Rogers beats revenue estimates on wireless, media business strength
Reuters
Published Feb 02, 2023 08:04
(Reuters) -Canada's Rogers Communications Inc (TSX:RCIa) beat estimates for quarterly revenue and phone subscriber growth on Thursday, benefiting from higher roaming charges and promotional offers during the holiday quarter.
Rogers' push to expand its 5G network and bundle subscriber plans has helped it win customers from rivals in a competitive market where wireless charges are among the highest in the world.
The telecom operator added 193,000 monthly bill paying wireless phone subscribers in the fourth quarter, comfortably beating FactSet estimate of 146,800. It added 164,000 users in the preceding quarter.
Rogers' media business, which includes TV and radio properties, benefited from a jump in advertising during the holiday quarter, with revenue increasing 17% to C$606 million ($456 million).
Revenue at its core wireless business grew 7% to C$2.58 billion, in line with estimates, as it drew more users thanks to promotional offers on latest mobile phones such as Apple (NASDAQ:AAPL) iPhone 14 and Samsung (KS:005930) Galaxy Z.
Total revenue increased 6% to C$4.17 billion in the quarter ended Dec. 31, inching past analysts' average estimate of C$4.15 billion, according to Refinitiv data.
Rogers is in the final stages of closing the deal to acquire smaller rival Shaw Communications Inc, which will allow it to bundle its wireless prowess with Shaw's cable services and reduce subscriber churn.
Earlier this week, the companies extended the closing date of the merger and the sale of Shaw unit Freedom Mobile to Quebecor Inc (TSX:QBRa) to Feb. 17 from January-end.
The deal, which will create Canada's No. 2 telecom operator, needs minister Francois-Philippe Champagne's approval for the transfer of spectrum licenses from Freedom Mobile to Quebecor's Videotron.
(1 Canadian dollar = $0.7530)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.