Telecommunications / Media
₹00.00
RCI (TSX / NYSE)
Rogers Communications Inc. is a prominent Canadian telecommunications and media company, operating across three principal segments: Wireless, Cable, and Media. It stands as Canada's leading communications and entertainment enterprise, with its shares publicly traded on both the Toronto Stock Exchange (TSX: RCI.A and RCI.B) and the New York Stock Exchange (NYSE: RCI). The company is headquartered in Toronto, Ontario.
Rogers serves millions of Canadian consumers and businesses nationwide through its three core business segments:
This segment provides a comprehensive suite of mobile services including:
- Mobile Internet access
- Wireless voice and enhanced voice services
- Device financing and protection plans
- Global voice and data roaming
- Wireless home phone and bridging landline services
- Machine-to-machine (M2M) and Internet of Things (IoT) solutions
- Advanced wireless solutions tailored for businesses
- Device shipping and express pickup services
- Postpaid and prepaid services offered under the Rogers, Fido, and chatr brands.
Rogers delivers essential connectivity and entertainment services:
- High-speed Internet and WiFi services
- Home monitoring, security, automation, and energy efficiency solutions controllable via smartphone app
- Local and network television programming
- On-demand television services
- Cloud-based digital video recorders (DVRs)
- Voice-activated remote controls and integrated apps
- Personal video recorders (PVRs)
- Linear and time-shifted programming
- Digital specialty channels
- 4K television programming.
This segment encompasses a significant portfolio of media and sports assets:
- Ownership of the Toronto Blue Jays baseball team
- Operation of the Rogers Centre event venue
- Management of television networks including Sportsnet ONE, Sportsnet 360, Sportsnet World, Citytv, OMNI, FX (Canada), FXX (Canada), and OLN.
- Operation of 52 AM and FM radio stations.
Rogers Communications reported robust financial results for the third quarter of 2024:
- Customer Additions: Achieved 227,000 combined mobile phone and Internet net additions.
- Revenue: Total service revenue grew by 1% to $4.57 billion.
- EBITDA: Adjusted EBITDA increased by 6% to $2.55 billion.
- Margins: Recorded record margins in both Cable and Wireless segments.
- Wireless Performance: Wireless service revenue saw a 2% increase, and adjusted EBITDA rose by 5%.
- Free Cash Flow: Increased by a significant 23% to $915 million.
Key Q3 2024 Highlights:
- Combined mobile phone and Internet net additions of 227,000 in Q3, contributing to 502,000 for the year-to-date.
- Q3 postpaid mobile phone net additions: 101,000; prepaid net additions: 93,000; retail Internet net additions: 33,000.
- Wireless service revenue up 2%, adjusted EBITDA up 5%, with margins improving by 220 basis points to 66%; blended Average Revenue Per User (ARPU) remained stable.
- The Sports & Media division experienced an 11% revenue increase.
Rogers achieved over $20 billion in annual revenue for 2024, driven by continued customer preference for its Wireless and Internet services over competitors in Canada.
Rogers announced a substantial $7 billion structured equity financing deal aimed at reducing leverage. This transaction is expected to bring the company's year-end debt leverage ratio down to 3.7x in 2024, surpassing the initial target of 4.2x. The deal was anticipated to close in Q4 2024.
Rogers operates in a highly competitive landscape, primarily challenged by Bell Canada. Bell Canada offers a comparable portfolio of radio and television media assets, alongside wireless, television distribution, and telephone services, particularly in Eastern and Central Canada. The two companies have historically shared a significant market presence, often described as a duopoly in certain regions. Both companies held stakes in Maple Leaf Sports & Entertainment until 2025, when Rogers acquired Bell's stake, becoming the majority owner. Nationally, Rogers also competes with Telus for wireless services.
Rogers' commitment to network infrastructure has garnered significant recognition:
- Awarded Canada's most reliable 5G network by umlaut.
- Recognized as most reliable wireless network by Opensignal.
- Delivered DOCSIS 4.0 modem technology, enabling 4 Gbps download and 1 Gbps upload speeds, a global first.
These network investments continuously enhance customer experience, positioning Rogers as a leader in connectivity and internet speeds.
The acquisition of Shaw Communications Inc. on April 3, 2023, marked a significant milestone, substantially expanding Rogers' operational footprint and subscriber base across Western Canada.
The company's consistent customer acquisition strategy is evident, with the addition of 227,000 combined mobile phone and Internet customers in Q3 extending their market leadership streak to 11 consecutive quarters. CEO Tony Staffieri highlighted a record addition of 227,000 mobile phone and internet subscribers in Q3, contributing to a total of 1.9 million net additions over the past 11 quarters.
Rogers Communications has provided the following guidance for 2025:
- Total service revenue growth: 0% to 3%
- Adjusted EBITDA growth: 0% to 3%
- Capital expenditures: $3.8 billion to $4.0 billion
- Free cash flow: $3.0 billion to $3.2 billion
Revised 2024 Guidance:
Rogers revised its 2024 service revenue guidance downwards to just over 7%, from the previously forecasted 8-10% range. This revision is attributed to softness in media revenue during the fourth quarter of 2024.
A notable development in this year's reporting is the integration of Rogers' 2024 sustainability and social impact disclosure directly into the Management's Discussion and Analysis (MD&A). This integration underscores the company's dedication to embedding sustainability and social impact principles into its core business operations and strategic decision-making.
Rogers Communications continues to solidify its position as Canada's telecommunications leader through sustained strategic investments in network infrastructure, disciplined customer acquisition strategies, and ongoing improvements in operational efficiency across all its business segments.
Clients/Investors to abstain them from dealing in any schemes of unauthorised collective investments / portfolio management, indicative/ guaranteed/fixed returns / payments etc.
Sr. No
Name of KMP
Designation
Mobile Number
Email ID
2.
Mr. Amit Bansal
Designated Director /
Compliance Officer