Rogers Communications Exceeds Q4 Estimates with Wireless Growth
Rogers Communications Inc. (RCI) surpassed analysts' expectations for the fourth quarter, driven by robust wireless service revenue and increased device sales.
Key Highlights:
* Adjusted EPS: C$1.46, exceeding estimates of C$1.36
* Wireless revenue: 7% growth, slightly below previous guidance of 8-10%
* Wireless subscribers: 95,000 net additions in prepaid and postpaid segments
Cautious Guidance for 2025:
* Adjusted EBITDA growth projected at 0-3% for 2025, following 12% growth in 2024
* Media division weakness cited as a factor in reduced growth trajectory
Financial Performance:
* Revenue: C$5.5 billion, slightly above estimates
* Shares: Down 0.3% to C$41.32 in Toronto trading
Strategic Investments:
* Rogers acquired a 37.5% stake in Maple Leaf Sports & Entertainment Ltd. for C$4.7 billion
* Structured equity investment deal underway with Blackstone Inc. to fund network expansion and debt reduction
Analyst Commentary:
* Bank of Nova Scotia analyst Maher Yaghi notes that Rogers' leverage could increase if the equity financing deal falls through.
* Management emphasizes the continued competitiveness of the wireless market and anticipates ongoing growth driven by device adoption.