Rogers Communications Logs Loss, Shaw Integration Drives Revenue Beat

By Adriano Marchese

Rogers Communications swung to a loss in the third quarter as financing and restructuring costs mounted, while revenue topped expectations thanks to the integration of Shaw into the business.

The Canadian telecom giant on Thursday reported a loss of 99 million Canadian dollars ($71.8 million), or a loss of C$0.20 a share, compared with a profit of C$371 million, or C$0.71 a share in the prior-year period.

Rogers said that it booked higher depreciation and amortization, as well as higher finance and restructuring costs related to its acquisition of Shaw Communications. It also booked a loss of C$422 million on obligation to purchase at fair value the non-controlling interest in one of its joint-venture investments.

On an adjusted basis, which excludes one-off costs and items, earnings rose to C$1.27 a share. According to FactSet, analysts were expecting a more modest rise to C$1.11 a share.

Total revenue rose to C$5.09 billion from C$3.74 billion, beating analyst expectations of a rise to C$5.07 billion.

Rogers said that mobile phone and internet additions were of 279,000 in the period, up 52,000 from last year at this time, of which 261,000 were new mobile phone connections. The company said that internet net loading was of 18,000, up 12,000 year-over-year thanks to growth in both eastern and western Canada.

In late March, Rogers' C$20.5 billion takeover of Shaw cleared its final hurdle with Ottawa's approval of a key license transfer.

Chief Executive Tony Staffieri said that it is tracking ahead of synergy targets and deleveraging plans six months into the integration process.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

November 09, 2023 07:40 ET (12:40 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.