Rogers Communications 4Q Profit Slides, Revenue Beats Views
By Adriano Marchese
Rogers Communications reported on Thursday lower profit, but better-than-expected revenue in the fourth quarter as new customers were onboarded and as its integration of Shaw Communications pushed ahead.
The Canadian telecommunication major said net income fell to 328 million Canadian dollars ($244.1 million), or C$0.62 a share, from C$508 million, or C$1 a share, in the prior-year quarter.
Rogers said the decline was primarily due to higher depreciation and amortization associated with assets acquired through the Shaw transaction and higher restructuring and acquisition costs.
On an adjusted basis, which strips out one-off and exceptional items, earnings rose to C$1.19 a share. According to FactSet, analysts were expecting C$1.12 a share.
Revenue in the quarter rose to C$5.34 billion from C$4.17 billion, beating analyst expectations of a rise to C$5.28 billion. Rogers benefited from a 30% rise in service revenue, which reached C$4.47 billion in the quarter.
Wireless service revenue rose by 9%, with postpaid mobile phone additions of 184,000, while cable service revenue rose 94% thanks largely to the addition of Shaw Communications to its network.
Rogers said that savings from the Shaw acquisition continue ahead of plan, which have now reached C$375 million since closing in late March, when the C$20.5 billion takeover cleared its final hurdle with Ottawa's approval of a key license transfer.
For 2024, it expects total service revenue to rise by between 8% and 10%, with adjusted Ebitda growth of 12% to 15%.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
February 01, 2024 07:49 ET (12:49 GMT)
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