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)
Copyright (c) 2024 Dow Jones & Company, Inc.-
What’s Happening in the Markets This Week
-
Worst-Performing Stock ETFs of the Quarter
-
Q3 in Review and Q4 2024 Market Outlook
-
Top-Performing Stock ETFs of the Quarter
-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue
-
Industrials: Many Stocks Overvalued After Q3 Outperformance
-
Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities
-
What the Election Could Mean for Big Tech Stocks
-
3 Lessons From Recent Stock Market Drama
-
Consumer Cyclicals: Even Amid Moderating Consumer Spending, We See Discounts
-
Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued
-
Utilities: Falling Interest Rates, Growth Outlook Boosting Stocks