Rogers Clocks 4% Revenue Growth In Q1 Backed By Improving Canadian Economy; Raises FY22 Guidance

Rogers Communications Inc RCI reported first-quarter FY22 revenue growth of 4% year-on-year to C$3.62 billion. Service revenue grew 6% Y/Y to C$3.2 billion.
Rogers attracted 66,000 net postpaid mobile phone subscribers, up from 22,000 last year, with a churn of 0.71%.
Wireless service revenue increased by 7% Y/Y, mainly due to higher roaming revenue.
Cable service revenue increased by 1% Y/Y due to service pricing changes and increased Internet and Video subscriber bases.
Media revenue increased by 10% Y/Y due to higher sports-related revenue.
Adjusted EPS of C$0.91 improved 18% from C$0.77 last year.
Margin: Adjusted EBITDA margin expanded 260 bps to 42.5%.
Rogers generated C$813 million in operating cash flow and held C$13.9 billion in cash and equivalents.
"Rogers delivered strong first-quarter results across all our businesses, driven by better execution and the continued improvement in Canada's economy," CEO Tony Staffieri said. "As a result, we are increasing Rogers' 2022 service revenue, adjusted EBITDA, and free cash flow guidance to reflect our improved outlook, ahead of further growth associated with the Shaw transaction."
Outlook: Rogers raised its FY22 service revenue growth outlook from 4% - 6% to 6% - 8%.
Price Action: RCI shares closed lower by 0.31% at $58.48 on Tuesday.