Rogers Earnings: Performance Remains Good While Integrating Shaw; Profit Guidance Raised

After Rogers Communications acquired Shaw’s cable business and a small subset of its wireless customers on April 3, its recent trend of strong performance seems to have continued unabated in the second quarter. Wireless customer growth was the standout metric yet again, and cable revenue continued to muddle along with a stable subscriber base. By all accounts, the Shaw integration is off to a strong start, with management reaffirming its long-term synergy expectations and slightly raising its 2023 EBITDA and cash flow targets on the back of this. We are maintaining our CAD 75 fair value estimate and think the stock is attractive.