Rogers Communications Q2 Revenue Jumps 30%, Boosts FY23 Adj. EBITDA Growth Outlook

Rogers Communications Inc RCI reported Q2 FY23 revenue growth of 30% Y/Y to C$5.05 billion. 

Total service revenue grew 32% Y/Y to C$4.53 billion on higher revenue growth in the Cable and Wireless businesses.

Wireless service revenue increased by 7% Y/Y, mainly aided by the cumulative impact of growth in the mobile phone subscriber base and revenue from Shaw Mobile subscribers.

Cable service revenue rose 93% Y/Y aided by the acquisition of Shaw.

Media revenue increased by 4% Y/Y led by higher sports-related revenue.

Rogers attracted 170,000 net postpaid mobile phone subscribers, up 39% Y/Y, with a churn of 0.87%.

Adjusted EBITDA increased 38% Y/Y to C$2.19 billion, with margins increasing 220 basis points, led by improving synergies and efficiencies.

Adjusted EPS of C$1.02 improved by 19% Y/Y.

Rogers generated C$476 million in free cash flow, up 38% Y/Y. 

It held C$0.4 billion in cash and cash equivalents. Capital expenditure rose 39% Y/Y to C$1.08 billion. 

Dividend: The company declared a quarterly dividend of C$0.50 on each of its outstanding Class B Non-Voting shares and Class A Voting shares, payable on October 3, 2023, to shareholders of record as on September 8, 2023.

FY23 Outlook: The company revised guidance for adjusted EBITDA growth to 33%-36% (from 31%-35%) and free cash flow to C$2.20 billion-C$2.50 billion (from C$2.00 billion-C$2.20 billion prior).

RCI reaffirmed the outlook for service revenue growth at 26%-30% and capital expenditure at C$3.70 billion-C$3.90 billion.

The company continues to expect to realize at least C$200 million of synergies in 2023 and annualized cost synergies of at least C$600 million by the end of Q1 2024 from Shaw Acquisition completed in April 2023. 

Price Action: RCI shares are trading higher by 3.72% at $46.53 on the last check Wednesday.