Hansen, Mueller Industries director, sells $105,710 in stock
TORONTO - On Thursday, Rogers Communications Inc. (NYSE:RCI) reported third-quarter earnings that surpassed analyst expectations.
The company’s shares rose 1.77% in pre-market trading following the announcement.
The Canadian telecommunications giant posted adjusted earnings per share of C$1.37, significantly beating the analyst estimate of C$0.90. Revenue for the quarter reached C$5.35 billion, well above the consensus estimate of C$3.83 billion and up 4% compared to the same quarter last year.
Rogers delivered industry-leading combined mobile phone and Internet subscriber growth in the quarter, adding 111,000 total mobile phone subscribers (62,000 postpaid and 49,000 prepaid) and 29,000 retail Internet customers. The company also reported its best wireless customer loyalty in over two years, with postpaid churn improving to 0.99%, down 13 basis points.
"In the third quarter, we delivered industry-leading combined Wireless and Internet subscriber growth, underpinned by our lowest churn in over two years and healthy margins in Wireless and Cable," said Tony Staffieri, President and CEO. "Our media and sports business also drove strong double-digit revenue growth, highlighting our world-class assets and the opportunity to unlock value for shareholders."
The Media segment saw significant growth with revenue increasing 26% YoY to C$753 million, driven by the acquisition of a controlling stake in Maple Leaf Sports & Entertainment Ltd. (MLSE) and strong Toronto Blue Jays performance. Wireless service revenue remained flat at C$2.1 billion, while Cable revenue increased 1% to C$2 billion.
Rogers maintained strong margins in its core businesses, with Wireless adjusted EBITDA margin at 67% and Cable adjusted EBITDA margin at 58%. Overall adjusted EBITDA was C$2.52 billion, slightly below last year’s C$2.55 billion, primarily due to seasonal results from MLSE.
The company reaffirmed its 2025 outlook for total service revenue growth of 3% to 5% and adjusted EBITDA growth of 0% to 3%, while updating its capital expenditure forecast to C$3.7 billion and free cash flow guidance to C$3.2-3.3 billion.
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