Rogers Communications Reports Second Quarter 2024 Results
Rogers Communications (TSX: RCI.A and RCI.B; NYSE: RCI) reported strong Q2 2024 results, with total service revenue up 1% and adjusted EBITDA up 6%. The company added 188,000 mobile phone and Internet net additions in Q2, leading the industry. Wireless service revenue increased 4% with a 65% margin, while Cable adjusted EBITDA grew 9% with a 57% margin. Despite significant investments, leverage remained steady at 4.7.
Rogers reaffirmed its 2024 outlook, projecting total service revenue growth of 8-10%, adjusted EBITDA growth of 12-15%, capital expenditures of $3.8-4.0 billion, and free cash flow of $2.9-3.1 billion. The company continues to focus on network expansion, product innovation, and customer acquisition to drive growth and shareholder value.
Rogers Communications (TSX: RCI.A e RCI.B; NYSE: RCI) ha riportato risultati forti per il secondo trimestre del 2024, con un incremento del fatturato totale dei servizi dell'1% e un aumento dell'EBITDA rettificato del 6%. L'azienda ha registrato 188.000 nuove aggiunte netti di telefoni mobili e Internet nel secondo trimestre, conducendo il settore. I ricavi dei servizi wireless sono aumentati del 4% con un margine del 65%, mentre l'EBITDA rettificato da cablaggio è cresciuto del 9% con un margine del 57%. Nonostante significativi investimenti, il rapporto di indebitamento è rimasto stabile a 4.7.
Rogers ha riaffermato le sue prospettive per il 2024, prevedendo una crescita del fatturato totale dei servizi dell'8-10%, una crescita dell'EBITDA rettificato del 12-15%, spese in conto capitale di 3.8-4.0 miliardi di dollari e un flusso di cassa libero di 2.9-3.1 miliardi di dollari. L'azienda continua a concentrarsi sull'espansione della rete, sull'innovazione dei prodotti e sull'acquisizione di clienti per alimentare la crescita e il valore per gli azionisti.
Rogers Communications (TSX: RCI.A y RCI.B; NYSE: RCI) reportó resultados sólidos para el segundo trimestre de 2024, con un aumento del 1% en los ingresos totales por servicios y un aumento del 6% en el EBITDA ajustado. La compañía agregó 188,000 nuevos clientes de telefonía móvil e Internet en el segundo trimestre, liderando la industria. Los ingresos por servicios inalámbricos crecieron un 4% con un margen del 65%, mientras que el EBITDA ajustado de cable creció un 9% con un margen del 57%. A pesar de las inversiones significativas, el apalancamiento se mantuvo estable en 4.7.
Rogers reafirmó su perspectiva para 2024, proyectando un crecimiento en los ingresos totales por servicios del 8-10%, un crecimiento del EBITDA ajustado del 12-15%, gastos de capital de 3.8-4.0 mil millones de dólares y un flujo de caja libre de 2.9-3.1 mil millones de dólares. La compañía sigue enfocándose en la expansión de la red, la innovación de productos y la adquisición de clientes para impulsar el crecimiento y el valor para los accionistas.
로저스 커뮤니케이션즈 (TSX: RCI.A 및 RCI.B; NYSE: RCI)는 2024년 2분기 강력한 실적을 보고하며, 총 서비스 수익이 1% 증가하고 조정 EBITDA가 6% 증가했다고 발표했습니다. 회사는 2분기에 188,000명의 모바일 및 인터넷 순 추가 고객을 기록하며 산업을 선도했습니다. 무선 서비스 수익은 65%의 마진으로 4% 증가했으며, 케이블의 조정 EBITDA는 57%의 마진으로 9% 성장했습니다. 상당한 투자에도 불구하고 부채 비율은 4.7로 유지되었습니다.
로저스는 2024년 전망을 재확인하며, 총 서비스 수익 성장률을 8-10%, 조정 EBITDA 성장률을 12-15%, 자본 지출을 38-40억 달러, 자유 현금 흐름을 29-31억 달러로 예상했습니다. 회사는 지속적으로 네트워크 확장, 제품 혁신 및 고객 유치에 집중하여 성장과 주주 가치를 강화하고 있습니다.
Rogers Communications (TSX: RCI.A et RCI.B; NYSE: RCI) a annoncé des résultats solides pour le deuxième trimestre 2024, avec une augmentation de 1% des revenus totaux des services et une hausse de 6% de l'EBITDA ajusté. L'entreprise a ajouté 188 000 nouveaux abonnés de téléphone mobile et Internet au T2, prenant la tête de l'industrie. Les revenus des services sans fil ont augmenté de 4% avec une marge de 65%, tandis que l'EBITDA ajusté des câbles a crû de 9% avec une marge de 57%. Malgré des investissements significatifs, le levier est resté stable à 4,7.
Rogers a réaffirmé ses perspectives pour 2024, prévoyant une croissance des revenus totaux des services de 8-10%, une croissance de l'EBITDA ajusté de 12-15%, des dépenses d'investissement de 3,8 à 4,0 milliards de dollars, et un flux de trésorerie libre de 2,9 à 3,1 milliards de dollars. L'entreprise continue de se concentrer sur l'expansion du réseau, l'innovation des produits et l'acquisition de clients pour stimuler la croissance et la valeur pour les actionnaires.
Rogers Communications (TSX: RCI.A und RCI.B; NYSE: RCI) berichtete von starken Ergebnissen im 2. Quartal 2024, mit einem Anstieg der Gesamterlöse um 1% und einem Anstieg des bereinigten EBITDA um 6%. Das Unternehmen verzeichnete 188.000 netto neue Kunden im Mobilfunk- und Internetbereich im 2. Quartal und führte damit die Branche an. Der Umsatz aus drahtlosen Dienstleistungen stieg um 4% bei einer Marge von 65%, während das bereinigte EBITDA für Kabel um 9% bei einer Marge von 57% zunahm. Trotz erheblicher Investitionen blieb die Verschuldung stabil bei 4,7.
Rogers bestätigte seinen Ausblick für 2024 und rechnet mit einem Wachstum der Gesamterlöse von 8-10%, einem Wachstum des bereinigten EBITDA von 12-15%, Investitionsausgaben in Höhe von 3,8-4,0 Milliarden Dollar und einem freien Cashflow von 2,9-3,1 Milliarden Dollar. Das Unternehmen konzentriert sich weiterhin auf den Netzwerkausbau, Produktinnovationen und die Kundengewinnung, um Wachstum und Shareholder Value voranzutreiben.
- 188,000 mobile phone and Internet net additions in Q2, leading the industry
- Wireless service revenue up 4% with 65% margin
- Cable adjusted EBITDA up 9% with 57% margin
- Free cash flow increased 40% to $666 million
- Reaffirmed strong 2024 outlook with projected growth across key metrics
- Cable revenue down 2% due to competitive promotional activity
- Media adjusted EBITDA decreased by $4 million due to higher Toronto Blue Jays expenses
- Cash provided by operating activities decreased 10% to $1,472 million
Rogers Communications' second-quarter results highlight continued positive momentum in their wireless and Internet segments. The company achieved a notable 6% increase in adjusted EBITDA and a 4% rise in wireless service revenue, demonstrating strong operational execution. The net addition of 162,000 mobile phone subscriptions and 50,000 prepaid subscriptions is significant, indicating a growing customer base.
The decline in cable revenue by 2% and cable service revenue by 3% might raise some concerns, but the adjusted EBITDA increase of 9% and a margin of 57% counterbalance these declines. This improvement is attributed to the synergy program following the Shaw Transaction and cost efficiencies.
Rogers' leverage ratio remains steady at 4.7, with plans to reduce it to 4.2 by year-end, supported by a solid free cash flow of
Rogers' strategic deployment of 3800 MHz spectrum licences and expansion of 5G coverage, especially in Toronto's subway tunnels, underscores their commitment to building the best networks. This not only enhances customer experience but also strengthens their competitive edge in a growing market.
Partnerships with Warner Bros. Discovery, NBCUniversal and Amazon highlight Rogers' focus on delivering top-tier content and expanding service offerings. These deals are likely to enhance customer loyalty and attract new subscribers, contributing to long-term growth.
The agreement with Comcast to bring Xfinity products and technology to Canadians can potentially revolutionize the service offerings, making Rogers a more attractive choice for consumers. These strategic moves position Rogers well to capitalize on industry trends and consumer demands.
Rogers' initiatives to expand 5G capabilities and invest in advanced network infrastructure are critical for maintaining technological leadership. The deployment of 3800 MHz spectrum licences is a strategic move that will enhance network performance and provide customers with faster and more reliable services.
The collaboration with CableLabs to establish a research and development facility in Calgary is noteworthy. This facility is expected to drive innovation and may result in the development of new technologies that could give Rogers a competitive advantage in the market.
Furthermore, expanding 5G coverage in urban areas such as Toronto's subway system is a significant enhancement, addressing a common pain point for commuters and creating a more seamless mobile experience. These advancements are likely to boost customer satisfaction and retention.
More Canadians continue to choose Rogers Wireless and Internet than any other carrier in Canada
- Rogers' combined mobile phone and Internet net additions of 188,000 in Q2 and 275,000 for the year to date
- Q2 postpaid mobile phone net additions of 112,000; prepaid net additions of 50,000; retail Internet net additions of 26,000
- Rogers has added industry-best 1.7 million mobile phone and Internet net additions over the past 10 quarters
Continued disciplined loading, strong execution, efficiency gains, and industry-leading financial performance
- Wireless service revenue up
4% and adjusted EBITDA up6% ; margin of65% ; blended ARPU up1% - Cable revenue down
2% ; adjusted EBITDA up9% ; margin of57% - Leverage steady at 4.7 despite Q2 investment in Canada of
$1 billion in capital expenditures and$475 million payment for spectrum licences to federal government in the first half ($380 million in Q2); targeting 4.2 leverage by year-end
Company reaffirms 2024 outlook
- Total service revenue growth of
8% to10% ; adjusted EBITDA growth of12% to15% ; capital expenditures of$3.8 billion to$4.0 billion ; and free cash flow of$2.9 billion to$3.1 billion
TORONTO, July 24, 2024 (GLOBE NEWSWIRE) -- Rogers Communications Inc. (TSX: RCI.A and RCI.B; NYSE: RCI) today announced its unaudited financial and operating results for the second quarter ended June 30, 2024.
"We continued to deliver industry-leading financial results in the second quarter and attract more Canadians than any other carrier," said Tony Staffieri, President and CEO. "With the backdrop of a growing market and healthy competition, we delivered growth with record Wireless and Cable margins. We are on track to deliver our 2024 plan and I am proud of our team for continuing to out-execute our peers."
Consolidated Financial Highlights
(In millions of Canadian dollars, except per share amounts, unaudited) | Three months ended June 30 | Six months ended June 30 | ||||||||||
2024 | 2023 | % Chg | 2024 | 2023 | % Chg | |||||||
Total revenue | 5,093 | 5,046 | 1 | 9,994 | 8,881 | 13 | ||||||
Total service revenue | 4,599 | 4,534 | 1 | 8,956 | 7,848 | 14 | ||||||
Adjusted EBITDA 1 | 2,325 | 2,190 | 6 | 4,539 | 3,841 | 18 | ||||||
Net income | 394 | 109 | n/m | 650 | 620 | 5 | ||||||
Adjusted net income 1 | 623 | 544 | 15 | 1,163 | 1,097 | 6 | ||||||
Diluted earnings per share | $0.73 | n/m | $1.20 | 1 | ||||||||
Adjusted diluted earnings per share 1 | $1.16 | 14 | $2.16 | 2 | ||||||||
Cash provided by operating activities | 1,472 | 1,635 | (10 | ) | 2,652 | 2,088 | 27 | |||||
Free cash flow 1 | 666 | 476 | 40 | 1,252 | 846 | 48 |
n/m - not meaningful
__________________________
1 Adjusted EBITDA is a total of segments measure. Free cash flow is a capital management measure. Adjusted diluted earnings per share is a non-GAAP ratio. Adjusted net income is a non-GAAP financial measure and is a component of adjusted diluted earnings per share. See "Non-GAAP and Other Financial Measures" in our Q2 2024 Management's Discussion and Analysis (MD&A), available at www.sedarplus.ca, and this earnings release for more information about each of these measures. These are not standardized financial measures under International Financial Reporting Standards (IFRS) and might not be comparable to similar financial measures disclosed by other companies.
Strategic Highlights
The five objectives set out below guide our work and decision-making as we further improve our operational execution and make well-timed investments to grow our core businesses and deliver increased shareholder value. Below are some highlights for the quarter.
Build the biggest and best networks in the country
- Started to deploy 3800 MHz spectrum licences, further expanding our 5G capabilities.
- Expanding 5G coverage to the remaining tunnels of Toronto’s subway system.
- Announced the CableLabs North collaboration with CableLabs, a new research and development facility in Calgary.
Deliver easy to use, reliable products and services
- Signed landmark deals with Warner Bros. Discovery and NBCUniversal to acquire the most-watched lifestyle and entertainment content.
- Expanded our Self Protect service to customers across Western Canada.
- Launched Disney+ for eligible Ignite TV customers at no additional cost.
Be the first choice for Canadians
- Led the industry with 162,000 mobile phone net additions. In the last 10 quarters, we have added 1.7 million total mobile phone and Internet net additions.
- Announced a milestone agreement with Amazon to broadcast Monday night NHL hockey on Prime Video.
- Announced a ten-year agreement with Comcast to bring their world-class Xfinity products and technology to Canadians.
Be a strong national company investing in Canada
- Invested
$1 billion in capital expenditures, the majority in our wireless and wireline networks. - Released our 2023 economic impact assessment showing Rogers supported 92,000 jobs and contributed
$14 billion to GDP. - Completed the final phase of the Rogers Centre renovations.
Be the growth leader in our industry
- Grew total service revenue by
1% and adjusted EBITDA by6% . - Reported industry-leading growth in our Wireless operations.
- Generated free cash flow of
$666 million , up40% , and cash flow from operating activities of$1,472 million .
Quarterly Financial Highlights
Revenue
Total revenue and total service revenue each increased by
Wireless service revenue increased by
Total Cable revenue and Cable service revenue decreased by
Media revenue increased by
Adjusted EBITDA and margins
Consolidated adjusted EBITDA increased
Wireless adjusted EBITDA increased by
Cable adjusted EBITDA increased by
Media adjusted EBITDA decreased by
Net income and adjusted net income
Net income increased by
Cash flow and available liquidity
This quarter, we generated cash provided by operating activities of
As at June 30, 2024, we had
Our debt leverage ratio2 as at June 30, 2024 was 4.7 (December 31, 2023 - 5.0, or 4.7 on an as adjusted basis to include trailing 12-month adjusted EBITDA of a combined Rogers and Shaw as if the Shaw Transaction had closed on January 1, 2023).
We also returned
__________________________
2 Available liquidity and debt leverage ratio are capital management measures. Pro forma debt leverage ratio is a non-GAAP ratio. Pro forma trailing 12-month adjusted EBITDA is a non-GAAP financial measure and is a component of pro forma debt leverage ratio. See "Non-GAAP and Other Financial Measures" in our Q2 2024 MD&A for more information about this measure, available at www.sedarplus.ca. These are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other companies. See "Financial Condition" in our Q2 2024 MD&A for a reconciliation of available liquidity.
About this Earnings Release
This earnings release contains important information about our business and our performance for the three and six months ended June 30, 2024, as well as forward-looking information (see "About Forward-Looking Information") about future periods. This earnings release should be read in conjunction with our Second Quarter 2024 Interim Condensed Consolidated Financial Statements (Second Quarter 2024 Interim Financial Statements) and notes thereto, which have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as issued by the International Accounting Standards Board (IASB); our Second Quarter 2024 MD&A; our 2023 Annual MD&A; our 2023 Annual Audited Consolidated Financial Statements and notes thereto, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB; and our other recent filings with Canadian and US securities regulatory authorities, including our Annual Information Form, which are available on SEDAR+ at sedarplus.ca or EDGAR at sec.gov, respectively.
For more information about Rogers, including product and service offerings, competitive market and industry trends, our overarching strategy, key performance drivers, and objectives, see "Understanding Our Business", "Our Strategy, Key Performance Drivers, and Strategic Highlights", and "Capability to Deliver Results" in our 2023 Annual MD&A. References in this earnings release to the Shaw Transaction are to our acquisition of Shaw Communications Inc. (Shaw) on April 3, 2023. For additional details regarding the Shaw Transaction, see "Shaw Transaction" in our 2023 Annual MD&A and our 2023 Annual Audited Consolidated Financial Statements.
We, us, our, Rogers, Rogers Communications, and the Company refer to Rogers Communications Inc. and its subsidiaries. RCI refers to the legal entity Rogers Communications Inc., not including its subsidiaries. Rogers also holds interests in various investments and ventures.
All dollar amounts in this earnings release are in Canadian dollars unless otherwise stated and are unaudited. All percentage changes are calculated using the rounded numbers as they appear in the tables. This earnings release is current as at July 23, 2024 and was approved by the Audit and Risk Committee of RCI's Board of Directors (the Board) on that date.
In this earnings release, this quarter, the quarter, or second quarter refer to the three months ended June 30, 2024, the first quarter refers to the three months ended March 31, 2024, and year to date refers to the six months ended June 30, 2024, unless the context indicates otherwise. All results commentary is compared to the equivalent period in 2023 or as at December 31, 2023, as applicable, unless otherwise indicated.
Trademarks in this earnings release are owned or used under licence by Rogers Communications Inc. or an affiliate. This earnings release may also include trademarks of other parties. The trademarks referred to in this earnings release may be listed without the ™ symbols. ©2024 Rogers Communications
Reportable segments
We report our results of operations in three reportable segments. Each segment and the nature of its business is as follows:
Segment | Principal activities |
Wireless | Wireless telecommunications operations for Canadian consumers and businesses. |
Cable | Cable telecommunications operations, including Internet, television and other video (Video), Satellite, telephony (Home Phone), and home monitoring services for Canadian consumers and businesses, and network connectivity through our fibre network and data centre assets to support a range of voice, data, networking, hosting, and cloud-based services for the business, public sector, and carrier wholesale markets. |
Media | A diversified portfolio of media properties, including sports media and entertainment, television and radio broadcasting, specialty channels, multi-platform shopping, and digital media. |
Wireless and Cable are operated by our wholly owned subsidiary, Rogers Communications Canada Inc. (RCCI), and certain other wholly owned subsidiaries. Media is operated by our wholly owned subsidiary, Rogers Media Inc., and its subsidiaries.
Summary of Consolidated Financial Results
Three months ended June 30 | Six months ended June 30 | |||||||||||||||
(In millions of dollars, except margins and per share amounts) | 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | ||||||||||
Revenue | ||||||||||||||||
Wireless | 2,466 | 2,424 | 2 | 4,994 | 4,770 | 5 | ||||||||||
Cable | 1,964 | 2,013 | (2 | ) | 3,923 | 3,030 | 29 | |||||||||
Media | 736 | 686 | 7 | 1,215 | 1,191 | 2 | ||||||||||
Corporate items and intercompany eliminations | (73 | ) | (77 | ) | (5 | ) | (138 | ) | (110 | ) | 25 | |||||
Revenue | 5,093 | 5,046 | 1 | 9,994 | 8,881 | 13 | ||||||||||
Total service revenue 1 | 4,599 | 4,534 | 1 | 8,956 | 7,848 | 14 | ||||||||||
Adjusted EBITDA | ||||||||||||||||
Wireless | 1,296 | 1,222 | 6 | 2,580 | 2,401 | 7 | ||||||||||
Cable | 1,116 | 1,026 | 9 | 2,216 | 1,583 | 40 | ||||||||||
Media | — | 4 | (100 | ) | (103 | ) | (34 | ) | n/m | |||||||
Corporate items and intercompany eliminations | (87 | ) | (62 | ) | 40 | (154 | ) | (109 | ) | 41 | ||||||
Adjusted EBITDA | 2,325 | 2,190 | 6 | 4,539 | 3,841 | 18 | ||||||||||
Adjusted EBITDA margin 2 | 45.7 | % | 43.4 | % | 2.3 pts | 45.4 | % | 43.2 | % | 2.2 pts | ||||||
Net income | 394 | 109 | n/m | 650 | 620 | 5 | ||||||||||
Basic earnings per share | $0.74 | n/m | $1.22 | 2 | ||||||||||||
Diluted earnings per share | $0.73 | n/m | $1.20 | 1 | ||||||||||||
Adjusted net income 2 | 623 | 544 | 15 | 1,163 | 1,097 | 6 | ||||||||||
Adjusted basic earnings per share 2 | $1.17 | 14 | $2.19 | 3 | ||||||||||||
Adjusted diluted earnings per share | $1.16 | 14 | $2.16 | 2 | ||||||||||||
Capital expenditures | 999 | 1,079 | (7 | ) | 2,057 | 1,971 | 4 | |||||||||
Cash provided by operating activities | 1,472 | 1,635 | (10 | ) | 2,652 | 2,088 | 27 | |||||||||
Free cash flow | 666 | 476 | 40 | 1,252 | 846 | 48 |
1 As defined. See "Key Performance Indicators".
2 Adjusted EBITDA margin is a supplementary financial measure. Adjusted basic earnings per share is a non-GAAP ratio. Adjusted net income is a non-GAAP financial measure and is a component of adjusted basic earnings per share. These are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other companies. See "Non-GAAP and Other Financial Measures" in our Q2 2024 MD&A for more information about each of these measures, available at www.sedarplus.ca.
Results of our Reportable Segments
WIRELESS
Wireless Financial Results
Three months ended June 30 | Six months ended June 30 | ||||||||||||
(In millions of dollars, except margins) | 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | |||||||
Revenue | |||||||||||||
Service revenue | 1,988 | 1,920 | 4 | 3,984 | 3,756 | 6 | |||||||
Equipment revenue | 478 | 504 | (5 | ) | 1,010 | 1,014 | — | ||||||
Revenue | 2,466 | 2,424 | 2 | 4,994 | 4,770 | 5 | |||||||
Operating costs | |||||||||||||
Cost of equipment | 492 | 501 | (2 | ) | 1,031 | 1,009 | 2 | ||||||
Other operating costs | 678 | 701 | (3 | ) | 1,383 | 1,360 | 2 | ||||||
Operating costs | 1,170 | 1,202 | (3 | ) | 2,414 | 2,369 | 2 | ||||||
Adjusted EBITDA | 1,296 | 1,222 | 6 | 2,580 | 2,401 | 7 | |||||||
Adjusted EBITDA margin 1 | 65.2 | % | 63.6 | % | 1.6 pts | 64.8 | % | 63.9 | % | 0.9 pts | |||
Capital expenditures | 396 | 458 | (14 | ) | 800 | 910 | (12 | ) |
1 Calculated using service revenue.
Wireless Subscriber Results 1
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||
(In thousands, except churn and mobile phone ARPU) | 2024 | 2023 | Chg | 2024 | 2023 | Chg | |||||||||||||
Postpaid mobile phone 2 | |||||||||||||||||||
Gross additions | 451 | 430 | 21 | 894 | 748 | 146 | |||||||||||||
Net additions | 112 | 170 | (58 | ) | 210 | 265 | (55 | ) | |||||||||||
Total postpaid mobile phone subscribers3 | 10,598 | 10,107 | 491 | 10,598 | 10,107 | 491 | |||||||||||||
Churn (monthly) | 1.07 | % | 0.87 | % | 0.20 pts | 1.09 | % | 0.83 | % | 0.26 pts | |||||||||
Prepaid mobile phone4 | |||||||||||||||||||
Gross additions | 148 | 231 | (83 | ) | 232 | 448 | (216 | ) | |||||||||||
Net additions (losses) | 50 | (5 | ) | 55 | 13 | (13 | ) | 26 | |||||||||||
Total prepaid mobile phone subscribers3 | 1,068 | 1,242 | (174 | ) | 1,068 | 1,242 | (174 | ) | |||||||||||
Churn (monthly) | 3.20 | % | 6.33 | % | (3.13 pts) | 3.55 | % | 6.14 | % | (2.59 pts) | |||||||||
Mobile phone ARPU (monthly)5 | $57.24 | $57.64 |
1 Subscriber counts and subscriber churn are key performance indicators. See "Key Performance Indicators".
2 Effective January 1, 2024, and on a prospective basis, we adjusted our postpaid mobile phone subscriber base to remove 110,000 Cityfone subscribers as we stopped selling new plans for this service as of that date. Given this, we believe this adjustment more meaningfully reflects the underlying organic subscriber performance of our postpaid mobile phone business.
3 As at end of period.
4 Effective January 1, 2024, and on a prospective basis, we adjusted our prepaid mobile phone subscriber base to remove 56,000 Fido prepaid subscribers as we stopped selling new plans for this service as of that date. Given this, we believe this adjustment more meaningfully reflects the underlying organic subscriber performance of our prepaid mobile phone business.
5 Mobile phone ARPU is a supplementary financial measure. See "Non-GAAP and Other Financial Measures" in our Q2 2024 MD&A for more information about this measure, available at www.sedarplus.ca.
Service revenue
The
The increases in mobile phone ARPU this quarter and year to date were primarily associated with the changes in subscribers. We continue to see robust growth in net additions on our premium Rogers brand.
The continued significant postpaid gross and net additions this quarter and year to date were a result of sales execution in a growing Canadian market.
Equipment revenue
The
- fewer device upgrades by existing customers; partially offset by
- an increase in new subscribers purchasing devices; and
- a continued shift in the product mix towards higher-value devices.
Operating costs
Cost of equipment
The
Other operating costs
The
- lower costs associated with productivity and efficiency initiatives; partially offset by
- higher costs associated with our expanded network.
The
Adjusted EBITDA
The
CABLE
Cable Financial Results
Three months ended June 30 | Six months ended June 30 | |||||||||||
(In millions of dollars, except margins) | 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | ||||||
Revenue | ||||||||||||
Service revenue | 1,948 | 2,005 | (3 | ) | 3,895 | 3,011 | 29 | |||||
Equipment revenue | 16 | 8 | 100 | 28 | 19 | 47 | ||||||
Revenue | 1,964 | 2,013 | (2 | ) | 3,923 | 3,030 | 29 | |||||
Operating costs | 848 | 987 | (14 | ) | 1,707 | 1,447 | 18 | |||||
Adjusted EBITDA | 1,116 | 1,026 | 9 | 2,216 | 1,583 | 40 | ||||||
Adjusted EBITDA margin | 56.8 | % | 51.0 | % | 5.8 pts | 56.5 | % | 52.2 | % | 4.3 pts | ||
Capital expenditures | 509 | 538 | (5 | ) | 989 | 857 | 15 |
Cable Subscriber Results 1
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||
(In thousands, except ARPA and penetration) | 2024 | 2023 | Chg | 2024 | 2023 | Chg | |||||||||||||
Homes passed 2 | 10,061 | 9,815 | 246 | 10,061 | 9,815 | 246 | |||||||||||||
Customer relationships | |||||||||||||||||||
Net additions | 13 | 5 | 8 | 20 | 6 | 14 | |||||||||||||
Total customer relationships 2 | 4,656 | 4,787 | (131 | ) | 4,656 | 4,787 | (131 | ) | |||||||||||
ARPA (monthly) 3 | $139.62 | ( | ) | $139.87 | ( | ) | |||||||||||||
Penetration 2 | 46.3 | % | 48.8 | % | (2.5 pts) | 46.3 | % | 48.8 | % | (2.5 pts) | |||||||||
Retail Internet | |||||||||||||||||||
Net additions | 26 | 25 | 1 | 52 | 39 | 13 | |||||||||||||
Total retail Internet subscribers 2 | 4,214 | 4,284 | (70 | ) | 4,214 | 4,284 | (70 | ) | |||||||||||
Video | |||||||||||||||||||
Net (losses) additions | (33 | ) | 12 | (45 | ) | (60 | ) | 4 | (64 | ) | |||||||||
Total Video subscribers2 | 2,691 | 2,732 | (41 | ) | 2,691 | 2,732 | (41 | ) | |||||||||||
Home Monitoring | |||||||||||||||||||
Net additions (losses) | 13 | (4 | ) | 17 | 12 | (9 | ) | 21 | |||||||||||
Total Home Monitoring subscribers2 | 101 | 92 | 9 | 101 | 92 | 9 | |||||||||||||
Home Phone | |||||||||||||||||||
Net losses | (31 | ) | (29 | ) | (2 | ) | (66 | ) | (42 | ) | (24 | ) | |||||||
Total Home Phone subscribers 2 | 1,563 | 1,684 | (121 | ) | 1,563 | 1,684 | (121 | ) |
1 Subscriber results are key performance indicators. See "Key Performance Indicators".
2 As at end of period.
3 ARPA is a supplementary financial measure. See "Non-GAAP and Other Financial Measures" in our Q2 2024 MD&A for more information about this measure, available at www.sedarplus.ca.
Service revenue
The
- continued competitive promotional activity; and
- declines in our Home Phone and Satellite subscriber bases.
The
The lower ARPA this year was primarily a result of competitive promotional activity.
Operating costs
The
Adjusted EBITDA
The
MEDIA
Media Financial Results
Three months ended June 30 | Six months ended June 30 | |||||||||||
(In millions of dollars, except margins) | 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | ||||||
Revenue | 736 | 686 | 7 | 1,215 | 1,191 | 2 | ||||||
Operating costs | 736 | 682 | 8 | 1,318 | 1,225 | 8 | ||||||
Adjusted EBITDA | — | 4 | (100 | ) | (103 | ) | (34) | n/m | ||||
Adjusted EBITDA margin | — | % | 0.6 | % | (0.6pts | ) | (8.5 | )% | (2.9 | )% | (5.6 pts) | |
Capital expenditures | 48 | 43 | 12 | 168 | 104 | 62 |
Revenue
The
- higher sports-related revenue, primarily at the Toronto Blue Jays; partially offset by
- lower Today's Shopping Choice revenue.
Operating costs
The
- higher Toronto Blue Jays expenses, including players payroll and game day-related costs; partially offset by
- lower Today’s Shopping Choice costs in line with lower revenue.
Adjusted EBITDA
The decreases in adjusted EBITDA this quarter and year to date were a result of the revenue and expense changes discussed above.
CAPITAL EXPENDITURES
Three months ended June 30 | Six months ended June 30 | ||||||||||||
(In millions of dollars, except capital intensity) | 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | |||||||
Wireless | 396 | 458 | (14 | ) | 800 | 910 | (12 | ) | |||||
Cable | 509 | 538 | (5 | ) | 989 | 857 | 15 | ||||||
Media | 48 | 43 | 12 | 168 | 104 | 62 | |||||||
Corporate | 46 | 40 | 15 | 100 | 100 | — | |||||||
Capital expenditures 1 | 999 | 1,079 | (7 | ) | 2,057 | 1,971 | 4 | ||||||
Capital intensity 2 | 19.6 | % | 21.4 | % | (1.8 pts) | 20.6 | % | 22.2 | % | (1.6 pts) |
1 Includes additions to property, plant and equipment net of proceeds on disposition, but does not include expenditures for spectrum licences, additions to right-of-use assets, or assets acquired through business combinations.
2 Capital intensity is a supplementary financial measure. See "Non-GAAP and Other Financial Measures" in our Q2 2024 MD&A for more information about this measure, available at www.sedarplus.ca.
One of our objectives is to build the biggest and best networks in the country. As we continually work towards this, we once again plan to spend more on our wireless and wireline networks this year than we have in the past several years. We continue to roll out our 5G network (the largest 5G network in Canada as at June 30, 2024) across the country, as we work toward our commitment to expand coverage across Western Canada. We also continue to invest in fibre deployments, including fibre-to-the-home (FTTH), in our cable network and we are expanding our network footprint to reach more homes and businesses, including in rural, remote, and Indigenous communities.
These investments will strengthen network resilience and stability and will help us bridge the digital divide by expanding our network further into rural and underserved areas through participation in various programs and projects.
Wireless
The decreases in capital expenditures in Wireless this quarter and year to date were due to the timing of investments. We continue to make investments in our network development and 5G deployment to expand our wireless network. The ongoing deployment of 3500 MHz spectrum and the commencement of 3800 MHz spectrum deployment continue to augment the capacity and resilience of our earlier 5G deployments in the 600 MHz spectrum band.
Cable
The decrease in capital expenditures in Cable this quarter was due to timing of investments. The increase in capital expenditures year to date reflect our acquisition of Shaw. We continue to make investments in our infrastructure, including additional fibre deployments to increase our FTTH distribution. These investments incorporate the latest technologies to help deliver more bandwidth and an enhanced customer experience as we progress in our connected home roadmap, including service footprint expansion and upgrades to our DOCSIS 3.1 platform to evolve to DOCSIS 4.0, offering increased network resilience, stability, and faster download speeds over time.
Media
The increases in capital expenditures in Media this quarter and year to date were primarily a result of higher Toronto Blue Jays stadium infrastructure-related expenditures associated with the second phase of the Rogers Centre modernization project.
Capital intensity
Capital intensity decreased this quarter and year to date as a result of the revenue and capital expenditure changes discussed above.
Review of Consolidated Performance
This section discusses our consolidated net income and other income and expenses that do not form part of the segment discussions above.
Three months ended June 30 | Six months ended June 30 | |||||||||||
(In millions of dollars) | 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | ||||||
Adjusted EBITDA | 2,325 | 2,190 | 6 | 4,539 | 3,841 | 18 | ||||||
Deduct (add): | ||||||||||||
Depreciation and amortization | 1,136 | 1,158 | (2 | ) | 2,285 | 1,789 | 28 | |||||
Restructuring, acquisition and other | 90 | 331 | (73 | ) | 232 | 386 | (40 | ) | ||||
Finance costs | 576 | 583 | (1 | ) | 1,156 | 879 | 32 | |||||
Other (income) expense | (5 | ) | (18 | ) | (72 | ) | 3 | (45 | ) | n/m | ||
Income tax expense | 134 | 27 | n/m | 213 | 212 | — | ||||||
Net income | 394 | 109 | n/m | 650 | 620 | 5 |
Depreciation and amortization
Three months ended June 30 | Six months ended June 30 | |||||||
(In millions of dollars) | 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | ||
Depreciation of property, plant and equipment | 902 | 911 | (1 | ) | 1,808 | 1,468 | 23 | |
Depreciation of right-of-use assets | 97 | 104 | (7 | ) | 207 | 172 | 20 | |
Amortization | 137 | 143 | (4 | ) | 270 | 149 | 81 | |
Total depreciation and amortization | 1,136 | 1,158 | (2 | ) | 2,285 | 1,789 | 28 |
The year to date increase in depreciation and amortization was primarily a result of the assets acquired through the Shaw Transaction.
Restructuring, acquisition and other
Three months ended June 30 | Six months ended June 30 | ||||
(In millions of dollars) | 2024 | 2023 | 2024 | 2023 | |
Restructuring and other | 66 | 143 | 178 | 165 | |
Shaw Transaction-related costs | 24 | 188 | 54 | 221 | |
Total restructuring, acquisition and other | 90 | 331 | 232 | 386 |
The Shaw Transaction-related costs in 2023 and 2024 consisted of incremental costs supporting acquisition (in 2023) and integration activities (in 2023 and 2024) related to the Shaw Transaction. In the second quarter of 2023, these costs primarily reflected closing-related fees, the Shaw Transaction-related employee retention program, and the cost of the tangible benefits package related to the broadcasting portion of the Shaw Transaction.
The restructuring and other costs in 2023 and 2024 were primarily severance and other departure-related costs associated with the targeted restructuring of our employee base, which also included costs associated with voluntary departure programs in 2024. These costs also included costs related to real estate rationalization programs.
Finance costs
Three months ended June 30 | Six months ended June 30 | ||||||||||||
(In millions of dollars) | 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | |||||||
Total interest on borrowings 1 | 512 | 522 | (2 | ) | 1,020 | 915 | 11 | ||||||
Interest earned on restricted cash and cash equivalents | — | (3 | ) | (100 | ) | — | (149 | ) | (100 | ) | |||
Interest on borrowings, net | 512 | 519 | (1 | ) | 1,020 | 766 | 33 | ||||||
Interest on lease liabilities | 34 | 27 | 26 | 69 | 50 | 38 | |||||||
Interest on post-employment benefits | — | (5 | ) | (100 | ) | (2 | ) | (7 | ) | (71 | ) | ||
Loss (gain) on foreign exchange | 30 | (141 | ) | n/m | 139 | (127 | ) | n/m | |||||
Change in fair value of derivative instruments | (24 | ) | 144 | n/m | (122 | ) | 133 | n/m | |||||
Capitalized interest | (10 | ) | (9 | ) | 11 | (22 | ) | (17 | ) | 29 | |||
Deferred transaction costs and other | 34 | 48 | (29 | ) | 74 | 81 | (9 | ) | |||||
Total finance costs | 576 | 583 | (1 | ) | 1,156 | 879 | 32 |
1 Interest on borrowings includes interest on short-term borrowings and on long-term debt.
Interest on borrowings, net
The
- a reduction in interest earned on restricted cash and cash equivalents, as we used these funds to partially fund the Shaw Transaction on April 3, 2023; and
- interest expense associated with the long-term debt assumed through the Shaw Transaction; partially offset by
- the repayment at maturity of senior notes in March 2023, October 2023, November 2023, January 2024, and March 2024 at different underlying interest rates; and
- lower interest expense associated with refinancing a significant portion of the borrowings under our term loan facility with senior notes issued in September 2023 and February 2024.
Income tax expense
Three months ended June 30 | Six months ended June 30 | ||||||||
(In millions of dollars, except tax rates) | 2024 | 2023 | 2024 | 2023 | |||||
Statutory income tax rate | 26.2 | % | 26.2 | % | 26.2 | % | 26.2 | % | |
Income before income tax expense | 528 | 136 | 863 | 832 | |||||
Computed income tax expense | 138 | 36 | 226 | 218 | |||||
Increase (decrease) in income tax expense resulting from: | |||||||||
Non-(taxable) deductible stock-based compensation | (4 | ) | (3 | ) | (10 | ) | 3 | ||
Non-deductible (taxable) portion of equity losses (income) | 1 | — | 1 | (4 | ) | ||||
Non-taxable income from security investments | — | (3 | ) | — | (6 | ) | |||
Revaluation of deferred tax balances due to rate change | — | (3 | ) | — | (3 | ) | |||
Other items | (1 | ) | — | (4 | ) | 4 | |||
Total income tax expense | 134 | 27 | 213 | 212 | |||||
Effective income tax rate | 25.4 | % | 19.9 | % | 24.7 | % | 25.5 | % | |
Cash income taxes paid | 158 | 125 | 232 | 275 |
Cash income taxes paid increased this quarter and decreased year to date due to the timing of installment payments.
Net income
Three months ended June 30 | Six months ended June 30 | ||||||||||
(In millions of dollars, except per share amounts) | 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | |||||
Net income | 394 | 109 | n/m | 650 | 620 | 5 | |||||
Basic earnings per share | $0.74 | n/m | $1.22 | 2 | |||||||
Diluted earnings per share | $0.73 | n/m | $1.20 | 1 |
Adjusted net income
We calculate adjusted net income from adjusted EBITDA as follows:
Three months ended June 30 | Six months ended June 30 | ||||||||||||||
(In millions of dollars, except per share amounts) | 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | |||||||||
Adjusted EBITDA | 2,325 | 2,190 | 6 | 4,539 | 3,841 | 18 | |||||||||
Deduct: | |||||||||||||||
Depreciation and amortization 1 | 916 | 906 | 1 | 1,823 | 1,537 | 19 | |||||||||
Finance costs | 576 | 583 | (1 | ) | 1,156 | 879 | 32 | ||||||||
Other income (expense) | (5 | ) | (18 | ) | (72 | ) | 3 | (45 | ) | n/m | |||||
Income tax expense 2 | 215 | 175 | 23 | 394 | 373 | 6 | |||||||||
Adjusted net income 1 | 623 | 544 | 15 | 1,163 | 1,097 | 6 | |||||||||
Adjusted basic earnings per share | $1.17 | 14 | $2.19 | 3 | |||||||||||
Adjusted diluted earnings per share | $1.16 | 14 | $2.16 | 2 |
1 Our calculation of adjusted net income excludes depreciation and amortization on the fair value increment recognized on acquisition of Shaw Transaction-related property, plant and equipment and intangible assets. For purposes of calculating adjusted net income, we believe the magnitude of this depreciation and amortization, which was significantly affected by the size of the Shaw Transaction, may have no correlation to our current and ongoing operating results and affects comparability between certain periods. Depreciation and amortization excludes depreciation and amortization on Shaw Transaction-related property, plant and equipment and intangible assets for the three and six months ended June 30, 2024 of
2 Income tax expense excludes recoveries of
Key Performance Indicators
We measure the success of our strategy using a number of key performance indicators that are defined and discussed in our 2023 Annual MD&A and this earnings release. We believe these key performance indicators allow us to appropriately measure our performance against our operating strategy and against the results of our peers and competitors. The following key performance indicators, some of which are supplementary financial measures (see "Non-GAAP and Other Financial Measures"), are not measurements in accordance with IFRS. They include:
• subscriber counts; | • Cable average revenue per account (ARPA); |
• Wireless; | • Cable customer relationships; |
• Cable; and | • Cable market penetration (penetration); |
• homes passed (Cable); | • capital intensity; and |
• Wireless subscriber churn (churn); | • total service revenue. |
• Wireless mobile phone average revenue per user (ARPU); | |
Non-GAAP and Other Financial Measures
Reconciliation of adjusted EBITDA
Three months ended June 30 | Six months ended June 30 | |||||||
(In millions of dollars) | 2024 | 2023 | 2024 | 2023 | ||||
Net income | 394 | 109 | 650 | 620 | ||||
Add: | ||||||||
Income tax expense | 134 | 27 | 213 | 212 | ||||
Finance costs | 576 | 583 | 1,156 | 879 | ||||
Depreciation and amortization | 1,136 | 1,158 | 2,285 | 1,789 | ||||
EBITDA | 2,240 | 1,877 | 4,304 | 3,500 | ||||
Add (deduct): | ||||||||
Other (income) expense | (5 | ) | (18 | ) | 3 | (45 | ) | |
Restructuring, acquisition and other | 90 | 331 | 232 | 386 | ||||
Adjusted EBITDA | 2,325 | 2,190 | 4,539 | 3,841 |
Reconciliation of pro forma trailing 12-month adjusted EBITDA
As at December 31 | |
(In millions of dollars) | 2023 |
Trailing 12-month adjusted EBITDA - 12 months ended December 31, 2023 | 8,581 |
Add (deduct): | |
Acquired Shaw business adjusted EBITDA - January 2023 to March 2023 | 514 |
Pro forma trailing 12-month adjusted EBITDA | 9,095 |
Reconciliation of adjusted net income
Three months ended June 30 | Six months ended June 30 | ||||||||
(In millions of dollars) | 2024 | 2023 | 2024 | 2023 | |||||
Net income | 394 | 109 | 650 | 620 | |||||
Add (deduct): | |||||||||
Restructuring, acquisition and other | 90 | 331 | 232 | 386 | |||||
Depreciation and amortization on fair value increment of Shaw Transaction-related assets | 220 | 252 | 462 | 252 | |||||
Income tax impact of above items | (81 | ) | (148 | ) | (181 | ) | (161 | ) | |
Adjusted net income | 623 | 544 | 1,163 | 1,097 |
Reconciliation of free cash flow
Three months ended June 30 | Six months ended June 30 | ||||||||
(In millions of dollars) | 2024 | 2023 | 2024 | 2023 | |||||
Cash provided by operating activities | 1,472 | 1,635 | 2,652 | 2,088 | |||||
Add (deduct): | |||||||||
Capital expenditures | (999 | ) | (1,079 | ) | (2,057 | ) | (1,971 | ) | |
Interest on borrowings, net and capitalized interest | (502 | ) | (510 | ) | (998 | ) | (749 | ) | |
Interest paid, net | 474 | 489 | 1,029 | 812 | |||||
Restructuring, acquisition and other | 90 | 331 | 232 | 386 | |||||
Program rights amortization | (23 | ) | (26 | ) | (39 | ) | (44 | ) | |
Change in net operating assets and liabilities | 120 | (261 | ) | 409 | 443 | ||||
Other adjustments 1 | 34 | (103 | ) | 24 | (119 | ) | |||
Free cash flow | 666 | 476 | 1,252 | 846 |
1 Consists of post-employment benefit contributions, net of expense, cash flows relating to other operating activities, and other investment income from our financial statements.
Rogers Communications Inc.
Interim Condensed Consolidated Statements of Income
(In millions of Canadian dollars, except per share amounts, unaudited)
Three months ended June 30 | Six months ended June 30 | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Revenue | 5,093 | 5,046 | 9,994 | 8,881 | ||||||||
Operating expenses: | ||||||||||||
Operating costs | 2,768 | 2,856 | 5,455 | 5,040 | ||||||||
Depreciation and amortization | 1,136 | 1,158 | 2,285 | 1,789 | ||||||||
Restructuring, acquisition and other | 90 | 331 | 232 | 386 | ||||||||
Finance costs | 576 | 583 | 1,156 | 879 | ||||||||
Other (income) expense | (5 | ) | (18 | ) | 3 | (45 | ) | |||||
Income before income tax expense | 528 | 136 | 863 | 832 | ||||||||
Income tax expense | 134 | 27 | 213 | 212 | ||||||||
Net income for the period | 394 | 109 | 650 | 620 | ||||||||
Earnings per share: | ||||||||||||
Basic | $0.74 | $1.22 | ||||||||||
Diluted | $0.73 | $1.20 |
Rogers Communications Inc.
Interim Condensed Consolidated Statements of Financial Position
(In millions of Canadian dollars, unaudited)
As at June 30 | As at December 31 | |
2024 | 2023 | |
Assets | ||
Current assets: | ||
Cash and cash equivalents | 451 | 800 |
Accounts receivable | 4,853 | 4,996 |
Inventories | 512 | 456 |
Current portion of contract assets | 185 | 163 |
Other current assets | 849 | 1,202 |
Current portion of derivative instruments | 105 | 80 |
Assets held for sale | 137 | 137 |
Total current assets | 7,092 | 7,834 |
Property, plant and equipment | 24,691 | 24,332 |
Intangible assets | 18,098 | 17,896 |
Investments | 605 | 598 |
Derivative instruments | 821 | 571 |
Financing receivables | 1,006 | 1,101 |
Other long-term assets | 725 | 670 |
Goodwill | 16,280 | 16,280 |
Total assets | 69,318 | 69,282 |
Liabilities and shareholders' equity | ||
Current liabilities: | ||
Short-term borrowings | 3,039 | 1,750 |
Accounts payable and accrued liabilities | 3,631 | 4,221 |
Other current liabilities | 358 | 434 |
Contract liabilities | 749 | 773 |
Current portion of long-term debt | 2,619 | 1,100 |
Current portion of lease liabilities | 560 | 504 |
Total current liabilities | 10,956 | 8,782 |
Provisions | 62 | 54 |
Long-term debt | 37,966 | 39,755 |
Lease liabilities | 2,159 | 2,089 |
Other long-term liabilities | 1,361 | 1,783 |
Deferred tax liabilities | 6,197 | 6,379 |
Total liabilities | 58,701 | 58,842 |
Shareholders' equity | 10,617 | 10,440 |
Total liabilities and shareholders' equity | 69,318 | 69,282 |
Rogers Communications Inc.
Interim Condensed Consolidated Statements of Cash Flows
(In millions of Canadian dollars, unaudited)
Three months ended June 30 | Six months ended June 30 | ||||||||
2024 | 2023 | 2024 | 2023 | ||||||
Operating activities: | |||||||||
Net income for the period | 394 | 109 | 650 | 620 | |||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||
Depreciation and amortization | 1,136 | 1,158 | 2,285 | 1,789 | |||||
Program rights amortization | 23 | 26 | 39 | 44 | |||||
Finance costs | 576 | 583 | 1,156 | 879 | |||||
Income tax expense | 134 | 27 | 213 | 212 | |||||
Post-employment benefits contributions, net of expense | 20 | 6 | 35 | 4 | |||||
Income from associates and joint ventures | — | (6 | ) | (1 | ) | (20 | ) | ||
Other | (59 | ) | 85 | (55 | ) | 90 | |||
Cash provided by operating activities before changes in net operating assets and liabilities, income taxes paid, and interest paid | 2,224 | 1,988 | 4,322 | 3,618 | |||||
Change in net operating assets and liabilities | (120 | ) | 261 | (409 | ) | (443 | ) | ||
Income taxes paid | (158 | ) | (125 | ) | (232 | ) | (275 | ) | |
Interest paid | (474 | ) | (489 | ) | (1,029 | ) | (812 | ) | |
Cash provided by operating activities | 1,472 | 1,635 | 2,652 | 2,088 | |||||
Investing activities: | |||||||||
Capital expenditures | (999 | ) | (1,079 | ) | (2,057 | ) | (1,971 | ) | |
Additions to program rights | (10 | ) | (12 | ) | (23 | ) | (37 | ) | |
Changes in non-cash working capital related to capital expenditures and intangible assets | (48 | ) | 9 | 39 | (29 | ) | |||
Acquisitions and other strategic transactions, net of cash acquired | (380 | ) | (17,001 | ) | (475 | ) | (17,001 | ) | |
Other | (1 | ) | 3 | 12 | 12 | ||||
Cash used in investing activities | (1,438 | ) | (18,080 | ) | (2,504 | ) | (19,026 | ) | |
Financing activities: | |||||||||
Net (repayment of) proceeds received from short-term borrowings | (43 | ) | (1,931 | ) | 1,261 | (589 | ) | ||
Net (repayment) issuance of long-term debt | (18 | ) | 5,788 | (1,126 | ) | 5,400 | |||
Net proceeds (payments) on settlement of debt derivatives and forward contracts | 24 | (106 | ) | 22 | 121 | ||||
Transaction costs incurred | (4 | ) | (1 | ) | (46 | ) | (265 | ) | |
Principal payments of lease liabilities | (119 | ) | (84 | ) | (231 | ) | (165 | ) | |
Dividends paid | (182 | ) | (252 | ) | (372 | ) | (505 | ) | |
Other | (5 | ) | — | (5 | ) | — | |||
Cash (used in) provided by financing activities | (347 | ) | 3,414 | (497 | ) | 3,997 | |||
Change in cash and cash equivalents and restricted cash and cash equivalents | (313 | ) | (13,031 | ) | (349 | ) | (12,941 | ) | |
Cash and cash equivalents and restricted cash and cash equivalents, beginning of period | 764 | 13,390 | 800 | 13,300 | |||||
Cash and cash equivalents and restricted cash and cash equivalents, end of period | 451 | 359 | 451 | 359 |
About Forward-Looking Information
This earnings release includes "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws (collectively, "forward-looking information"), and assumptions about, among other things, our business, operations, and financial performance and condition approved by our management on the date of this earnings release. This forward-looking information and these assumptions include, but are not limited to, statements about our objectives and strategies to achieve those objectives, and about our beliefs, plans, expectations, anticipations, estimates, or intentions.
Forward-looking information
- typically includes words like could, expect, may, anticipate, assume, believe, intend, estimate, plan, project, guidance, outlook, target, and similar expressions;
- includes conclusions, forecasts, and projections that are based on our current objectives and strategies and on estimates, expectations, assumptions, and other factors that we believe to have been reasonable at the time they were applied but may prove to be incorrect; and
- was approved by our management on the date of this earnings release.
Our forward-looking information includes forecasts and projections related to the following items, among others:
|
|
Our conclusions, forecasts, and projections are based on a number of estimates, expectations, assumptions, and other factors, including, among others:
|
|
Except as otherwise indicated, this earnings release and our forward-looking information do not reflect the potential impact of any non-recurring or other special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations, or other transactions that may be considered or announced or may occur after the date on which the statement containing the forward-looking information is made.
Risks and uncertainties
Actual events and results can be substantially different from what is expressed or implied by forward-looking information as a result of risks, uncertainties, and other factors, many of which are beyond our control, including, but not limited to:
|
|
These factors can also affect our objectives, strategies, and intentions. Many of these factors are beyond our control or our current expectations or knowledge. Should one or more of these risks, uncertainties, or other factors materialize, our objectives, strategies, or intentions change, or any other factors or assumptions underlying the forward-looking information prove incorrect, our actual results and our plans could vary significantly from what we currently foresee.
Accordingly, we warn investors to exercise caution when considering statements containing forward-looking information and caution them that it would be unreasonable to rely on such statements as creating legal rights regarding our future results or plans. We are under no obligation (and we expressly disclaim any such obligation) to update or alter any statements containing forward-looking information or the factors or assumptions underlying them, whether as a result of new information, future events, or otherwise, except as required by law. All of the forward-looking information in this earnings release is qualified by the cautionary statements herein.
Before making an investment decision
Before making any investment decisions and for a detailed discussion of the risks, uncertainties, and environment associated with our business, its operations, and its financial performance and condition, fully review the sections in our 2023 Annual MD&A entitled "Regulation in our Industry" and "Risk Management", as well as our various other filings with Canadian and US securities regulators, which can be found at sedarplus.ca and sec.gov, respectively. Information on or connected to sedarplus.ca, sec.gov, our website, or any other website referenced in this document is not part of or incorporated into this earnings release.
About Rogers
Rogers is Canada’s communications and entertainment company and its shares are publicly traded on the Toronto Stock Exchange (TSX: RCI.A and RCI.B) and on the New York Stock Exchange (NYSE: RCI).
Investment community contact | Media contact |
Paul Carpino | Sarah Schmidt |
647.435.6470 | 647.643.6397 |
paul.carpino@rci.rogers.com | sarah.schmidt@rci.rogers.com |
Quarterly Investment Community Teleconference
Our second quarter 2024 results teleconference with the investment community will be held on:
- July 24, 2024
- 8:00 a.m. Eastern Time
- webcast available at investors.rogers.com
- media are welcome to participate on a listen-only basis
A rebroadcast will be available at investors.rogers.com for at least two weeks following the teleconference. Additionally, investors should note that from time to time, Rogers' management presents at brokerage-sponsored investor conferences. Most often, but not always, these conferences are webcast by the hosting brokerage firm, and when they are webcast, links are made available on Rogers' website at investors.rogers.com.
For More Information
You can find more information relating to us on our website (investors.rogers.com), on SEDAR+ (sedarplus.ca), and on EDGAR (sec.gov), or you can e-mail us at investor.relations@rci.rogers.com. Information on or connected to these and any other websites referenced in this earnings release is not part of, or incorporated into, this earnings release.
You can also go to investors.rogers.com for information about our governance practices, environmental, social, and governance (ESG) reporting, a glossary of communications and media industry terms, and additional information about our business.
![](https://ml.globenewswire.com/media/YWE2YjgxMzYtYjRiOS00OTFhLThlNTgtNGM5NWUzMjdlN2NhLTExMzc1NjA=/tiny/Rogers-Communications-Investor.png)
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