maintain a cellular internet connection during power outages. “Canadians want to be connected to the best entertainment, anywhere, without interruption and we’re proud to partner with Comcast to make this a reality,” said Rogers CEO Tony Staffieri in a press release. Wednesday morning, the company shared its quarterly results for the three months ended March 31. Despite revenue increases of 28 per cent, the telecom giant faced a 50 per cent drop in profits compared to the year prior. Total revenue climbed to $4.9 billion from last year’s $3.84 billion, which Rogers attributed to growth in its mobile phone subscriber base, as well as a 93 per cent revenue surge in its cable division from customers acquired through the Shaw transaction. Cable revenues increased to $1.96 billion from last year’s $1.02 billion. Wireless revenues were up eight per cent, reaching $2.53 billion from $2.35 billion. Adjusted EBITDA for the quarter stood at $2.21 billion, marking a 34 per cent increase from $1.65 billion year-over-year. The company attributed this growth to enhanced operational efficiencies and its integration with Shaw. In stark contrast to the operational gains reported, net income fell to $256 million from $511 million year-over-year. However, Rogers noted this 50 per cent decline was due primarily to higher depreciation, amortization, and finance costs related to the Shaw acquisition. Staffieri added that Rogers is ahead of schedule in its cost synergy plan with Shaw. “We exited the first quarter having achieved our full $1 billion cost synergy target run-rate within 12 months from acquisition, rather than the original 24-month target,” he explained to financial analysts during a conference call. Rogers' wireless division experienced substantial customer growth in its postpaid mobile phone segment and a decrease in its prepaid segment. Wireless average revenue per user (ARPU) also saw growth, rising from $57.26 in Q1 2023 to $58.06 in Q1 2024. Total postpaid mobile phone subscribers reached 10.49 million, marking an increase of one million subscribers year-over-year. However, the churn rate rose to 1.1 per cent from 0.79 per cent, indicating a slight increase in customer turnover. In contrast, total prepaid mobile phone subscribers dropped by 229,000 to 1.02 million year-over-year, with a reduced churn rate of 3.9 per cent from 5.96 per cent. The telecom’s cable division showed growth across its various services. Average revenue per account (ARPA) rose to $140.10 this quarter, up from $129.58 last year. Retail internet subscribers surged to 4.19 million this quarter, an increase of 1.89 million year-over-year. Video subscribers similarly increased to 2.72 million, an increase of 1.21 million year-over-year. Home phone subscribers grew to 1.59 million, up by 771,000 year-over-year. Smart home monitoring was the only cable category to witness a decline, with subscribers dropping to 88,000, an eight per cent decrease from 96,000 year-over-year. "We continued to deliver industry-leading growth in the first quarter, our ninth straight quarter of growth and momentum,” said Staffieri in a press release. “At the one-year milestone of the Shaw merger, more Canadians continue to choose Rogers than any other carrier and we're one year ahead of our synergy targets. I am proud of our team and I remain confident in our future.” – Reporting by Phalen Tynes- MacDonald at pcreed@thewirereport.ca

Rogers releases Q1 results, announces 10-year deal with Comcast

Broadcast | April 24, 2024

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Rogers releases Q1 results, announces 10-year deal with Comcast

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