Yahoo Finance Rogers' revenue jumps nearly 30 per cent, but profit plunges
Rogers Communications Inc.’s revenue jumped by 28 per cent in the first quarter of 2024, driven by growth in its cable and wireless businesses.
The company reported that total revenue increased to $4.90 billion for the quarter ended March 31, a figure that was in line with analyst expectations of $4.92 billion.
Its total service revenue also increased by 31 per cent to $4.36 billion.
“We continued to deliver industry-leading growth in the first quarter, our ninth straight quarter of growth and momentum,” chief executive Tony Staffieri said.
Cable service revenue almost doubled with a 94 per cent jump in the quarter as a result of its acquisition of Shaw Communications Inc., which closed a year ago.
Its wireless service revenue also increased by 9 per cent in the quarter, primarily as a result of its acquired Shaw Mobile subscribers.
The telecom’s net income, however, decreased by 50 per cent to $256 million.
Rogers attributed the decline to higher depreciation and amortization associated with assets acquired through the Shaw transaction and higher finance costs, partially offset by higher adjusted EBITDA. Net income was also impacted by higher restructuring, acquisition and other costs, it said.
This amounts to diluted earnings of $0.46 per share, down from $1 per share from a year ago.
Adjusted net income, however, decreased by only two per cent.
Desjardins analyst Jerome Dubreuil characterized the earnings results as slightly positive, given that the financials were in line with expectations and that the quarter was expected to be “difficult … due to intense competition.”
Rogers said it is looking to divest $1 billion worth of non-core assets, predominantly real estate and data centres, within the year.
This process is taking longer than originally anticipated, chief financial officer Glenn Brandt said, because of softness in the current real estate market.
The company also announced a 10-year agreement with Comcast to bring its latest Xfinity products and technology to Canada.
“Our partnership with Comcast builds on our legacy of bringing Canadians the best networks, entertainment and services in the world,” Staffieri said during Rogers’ annual general meeting, which followed the release of results.
• Email: dpaglinawan@postmedia.com
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