Rogers Communications Inc (NYSE:RCI) reported fiscal first-quarter 2024 revenue growth of 28% year-over-year to $3.64 billion (4.90 billion Canadian dollars), beating the consensus of $3.58 billion.
The adjusted EPS of $0.73 (CA$0.99) beat the consensus of $0.72.
Total service revenue grew 31% Y/Y to CA$4.36 billion on higher revenue growth in the Cable and Wireless businesses.
Wireless service revenue increased by 9% Y/Y, mainly aided by the cumulative impact of growth in the mobile phone subscriber base and revenue from Shaw Mobile subscribers.
Wireless equipment revenue increased by 4%, primarily due to a continued shift in the product mix towards higher-value devices.
Cable service revenue rose 94% Y/Y, aided by the acquisition of Shaw. Media revenue decreased by 5% Y/Y, due to lower subscriber revenue.
Rogers attracted 98,000 net postpaid mobile phone subscribers, up 3.2% Y/Y, with a churn of 1.10%.
Adjusted EBITDA increased 34% Y/Y to CA$2.21 billion, with margins increasing 210 bps to 45.2% due to improving synergies and efficiencies.
Rogers generated CA$586 million in free cash flow for the quarter, up 58% Y/Y. It held CA$0.8 billion in cash and cash equivalents as of March-end. Capital expenditure rose 19% Y/Y to CA$1.06 billion.
Dividend: The company declared a quarterly dividend of 50 cents on each of its outstanding Class B Non-Voting shares and Class A Voting shares.
"We continued to deliver industry-leading growth in the first quarter, our ninth straight quarter of growth and momentum," said Tony Staffieri, President and CEO.
Rogers Communications stock lost 20% in the last 12 months. Investors can gain exposure to the stock via First Trust VL Dividend (NYSE:FVD) and First Trust NASDAQ Technology Dividend Index Fund (NASDAQ:TDIV).
Price Action: RCI shares are trading lower by 3.7% at $38.12 at the last check Wednesday.
