 | 附件99.3 | ||||
羅傑斯通信公司報告了2024年第三季度的業績
越來越多的加拿大人選擇羅傑斯無線和互聯網，而不是選擇其他任何運營商
•Q3和全年迄今的手機和互聯網淨增加量爲22.7萬和50.2萬
•Q3後付費手機淨增長10.1萬；預付費淨增長9.3萬；零售互聯網淨增長3.3萬
•羅傑斯在過去11個季度中，新增了行業最佳的190萬手機和互聯網淨增用戶
持續的紀律加載，強大的執行力，效率提升，行業領先的財務業績和行業最佳利潤率
•無線服務營業收入增加2%，調整後的EBITDA增加5%; 邊際增加220個點子至66%; 綜合ARPU穩定
•有線電視營業收入下降1％；調整後的EBITDA增長5％；邊際提升330個點子至58％
•自由現金流爲$91500萬，增長23%
羅傑斯的網絡領先地位持續
•被Opensignal評爲加拿大最快、最可靠的互聯網。
•獲得umlaut頒發的加拿大最可靠的5g概念網絡獎 和Opensignal頒發的最可靠無線網絡獎
•提供了具有4 Gbps下載速度和1 Gbps上傳速度的DOCSIS 4.0調制解調器技術- 全球首創
羅傑斯宣佈與一家領先的全球金融投資者達成交易，通過創新的70億美元結構性股本融資大幅降低槓桿比率
•現在預計年底的槓桿率將達到3.7倍
•完成受制於最終確定的協議
•預計將在第四季度結束；所得款項將用於償還債務，並進一步加強我們的資產負債表
公司重申2024年展望
•總服務營業收入增長8%至10%；調整後的EBITDA增長12%至15%；資本支出爲38億至40億美元；自由現金流爲29億至31億美元。
多倫多（2024年10月24日）- 羅傑斯通信公司（tsx：RCI.A和RCI.B；紐交所：RCI）今天宣佈了其截至2024年9月30日第三季度的未經審計財務和營運結果。
合併財務亮點
| （以百萬加元計，每股金額除外，未經審計） | 截至9月30日的三個月 | 截至9月30日的九個月 | |||||||||||||||||||||
| 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | ||||||||||||||||||
| 總收入 | 5,129 | 5,092 | 1 | 15,123 | 13,973 | 8 | |||||||||||||||||
| 服務收入總額 | 4,567 | 4,527 | 1 | 13,523 | 12,375 | 9 | |||||||||||||||||
| 調整後 EBITDA 1 | 2,545 | 2,411 | 6 | 7,084 | 6,252 | 13 | |||||||||||||||||
淨收入 | 526 | (99) | n/m | 1,176 | 521 | 126 | |||||||||||||||||
調整後淨收益 1 | 762 | 679 | 12 | 1,925 | 1,776 | 8 | |||||||||||||||||
攤薄後的每股收益（虧損） | $0.98 | ($0.20) | n/m | $2.19 | 0.97 美元 | 126 | |||||||||||||||||
調整後的攤薄後每股收益 1 | $1.42 | 1.27 美元 | 12 | $3.59 | 3.37 美元 | 7 | |||||||||||||||||
| 經營活動提供的現金 | 1,893 | 1,754 | 8 | 4,545 | 3,842 | 18 | |||||||||||||||||
自由現金流 1 | 915 | 745 | 23 | 2,167 | 1,591 | 36 | |||||||||||||||||
n/m - 不具實際意義
1調整後的EBITDA是一個段落度量標準。自由現金流是一個資本管理度量標準。調整後的攤薄每股收益是一種非GAAP比率。調整後的淨利潤是一種非GAAP財務度量標準，並且是調整後的攤薄每股收益的組成部分。請參閱我們Q3 2024的《管理層討論與分析》(MD&A)中的「非GAAP和其他財務度量」，網址爲www.sedarplus.ca，以及本次盈利發佈，以獲取有關這些度量標準的更多信息。這些不是國際財務報告準則（IFRS）下的標準化財務度量標準，可能與其他公司披露的類似財務度量標準不可比較。
| 羅傑斯通信公司。 | 1 | 2024年第三季度 | ||||||
「我們繼續發揚勢頭，取得行業領先的業績，吸引了比其他運營商更多的加拿大人，」總裁兼首席執行官託尼·斯塔夫裏說。"我們在有線和無線電信業務上實現了強勁的市場份額，創紀錄的利潤率，並且我們正按計劃實現全年目標。我爲我們的團隊感到自豪，他們連續第十一個季度取得增長，並在加強資產負債表的同時表現出色。"
戰略亮點
以下列出的五個目標將指導我們的工作和決策，進一步改善我們的運營執行並適時投資以發展我們的核心業務，提供增加的股東價值。以下是本季度的一些亮點。
在全國建造最大、最好的網絡
•於2024年7月，由umlaut評選爲加拿大最可靠的5g概念網絡。
•在2024年7月，Opensignal評爲加拿大速度最快、最可靠的互聯網。
•通過DOCSIS 4.0調制解調器技術試用，實現了4 Gbps的下載速度和1 Gbps的上傳速度。
提供易於使用、可靠的產品和服務
•已在魁北克推出家庭互聯網和電視服務。
•將多千兆速度引入我們互聯網網絡覆蓋的70%區域。
•通過與nova信用合作，推出了一個計劃，幫助新來者建立信用並通過融資獲得新智能手機。
成爲加拿大人的首選
•吸引了22.7萬個淨移動電話和互聯網客戶。
•與加拿大貝爾(BCE Inc.)簽署協議，成爲楓葉體育娛樂(Maple Leaf Sports & Entertainment, MLSE)的大多數所有者。
•在加拿大推出了Bravo，並宣佈計劃爲HGTV、Food Network、Magnolia、Discovery ID和Discovery推出電視頻道。
做一個強大的國內公司，投資加拿大
•投資了97700萬美元用於資本支出，進一步加強和發展我們的網絡。
•宣佈與SenseNet合作，將火災檢測科技帶給社區。
•成爲2024年多倫多國際電影節有史以來的首席贊助商。
成爲我們行業板塊的增長領導者
•增長總服務收入1%，調整後的EBITDA增長6%。
•報告顯示，我們的無線和有線業務擁有行業領先的利潤率。
•自由現金流達到91500萬美元，增長23％，經營活動現金流爲 189300萬美元.
MLSE交易
2024年9月18日，我們宣佈與加拿大貝爾（Bell）達成協議，收購貝爾對楓葉體育娛樂公司（MLSE）間接持有的37.5%股權，購價爲47億美元，視情況調整，以現金支付（MLSE交易）。我們預計將通過私人投資者的資金部分融資購買價格，並且預計MLSE交易的融資不會影響我們的債務槓桿率展望。MLSE交易還將爲貝爾提供續簽其現有的MLSE廣播和贊助權利的長期機會，價格公平市場價。其中包括獲得多倫多楓葉隊區域賽事50%和多倫多猛龍隊50%的內容權利，這些賽事的版權由MLSE控制。MLSE交易受到一定的收盤條件的約束，包括體育聯盟和監管批准。MLSE交易完成後，我們將成爲MLSE最大的持有者，對MLSE擁有75%的控股權。
MLSE擁有多倫多楓葉隊（NHL）、多倫多猛龍隊（NBA）、多倫多足球俱樂部（MLS）、多倫多Argonauts（CFL）、各種小聯盟球隊以及相關房地產資產，例如豐業銀行競技場。MLSE交易將增加我們現有的體育投資組合，包括所有權 多倫多藍鳥隊、羅傑斯中心，以及 Sportsnet.
| Rogers Communications Inc. | 2 | Third Quarter 2024 | ||||||
Quarterly Financial Highlights
Revenue
Total revenue and total service revenue each increased by 1% this quarter, driven by revenue growth in our Wireless and Media businesses.
Wireless service revenue increased by 2% this quarter, primarily as a result of the cumulative impact of growth in our mobile phone subscriber base over the past year. Wireless equipment revenue decreased by 1%, primarily as a result of fewer device upgrades by existing customers.
Cable revenue decreased by 1% this quarter, improving sequentially, as a result of continued competitive promotional activity and declines in our Home Phone and Satellite subscriber bases.
Media revenue increased by 11% this quarter primarily as a result of higher sports-related revenue.
Adjusted EBITDA and margins
Consolidated adjusted EBITDA increased 6% this quarter, and our adjusted EBITDA margin increased by 230 basis points, as a result of full realization of our synergy program associated with the Shaw Transaction together with ongoing cost efficiencies.
Wireless adjusted EBITDA increased by 5%, primarily due to the flow-through impact of higher revenue as discussed above in conjunction with ongoing cost efficiencies. This gave rise to an adjusted EBITDA margin of 66.1%, up 220 basis points.
Cable adjusted EBITDA increased by 5% due to the aforementioned synergy program and ongoing cost efficiencies. This gave rise to an adjusted EBITDA margin of 57.5%, up 330 basis points.
Media adjusted EBITDA increased by 25% this quarter, primarily due to higher revenue as discussed above, partially offset by higher Toronto Blue Jays expenses, including game day-related costs.
Net income and adjusted net income
Net income increased by $625 million this quarter to $526 million, primarily as a result of the $422 million loss recognized last year related to an obligation to purchase at fair value the non-controlling interest in one of our joint ventures' investments, higher adjusted EBITDA, and lower restructuring, acquisition and other costs, partially offset by higher income tax expense. Adjusted net income increased by 12% this quarter, primarily as a result of higher adjusted EBITDA.
Cash flow and available liquidity
This quarter, we generated cash provided by operating activities of $1,893 million (2023 - $1,754 million) and free cash flow of $915 million (2023 - $745 million), both of which increased primarily as a result of higher adjusted EBITDA.
As at September 30, 2024, we had $4.8 billion of available liquidity2 (December 31, 2023 - $5.9 billion), consisting of $0.8 billion in cash and cash equivalents and $4.0 billion available under our bank and other credit facilities.
Our debt leverage ratio2 as at September 30, 2024 was 4.6 (December 31, 2023 - 5.0, or 4.7 on an as adjusted basis to include trailing 12-month adjusted EBITDA of a combined Rogers and Shaw as if the Shaw Transaction had closed on January 1, 2023). See "Financial Condition" for more information.
We also returned $266 million in dividends to shareholders this quarter and we declared a $0.50 per share dividend on October 23, 2024.
2 Available liquidity and debt leverage ratio are capital management measures. Pro forma debt leverage ratio is a non-GAAP ratio. Pro forma trailing 12-month adjusted EBITDA is a non-GAAP financial measure and is a component of pro forma debt leverage ratio. See "Non-GAAP and Other Financial Measures" in our Q3 2024 MD&A for more information about these measures. These are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other companies. See "Financial Condition" in our Q3 2024 MD&A for a reconciliation of available liquidity.
| Rogers Communications Inc. | 3 | Third Quarter 2024 | ||||||
About this Earnings Release
This earnings release contains important information about our business and our performance for the three and nine months ended September 30, 2024, as well as forward-looking information (see "About Forward-Looking Information") about future periods. This earnings release should be read in conjunction with our Third Quarter 2024 Interim Condensed Consolidated Financial Statements (Third Quarter 2024 Interim Financial Statements) and notes thereto, which have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as issued by the International Accounting Standards Board (IASB); our Third Quarter 2024 MD&A; our 2023 Annual MD&A; our 2023 Annual Audited Consolidated Financial Statements and notes thereto, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB; and our other recent filings with Canadian and US securities regulatory authorities, including our Annual Information Form, which are available on SEDAR+ at sedarplus.ca or EDGAR at sec.gov, respectively.
For more information about Rogers, including product and service offerings, competitive market and industry trends, our overarching strategy, key performance drivers, and objectives, see "Understanding Our Business", "Our Strategy, Key Performance Drivers, and Strategic Highlights", and "Capability to Deliver Results" in our 2023 Annual MD&A. References in this earnings release to the Shaw Transaction are to our acquisition of Shaw Communications Inc. (Shaw) on April 3, 2023. For additional details regarding the Shaw Transaction, see "Shaw Transaction" in our 2023 Annual MD&A and our 2023 Annual Audited Consolidated Financial Statements.
We, us, our, Rogers, Rogers Communications, and the Company refer to Rogers Communications Inc. and its subsidiaries. RCI refers to the legal entity Rogers Communications Inc., not including its subsidiaries. Rogers also holds interests in various investments and ventures.
All dollar amounts in this earnings release are in Canadian dollars unless otherwise stated and are unaudited. All percentage changes are calculated using the rounded numbers as they appear in the tables. This earnings release is current as at October 23, 2024 and was approved by the Audit and Risk Committee of RCI's Board of Directors (the Board) on that date.
In this earnings release, this quarter, the quarter, or third quarter refer to the three months ended September 30, 2024, first quarter refers to the three months ended March 31, 2024, second quarter refers to the three months ended June 30, 2024, third quarter refers to the three months ended September 30, 2024 and year to date refers to the nine months ended September 30, 2024. All results commentary is compared to the equivalent period in 2023 or as at December 31, 2023, as applicable, unless otherwise indicated.
Trademarks in this earnings release are owned or used under licence by Rogers Communications Inc. or an affiliate. This earnings release may also include trademarks of other parties. The trademarks referred to in this earnings release may be listed without the ™ symbols. ©2024 Rogers Communications
Reportable segments
We report our results of operations in three reportable segments. Each segment and the nature of its business is as follows:
| Segment | Principal activities | ||||
| Wireless | Wireless telecommunications operations for Canadian consumers and businesses. | ||||
| Cable | Cable telecommunications operations, including Internet, television and other video (Video), Satellite, telephony (Home Phone), and home monitoring services for Canadian consumers and businesses, and network connectivity through our fibre network and data centre assets to support a range of voice, data, networking, hosting, and cloud-based services for the business, public sector, and carrier wholesale markets. | ||||
| Media | A diversified portfolio of media properties, including sports media and entertainment, television and radio broadcasting, specialty channels, multi-platform shopping, and digital media. | ||||
Wireless and Cable are operated by our wholly owned subsidiary, Rogers Communications Canada Inc. (RCCI), and certain other wholly owned subsidiaries. Media is operated by our wholly owned subsidiary, Rogers Media Inc., and its subsidiaries.
| Rogers Communications Inc. | 4 | Third Quarter 2024 | ||||||
Summary of Consolidated Financial Results
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||
| (In millions of dollars, except margins and per share amounts) | 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | |||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Wireless | 2,620 | 2,584 | 1 | 7,614 | 7,354 | 4 | |||||||||||||||||
| Cable | 1,970 | 1,993 | (1) | 5,893 | 5,023 | 17 | |||||||||||||||||
| Media | 653 | 586 | 11 | 1,868 | 1,777 | 5 | |||||||||||||||||
| Corporate items and intercompany eliminations | (114) | (71) | 61 | (252) | (181) | 39 | |||||||||||||||||
| Revenue | 5,129 | 5,092 | 1 | 15,123 | 13,973 | 8 | |||||||||||||||||
Total service revenue 1 | 4,567 | 4,527 | 1 | 13,523 | 12,375 | 9 | |||||||||||||||||
| Adjusted EBITDA | |||||||||||||||||||||||
| Wireless | 1,365 | 1,294 | 5 | 3,945 | 3,695 | 7 | |||||||||||||||||
| Cable | 1,133 | 1,080 | 5 | 3,349 | 2,663 | 26 | |||||||||||||||||
| Media | 134 | 107 | 25 | 31 | 73 | (58) | |||||||||||||||||
| Corporate items and intercompany eliminations | (87) | (70) | 24 | (241) | (179) | 35 | |||||||||||||||||
Adjusted EBITDA | 2,545 | 2,411 | 6 | 7,084 | 6,252 | 13 | |||||||||||||||||
Adjusted EBITDA margin 2 | 49.6 | % | 47.3 | % | 2.3 | pts | 46.8 | % | 44.7 | % | 2.1 | pts | |||||||||||
| Net income (loss) | 526 | (99) | n/m | 1,176 | 521 | 126 | |||||||||||||||||
| Basic earnings (loss) per share | $0.99 | ($0.19) | n/m | $2.21 | $1.00 | 121 | |||||||||||||||||
| Diluted earnings (loss) per share | $0.98 | ($0.20) | n/m | $2.19 | $0.97 | 126 | |||||||||||||||||
Adjusted net income 2 | 762 | 679 | 12 | 1,925 | 1,776 | 8 | |||||||||||||||||
Adjusted basic earnings per share 2 | $1.43 | $1.28 | 12 | $3.61 | $3.41 | 6 | |||||||||||||||||
Adjusted diluted earnings per share | $1.42 | $1.27 | 12 | $3.59 | $3.37 | 7 | |||||||||||||||||
| Capital expenditures | 977 | 1,017 | (4) | 3,034 | 2,988 | 2 | |||||||||||||||||
| Cash provided by operating activities | 1,893 | 1,754 | 8 | 4,545 | 3,842 | 18 | |||||||||||||||||
| Free cash flow | 915 | 745 | 23 | 2,167 | 1,591 | 36 | |||||||||||||||||
1 As defined. See "Key Performance Indicators".
2 Adjusted EBITDA margin is a supplementary financial measure. Adjusted basic earnings per share is a non-GAAP ratio. Adjusted net income is a non-GAAP financial measure and is a component of adjusted basic earnings per share. These are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other companies. See "Non-GAAP and Other Financial Measures" in our Q3 2024 MD&A for more information about each of these measures, available at www.sedarplus.ca.
| Rogers Communications Inc. | 5 | Third Quarter 2024 | ||||||
Results of our Reportable Segments
WIRELESS
Wireless Financial Results
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||
| (In millions of dollars, except margins) | 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | |||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Service revenue | 2,066 | 2,026 | 2 | 6,050 | 5,782 | 5 | |||||||||||||||||
| Equipment revenue | 554 | 558 | (1) | 1,564 | 1,572 | (1) | |||||||||||||||||
| Revenue | 2,620 | 2,584 | 1 | 7,614 | 7,354 | 4 | |||||||||||||||||
Operating costs | |||||||||||||||||||||||
| Cost of equipment | 545 | 541 | 1 | 1,576 | 1,550 | 2 | |||||||||||||||||
Other operating costs | 710 | 749 | (5) | 2,093 | 2,109 | (1) | |||||||||||||||||
Operating costs | 1,255 | 1,290 | (3) | 3,669 | 3,659 | — | |||||||||||||||||
| Adjusted EBITDA | 1,365 | 1,294 | 5 | 3,945 | 3,695 | 7 | |||||||||||||||||
Adjusted EBITDA margin 1 | 66.1 | % | 63.9 | % | 2.2 | pts | 65.2 | % | 63.9 | % | 1.3 | pts | |||||||||||
| Capital expenditures | 350 | 381 | (8) | 1,150 | 1,291 | (11) | |||||||||||||||||
1 Calculated using service revenue.
Wireless Subscriber Results 1
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||
| (In thousands, except churn and mobile phone ARPU) | 2024 | 2023 | Chg | 2024 | 2023 | Chg | |||||||||||||||||
Postpaid mobile phone 2 | |||||||||||||||||||||||
| Gross additions | 459 | 556 | (97) | 1,353 | 1,304 | 49 | |||||||||||||||||
| Net additions | 101 | 225 | (124) | 311 | 490 | (179) | |||||||||||||||||
Total postpaid mobile phone subscribers 3 | 10,699 | 10,332 | 367 | 10,699 | 10,332 | 367 | |||||||||||||||||
| Churn (monthly) | 1.12 | % | 1.08 | % | 0.04 | pts | 1.10 | % | 0.92 | % | 0.18 | pts | |||||||||||
Prepaid mobile phone 4 | |||||||||||||||||||||||
| Gross additions | 185 | 263 | (78) | 417 | 711 | (294) | |||||||||||||||||
| Net additions | 93 | 36 | 57 | 106 | 23 | 83 | |||||||||||||||||
Total prepaid mobile phone subscribers 3 | 1,161 | 1,278 | (117) | 1,161 | 1,278 | (117) | |||||||||||||||||
| Churn (monthly) | 2.80 | % | 6.00 | % | (3.20 | pts) | 3.29 | % | 6.10 | % | (2.81 | pts) | |||||||||||
Mobile phone ARPU (monthly) 5 | $58.57 | $58.83 | ($0.26) | $57.95 | $57.76 | $0.19 | |||||||||||||||||
1 Subscriber counts and subscriber churn are key performance indicators. See "Key Performance Indicators".
2 Effective January 1, 2024, and on a prospective basis, we adjusted our postpaid mobile phone subscriber base to remove 110,000 Cityfone subscribers as we stopped selling new plans for this service as of that date. Given this, we believe this adjustment more meaningfully reflects the underlying organic subscriber performance of our postpaid mobile phone business.
3 As at end of period.
4 Effective January 1, 2024, and on a prospective basis, we adjusted our prepaid mobile phone subscriber base to remove 56,000 Fido prepaid subscribers as we stopped selling new plans for this service as of that date. Given this, we believe this adjustment more meaningfully reflects the underlying organic subscriber performance of our prepaid mobile phone business.
5 Mobile phone ARPU is a supplementary financial measure. See "Non-GAAP and Other Financial Measures" in our Q3 2024 MD&A for more information about this measure, available at www.sedarplus.ca.
Service revenue
The 2% increase in service revenue this quarter and 5% increase year to date were primarily a result of the cumulative impact of growth in our mobile phone subscriber base over the past year, including our evolving mobile phone plans that increasingly bundle more services in the monthly service fee. The year to date increase was also affected by the impact of the Shaw Mobile subscribers acquired through the Shaw Transaction in April 2023.
Mobile phone ARPU remained stable this quarter and year to date.
| Rogers Communications Inc. | 6 | Third Quarter 2024 | ||||||
The continued robust postpaid gross additions this quarter and year to date were a result of sales execution in a growing Canadian market. The decrease in gross additions this quarter was a result of a less active market and our focus on attracting subscribers to our premium 5G Rogers brand.
Equipment revenue
The 1% decreases in equipment revenue this quarter and year to date were primarily a result of:
•fewer device upgrades by existing customers; partially offset by
•an increase in new subscribers purchasing devices; and
•a continued shift in the product mix towards higher-value devices.
Operating costs
Cost of equipment
The 1% increase in the cost of equipment this quarter and 2% increase year to date were a result of the equipment revenue changes discussed above.
Other operating costs
The 5% decrease in other operating costs this quarter and 1% decrease year to date were primarily a result of:
•lower costs associated with productivity and efficiency initiatives; partially offset by
•higher costs associated with our expanded network.
Adjusted EBITDA
The 5% increase in adjusted EBITDA this quarter and 7% increase year to date were a result of the revenue and expense changes discussed above.
| Rogers Communications Inc. | 7 | Third Quarter 2024 | ||||||
CABLE
Cable Financial Results
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||
| (In millions of dollars, except margins) | 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | |||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Service revenue | 1,962 | 1,986 | (1) | 5,857 | 4,997 | 17 | |||||||||||||||||
| Equipment revenue | 8 | 7 | 14 | 36 | 26 | 38 | |||||||||||||||||
| Revenue | 1,970 | 1,993 | (1) | 5,893 | 5,023 | 17 | |||||||||||||||||
Operating costs | 837 | 913 | (8) | 2,544 | 2,360 | 8 | |||||||||||||||||
| Adjusted EBITDA | 1,133 | 1,080 | 5 | 3,349 | 2,663 | 26 | |||||||||||||||||
| Adjusted EBITDA margin | 57.5 | % | 54.2 | % | 3.3 | pts | 56.8 | % | 53.0 | % | 3.8 | pts | |||||||||||
| Capital expenditures | 511 | 560 | (9) | 1,500 | 1,417 | 6 | |||||||||||||||||
Cable Subscriber Results 1
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||
| (In thousands, except ARPA and penetration) | 2024 | 2023 | Chg | 2024 | 2023 | Chg | |||||||||||||||||
Homes passed 2 | 10,145 | 9,869 | 276 | 10,145 | 9,869 | 276 | |||||||||||||||||
| Customer relationships | |||||||||||||||||||||||
| Net additions (losses) | 13 | (7) | 20 | 33 | (1) | 34 | |||||||||||||||||
Total customer relationships 2 | 4,669 | 4,780 | (111) | 4,669 | 4,780 | (111) | |||||||||||||||||
ARPA (monthly) 3 | $140.36 | $138.46 | $1.90 | $140.05 | $142.20 | ($2.15) | |||||||||||||||||
Penetration 2 | 46.0 | % | 48.4 | % | (2.4 | pts) | 46.0 | % | 48.4 | % | (2.4 | pts) | |||||||||||
| Retail Internet | |||||||||||||||||||||||
| Net additions | 33 | 18 | 15 | 85 | 57 | 28 | |||||||||||||||||
Total retail Internet subscribers 2 | 4,247 | 4,302 | (55) | 4,247 | 4,302 | (55) | |||||||||||||||||
| Video | |||||||||||||||||||||||
| Net (losses) additions | (39) | 23 | (62) | (99) | 27 | (126) | |||||||||||||||||
Total Video subscribers 2 | 2,652 | 2,755 | (103) | 2,652 | 2,755 | (103) | |||||||||||||||||
Home Monitoring | |||||||||||||||||||||||
| Net additions (losses) | 19 | (2) | 21 | 31 | (11) | 42 | |||||||||||||||||
Total Home Monitoring subscribers 2 | 120 | 90 | 30 | 120 | 90 | 30 | |||||||||||||||||
| Home Phone | |||||||||||||||||||||||
| Net losses | (29) | (36) | 7 | (95) | (78) | (17) | |||||||||||||||||
Total Home Phone subscribers 2 | 1,534 | 1,648 | (114) | 1,534 | 1,648 | (114) | |||||||||||||||||
1 Subscriber results are key performance indicators. See "Key Performance Indicators".
2 As at end of period.
3 ARPA is a supplementary financial measure. See "Non-GAAP and Other Financial Measures" in our Q3 2024 MD&A for more information about this measure, available at www.sedarplus.ca.
Service revenue
The 1% decrease in service revenue this quarter was a result of:
•continued competitive promotional activity; and
•declines in our Home Phone, Video, and Satellite subscriber bases.
The 17% increase in service revenue year to date was primarily a result of the completion of the Shaw Transaction in April 2023, which contributed an incremental approximately $1 billion in the first quarter, partially offset by the factors discussed above.
The lower ARPA this year was primarily a result of competitive promotional activity.
| Rogers Communications Inc. | 8 | Third Quarter 2024 | ||||||
Operating costs
The 8% decrease in operating costs this quarter was a result of the full realization of our synergy targets associated with the Shaw Transaction and ongoing cost efficiency initiatives. The 8% increase year to date reflects a full nine months of results for the Shaw Transaction, which closed in April 2023.
Adjusted EBITDA
The 5% increase in adjusted EBITDA this quarter and 26% increase year to date were a result of the service revenue and expense changes discussed above.
| Rogers Communications Inc. | 9 | Third Quarter 2024 | ||||||
MEDIA
Media Financial Results
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||
| (In millions of dollars, except margins) | 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | |||||||||||||||||
| Revenue | 653 | 586 | 11 | 1,868 | 1,777 | 5 | |||||||||||||||||
Operating costs | 519 | 479 | 8 | 1,837 | 1,704 | 8 | |||||||||||||||||
| Adjusted EBITDA | 134 | 107 | 25 | 31 | 73 | (58) | |||||||||||||||||
| Adjusted EBITDA margin | 20.5 | % | 18.3 | % | 2.2 | pts | 1.7 | % | 4.1 | % | (2.4 | pts) | |||||||||||
| Capital expenditures | 37 | 33 | 12 | 205 | 137 | 50 | |||||||||||||||||
Revenue
The 11% increase in revenue this quarter and 5% increase year to date were a result of:
•higher sports-related revenue, driven by higher subscriber revenue and higher revenue at the Toronto Blue Jays; partially offset by
•lower Today's Shopping Choice revenue.
Operating costs
The 8% increases in operating costs this quarter and year to date were a result of:
•higher Toronto Blue Jays expenses, including game day-related costs; partially offset by
•lower Today's Shopping Choice costs in line with lower revenue.
Adjusted EBITDA
The increase in adjusted EBITDA this quarter and decrease year to date were a result of the revenue and expense changes discussed above.
| Rogers Communications Inc. | 10 | Third Quarter 2024 | ||||||
CAPITAL EXPENDITURES
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||
| (In millions of dollars, except capital intensity) | 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | |||||||||||||||||
| Wireless | 350 | 381 | (8) | 1,150 | 1,291 | (11) | |||||||||||||||||
| Cable | 511 | 560 | (9) | 1,500 | 1,417 | 6 | |||||||||||||||||
| Media | 37 | 33 | 12 | 205 | 137 | 50 | |||||||||||||||||
| Corporate | 79 | 43 | 84 | 179 | 143 | 25 | |||||||||||||||||
Capital expenditures 1 | 977 | 1,017 | (4) | 3,034 | 2,988 | 2 | |||||||||||||||||
Capital intensity 2 | 19.0 | % | 20.0 | % | (1.0 | pts) | 20.1 | % | 21.4 | % | (1.3 | pts) | |||||||||||
1 Includes additions to property, plant and equipment net of proceeds on disposition, but does not include expenditures for spectrum licences, additions to right-of-use assets, or assets acquired through business combinations.
2 Capital intensity is a supplementary financial measure. See "Non-GAAP and Other Financial Measures" in our Q3 2024 MD&A for more information about this measure, available at www.sedarplus.ca.
One of our objectives is to build the biggest and best networks in the country. As we continually work towards this, we once again plan to spend more on our wireless and wireline networks this year than we have in the past several years. We continue to expand the reach and capacity of our 5G network (the largest 5G network in Canada as at September 30, 2024) across the country. We also continue to invest in fibre deployments, including fibre-to-the-home (FTTH), in our cable network and we are expanding our network footprint to reach more homes and businesses, including in rural, remote, and Indigenous communities.
These investments will strengthen network resilience and stability and will help us bridge the digital divide by expanding our network further into rural and underserved areas through participation in various programs and projects.
Wireless
The decreases in capital expenditures in Wireless this quarter and year to date were due to the timing of investments. We continue to make investments in our network development and 5G deployment to expand our wireless network. The ongoing deployment of 3500 MHz spectrum and the commencement of 3800 MHz spectrum deployment continue to augment the capacity and resilience of our earlier 5G deployments in the 600 MHz spectrum band.
Cable
The decrease in capital expenditures in Cable this quarter was due to the timing of investments. The increase year to date reflects a full nine months of results for the Shaw Transaction. Capital expenditures reflect continued investments in our infrastructure, including additional fibre deployments to increase our FTTH distribution. These investments incorporate the latest technologies to help deliver more bandwidth and an enhanced customer experience as we progress in our connected home roadmap, including service footprint expansion and upgrades to our DOCSIS 3.1 platform to evolve to DOCSIS 4.0, offering increased network resilience, stability, and faster download speeds over time.
Media
The year to date increase in Media capital expenditures was a result of higher Toronto Blue Jays stadium infrastructure-related expenditures associated with the second phase of the Rogers Centre modernization project.
Capital intensity
Capital intensity decreased this quarter and year to date as a result of the revenue and capital expenditure changes discussed above.
| Rogers Communications Inc. | 11 | Third Quarter 2024 | ||||||
Review of Consolidated Performance
This section discusses our consolidated net income and other income and expenses that do not form part of the segment discussions above.
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||
| (In millions of dollars) | 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | |||||||||||||||||
| Adjusted EBITDA | 2,545 | 2,411 | 6 | 7,084 | 6,252 | 13 | |||||||||||||||||
| Deduct (add): | |||||||||||||||||||||||
| Depreciation and amortization | 1,157 | 1,160 | — | 3,442 | 2,949 | 17 | |||||||||||||||||
| Restructuring, acquisition and other | 91 | 213 | (57) | 323 | 599 | (46) | |||||||||||||||||
| Finance costs | 568 | 600 | (5) | 1,724 | 1,479 | 17 | |||||||||||||||||
| Other expense | 2 | 426 | (100) | 5 | 381 | (99) | |||||||||||||||||
| Income tax expense | 201 | 111 | 81 | 414 | 323 | 28 | |||||||||||||||||
| Net income (loss) | 526 | (99) | n/m | 1,176 | 521 | 126 | |||||||||||||||||
Depreciation and amortization
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||
| (In millions of dollars) | 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | |||||||||||||||||
| Depreciation of property, plant and equipment | 923 | 925 | — | 2,731 | 2,393 | 14 | |||||||||||||||||
| Depreciation of right-of-use assets | 97 | 92 | 5 | 304 | 264 | 15 | |||||||||||||||||
| Amortization | 137 | 143 | (4) | 407 | 292 | 39 | |||||||||||||||||
| Total depreciation and amortization | 1,157 | 1,160 | — | 3,442 | 2,949 | 17 | |||||||||||||||||
The year to date increase in depreciation and amortization was primarily a result of the assets acquired through the Shaw Transaction.
Restructuring, acquisition and other
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||
| (In millions of dollars) | 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Restructuring and other | 54 | 175 | 232 | 340 | |||||||||||||
| Shaw Transaction-related costs | 37 | 38 | 91 | 259 | |||||||||||||
| Total restructuring, acquisition and other | 91 | 213 | 323 | 599 | |||||||||||||
The Shaw Transaction-related costs in 2023 and 2024 consisted of incremental costs supporting acquisition (in 2023) and integration activities (in 2023 and 2024) related to the Shaw Transaction. In the first half of 2023, these costs primarily reflected closing-related fees, the Shaw Transaction-related employee retention program, and the cost of the tangible benefits package related to the broadcasting portion of the Shaw Transaction.
The restructuring and other costs in 2023 and 2024 were primarily severance and other departure-related costs associated with the targeted restructuring of our employee base, which also included costs associated with voluntary departure programs. These costs also included costs related to real estate rationalization programs and transaction costs related to other completed and potential acquisitions.
| Rogers Communications Inc. | 12 | Third Quarter 2024 | ||||||
Finance costs
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||
| (In millions of dollars) | 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | |||||||||||||||||
Total interest on borrowings 1 | 505 | 535 | (6) | 1,525 | 1,450 | 5 | |||||||||||||||||
| Interest earned on restricted cash and cash equivalents | — | — | — | — | (149) | (100) | |||||||||||||||||
| Interest on borrowings, net | 505 | 535 | (6) | 1,525 | 1,301 | 17 | |||||||||||||||||
| Interest on lease liabilities | 34 | 30 | 13 | 103 | 80 | 29 | |||||||||||||||||
Interest on post-employment benefits | (1) | (3) | (67) | (3) | (10) | (70) | |||||||||||||||||
| (Gain) loss on foreign exchange | (32) | 143 | n/m | 107 | 16 | n/m | |||||||||||||||||
| Change in fair value of derivative instruments | 28 | (136) | n/m | (94) | (3) | n/m | |||||||||||||||||
| Capitalized interest | (8) | (11) | (27) | (30) | (28) | 7 | |||||||||||||||||
| Deferred transaction costs and other | 42 | 42 | — | 116 | 123 | (6) | |||||||||||||||||
| Total finance costs | 568 | 600 | (5) | 1,724 | 1,479 | 17 | |||||||||||||||||
1 Interest on borrowings includes interest on short-term borrowings and on long-term debt.
Interest on borrowings, net
The 17% increase in net interest on borrowings year to date was primarily a result of:
•a reduction in interest earned on restricted cash and cash equivalents, as we used these funds to partially fund the Shaw Transaction on April 3, 2023; and
•interest expense associated with the long-term debt assumed through the Shaw Transaction; partially offset by
•the repayment at maturity of senior notes in March 2023, October 2023, November 2023, January 2024, and March 2024 at different underlying interest rates; and
•lower interest expense associated with refinancing a significant portion of the borrowings under our term loan facility with senior notes issued in September 2023 and February 2024.
Other expense (income)
The decreases in other expense this quarter and year to date were a result of a $422 million loss related to the change in the value of an obligation to purchase at fair value the non-controlling interest in one of our joint ventures' investments recorded in the prior year.
Income tax expense
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||
| (In millions of dollars, except tax rates) | 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Statutory income tax rate | 26.2 | % | 26.2 | % | 26.2 | % | 26.2 | % | |||||||||
| Income before income tax expense | 727 | 12 | 1,590 | 844 | |||||||||||||
| Computed income tax expense | 190 | 3 | 417 | 221 | |||||||||||||
| Increase (decrease) in income tax expense resulting from: | |||||||||||||||||
| Non-deductible (taxable) stock-based compensation | 4 | (5) | (6) | (2) | |||||||||||||
| Non-(taxable) deductible portion of equity (income) losses | — | 2 | 1 | (2) | |||||||||||||
| Non-taxable income from security investments | — | (4) | — | (10) | |||||||||||||
| Non-deductible loss on joint venture's non-controlling interest purchase obligation | — | 111 | — | 111 | |||||||||||||
| Other items | 7 | 4 | 2 | 5 | |||||||||||||
| Total income tax expense | 201 | 111 | 414 | 323 | |||||||||||||
| Effective income tax rate | 27.6 | % | n/m | 26.0 | % | 38.3 | % | ||||||||||
| Cash income taxes paid | 156 | 125 | 388 | 400 | |||||||||||||
Cash income taxes paid increased this quarter and decreased year to date due to the timing of installment payments.
| Rogers Communications Inc. | 13 | Third Quarter 2024 | ||||||
Net income (loss)
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||
| (In millions of dollars, except per share amounts) | 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | |||||||||||||||||
| Net income (loss) | 526 | (99) | n/m | 1,176 | 521 | 126 | |||||||||||||||||
| Basic earnings (loss) per share | $0.99 | ($0.19) | n/m | $2.21 | $1.00 | 121 | |||||||||||||||||
| Diluted earnings (loss) per share | $0.98 | ($0.20) | n/m | $2.19 | $0.97 | 126 | |||||||||||||||||
Adjusted net income
We calculate adjusted net income from adjusted EBITDA as follows:
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||
| (In millions of dollars, except per share amounts) | 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | |||||||||||||||||
| Adjusted EBITDA | 2,545 | 2,411 | 6 | 7,084 | 6,252 | 13 | |||||||||||||||||
| Deduct: | |||||||||||||||||||||||
Depreciation and amortization 1 | 930 | 897 | 4 | 2,753 | 2,434 | 13 | |||||||||||||||||
| Finance costs | 568 | 600 | (5) | 1,724 | 1,479 | 17 | |||||||||||||||||
Other expense (income) 2 | 2 | 4 | (50) | 5 | (41) | n/m | |||||||||||||||||
Income tax expense 3 | 283 | 231 | 23 | 677 | 604 | 12 | |||||||||||||||||
Adjusted net income 1 | 762 | 679 | 12 | 1,925 | 1,776 | 8 | |||||||||||||||||
| Adjusted basic earnings per share | $1.43 | $1.28 | 12 | $3.61 | $3.41 | 6 | |||||||||||||||||
| Adjusted diluted earnings per share | $1.42 | $1.27 | 12 | $3.59 | $3.37 | 7 | |||||||||||||||||
1 Our calculation of adjusted net income excludes depreciation and amortization on the fair value increment recognized on acquisition of Shaw Transaction-related property, plant and equipment and intangible assets. For purposes of calculating adjusted net income, we believe the magnitude of this depreciation and amortization, which was significantly affected by the size of the Shaw Transaction, may have no correlation to our current and ongoing operating results and affects comparability between certain periods. Depreciation and amortization excludes depreciation and amortization on Shaw Transaction-related property, plant and equipment and intangible assets for the three and nine months ended September 30, 2024 of $227 million and $689 million (2023 - $263 million and $515 million). Adjusted net income includes depreciation and amortization on the acquired Shaw property, plant and equipment and intangible assets based on Shaw's historical cost and depreciation policies.
2 Other expense (income) for the three and nine months ended September 30, 2023 excludes a $422 million loss related to an obligation to purchase at fair value the non-controlling interest in one of our joint ventures' investments.
3 Income tax expense excludes recoveries of $82 million and $263 million (2023 - recoveries of $120 million and $281 million) for the three and nine months ended September 30, 2024 related to the income tax impact for adjusted items.
| Rogers Communications Inc. | 14 | Third Quarter 2024 | ||||||
Key Performance Indicators
We measure the success of our strategy using a number of key performance indicators that are defined and discussed in our 2023 Annual MD&A and this earnings release. We believe these key performance indicators allow us to appropriately measure our performance against our operating strategy and against the results of our peers and competitors. The following key performance indicators, some of which are supplementary financial measures (see "Non-GAAP and Other Financial Measures"), are not measurements in accordance with IFRS. They include:
•subscriber counts;
•Wireless;
•Cable; and
•homes passed (Cable);
•Wireless subscriber churn (churn);
•Wireless mobile phone average revenue per user
(ARPU);
(ARPU);
•Cable average revenue per account (ARPA);
•Cable customer relationships;
•Cable market penetration (penetration);
•capital intensity; and
•total service revenue.
Non-GAAP and Other Financial Measures
Reconciliation of adjusted EBITDA
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||
| (In millions of dollars) | 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income (loss) | 526 | (99) | 1,176 | 521 | |||||||||||||
| Add: | |||||||||||||||||
| Income tax expense | 201 | 111 | 414 | 323 | |||||||||||||
| Finance costs | 568 | 600 | 1,724 | 1,479 | |||||||||||||
| Depreciation and amortization | 1,157 | 1,160 | 3,442 | 2,949 | |||||||||||||
| EBITDA | 2,452 | 1,772 | 6,756 | 5,272 | |||||||||||||
| Add (deduct): | |||||||||||||||||
| Other expense | 2 | 426 | 5 | 381 | |||||||||||||
| Restructuring, acquisition and other | 91 | 213 | 323 | 599 | |||||||||||||
| Adjusted EBITDA | 2,545 | 2,411 | 7,084 | 6,252 | |||||||||||||
Reconciliation of pro forma trailing 12-month adjusted EBITDA
| As at December 31 | |||||
| (In millions of dollars) | 2023 | ||||
Trailing 12-month adjusted EBITDA - 12 months ended December 31, 2023 | 8,581 | ||||
| Add (deduct): | |||||
| Acquired Shaw business adjusted EBITDA - January 2023 to March 2023 | 514 | ||||
Pro forma trailing 12-month adjusted EBITDA | 9,095 | ||||
Reconciliation of adjusted net income
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||
| (In millions of dollars) | 2024 | 2023 | 2024 | 2023 | |||||||||||||
Net income (loss) | 526 | (99) | 1,176 | 521 | |||||||||||||
| Add (deduct): | |||||||||||||||||
| Restructuring, acquisition and other | 91 | 213 | 323 | 599 | |||||||||||||
| Depreciation and amortization on fair value increment of Shaw Transaction-related assets | 227 | 263 | 689 | 515 | |||||||||||||
Loss on non-controlling interest purchase obligation | — | 422 | — | 422 | |||||||||||||
| Income tax impact of above items | (82) | (120) | (263) | (281) | |||||||||||||
| Adjusted net income | 762 | 679 | 1,925 | 1,776 | |||||||||||||
| Rogers Communications Inc. | 15 | Third Quarter 2024 | ||||||
Reconciliation of free cash flow
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||
| (In millions of dollars) | 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Cash provided by operating activities | 1,893 | 1,754 | 4,545 | 3,842 | |||||||||||||
| Add (deduct): | |||||||||||||||||
| Capital expenditures | (977) | (1,017) | (3,034) | (2,988) | |||||||||||||
| Interest on borrowings, net and capitalized interest | (497) | (524) | (1,495) | (1,273) | |||||||||||||
| Interest paid, net | 593 | 512 | 1,622 | 1,324 | |||||||||||||
| Restructuring, acquisition and other | 91 | 213 | 323 | 599 | |||||||||||||
| Program rights amortization | (13) | (14) | (52) | (58) | |||||||||||||
| Change in net operating assets and liabilities | (200) | (185) | 209 | 258 | |||||||||||||
Other adjustments 1 | 25 | 6 | 49 | (113) | |||||||||||||
| Free cash flow | 915 | 745 | 2,167 | 1,591 | |||||||||||||
1 Consists of post-employment benefit contributions, net of expense, cash flows relating to other operating activities, and other investment income from our financial statements.
| Rogers Communications Inc. | 16 | Third Quarter 2024 | ||||||
Rogers Communications Inc.
Interim Condensed Consolidated Statements of Income
(In millions of Canadian dollars, except per share amounts, unaudited)
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Revenue | 5,129 | 5,092 | 15,123 | 13,973 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Operating costs | 2,584 | 2,681 | 8,039 | 7,721 | |||||||||||||
| Depreciation and amortization | 1,157 | 1,160 | 3,442 | 2,949 | |||||||||||||
| Restructuring, acquisition and other | 91 | 213 | 323 | 599 | |||||||||||||
| Finance costs | 568 | 600 | 1,724 | 1,479 | |||||||||||||
| Other expense | 2 | 426 | 5 | 381 | |||||||||||||
| Income before income tax expense | 727 | 12 | 1,590 | 844 | |||||||||||||
| Income tax expense | 201 | 111 | 414 | 323 | |||||||||||||
| Net income (loss) for the period | 526 | (99) | 1,176 | 521 | |||||||||||||
Earnings (loss) per share: | |||||||||||||||||
| Basic | $0.99 | ($0.19) | $2.21 | $1.00 | |||||||||||||
| Diluted | $0.98 | ($0.20) | $2.19 | $0.97 | |||||||||||||
| Rogers Communications Inc. | 17 | Third Quarter 2024 | ||||||
Rogers Communications Inc.
Interim Condensed Consolidated Statements of Financial Position
(In millions of Canadian dollars, unaudited)
| As at September 30 | As at December 31 | |||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 802 | 800 | ||||||
| Accounts receivable | 4,903 | 4,996 | ||||||
| Inventories | 472 | 456 | ||||||
| Current portion of contract assets | 183 | 163 | ||||||
| Other current assets | 835 | 1,202 | ||||||
| Current portion of derivative instruments | 77 | 80 | ||||||
| Assets held for sale | 137 | 137 | ||||||
| Total current assets | 7,409 | 7,834 | ||||||
| Property, plant and equipment | 24,812 | 24,332 | ||||||
| Intangible assets | 17,981 | 17,896 | ||||||
| Investments | 602 | 598 | ||||||
| Derivative instruments | 791 | 571 | ||||||
| Financing receivables | 976 | 1,101 | ||||||
| Other long-term assets | 910 | 670 | ||||||
| Goodwill | 16,280 | 16,280 | ||||||
| Total assets | 69,761 | 69,282 | ||||||
| Liabilities and shareholders' equity | ||||||||
| Current liabilities: | ||||||||
| Short-term borrowings | 2,893 | 1,750 | ||||||
| Accounts payable and accrued liabilities | 3,721 | 4,221 | ||||||
| Other current liabilities | 369 | 434 | ||||||
| Contract liabilities | 690 | 773 | ||||||
| Current portion of long-term debt | 2,600 | 1,100 | ||||||
| Current portion of lease liabilities | 566 | 504 | ||||||
| Total current liabilities | 10,839 | 8,782 | ||||||
| Provisions | 61 | 54 | ||||||
| Long-term debt | 37,694 | 39,755 | ||||||
| Lease liabilities | 2,162 | 2,089 | ||||||
| Other long-term liabilities | 1,507 | 1,783 | ||||||
| Deferred tax liabilities | 6,232 | 6,379 | ||||||
| Total liabilities | 58,495 | 58,842 | ||||||
| Shareholders' equity | 11,266 | 10,440 | ||||||
| Total liabilities and shareholders' equity | 69,761 | 69,282 | ||||||
| Rogers Communications Inc. | 18 | Third Quarter 2024 | ||||||
Rogers Communications Inc.
Interim Condensed Consolidated Statements of Cash Flows
(In millions of Canadian dollars, unaudited)
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Operating activities: | |||||||||||||||||
Net income (loss) for the period | 526 | (99) | 1,176 | 521 | |||||||||||||
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||||||||||||||||
| Depreciation and amortization | 1,157 | 1,160 | 3,442 | 2,949 | |||||||||||||
| Program rights amortization | 13 | 14 | 52 | 58 | |||||||||||||
| Finance costs | 568 | 600 | 1,724 | 1,479 | |||||||||||||
| Income tax expense | 201 | 111 | 414 | 323 | |||||||||||||
| Post-employment benefits contributions, net of expense | 19 | 21 | 54 | 25 | |||||||||||||
| Losses from associates and joint ventures | 2 | 432 | 1 | 412 | |||||||||||||
| Other | (44) | (33) | (99) | 57 | |||||||||||||
| Cash provided by operating activities before changes in net operating assets and liabilities, income taxes paid, and interest paid | 2,442 | 2,206 | 6,764 | 5,824 | |||||||||||||
| Change in net operating assets and liabilities | 200 | 185 | (209) | (258) | |||||||||||||
| Income taxes paid | (156) | (125) | (388) | (400) | |||||||||||||
| Interest paid | (593) | (512) | (1,622) | (1,324) | |||||||||||||
| Cash provided by operating activities | 1,893 | 1,754 | 4,545 | 3,842 | |||||||||||||
| Investing activities: | |||||||||||||||||
| Capital expenditures | (977) | (1,017) | (3,034) | (2,988) | |||||||||||||
| Additions to program rights | (33) | (20) | (56) | (57) | |||||||||||||
| Changes in non-cash working capital related to capital expenditures and intangible assets | (70) | 95 | (31) | 66 | |||||||||||||
| Acquisitions and other strategic transactions, net of cash acquired | — | — | (475) | (17,001) | |||||||||||||
| Other | (1) | (8) | 11 | 4 | |||||||||||||
| Cash used in investing activities | (1,081) | (950) | (3,585) | (19,976) | |||||||||||||
| Financing activities: | |||||||||||||||||
| Net (repayment of) proceeds received from short-term borrowings | (142) | (754) | 1,119 | (1,343) | |||||||||||||
| Net issuance (repayment) of long-term debt | 18 | 2,389 | (1,108) | 7,789 | |||||||||||||
| Net (payments) proceeds on settlement of debt derivatives and forward contracts | (25) | 111 | (3) | 232 | |||||||||||||
| Transaction costs incurred | — | (19) | (46) | (284) | |||||||||||||
| Principal payments of lease liabilities | (127) | (99) | (358) | (264) | |||||||||||||
| Dividends paid | (186) | (264) | (558) | (769) | |||||||||||||
| Other | 1 | — | (4) | — | |||||||||||||
| Cash (used in) provided by financing activities | (461) | 1,364 | (958) | 5,361 | |||||||||||||
| Change in cash and cash equivalents and restricted cash and cash equivalents | 351 | 2,168 | 2 | (10,773) | |||||||||||||
| Cash and cash equivalents and restricted cash and cash equivalents, beginning of period | 451 | 359 | 800 | 13,300 | |||||||||||||
| Cash and cash equivalents, end of period | 802 | 2,527 | 802 | 2,527 | |||||||||||||
| Rogers Communications Inc. | 19 | Third Quarter 2024 | ||||||
Subsequent Event
Following quarter-end, Rogers entered into a non-binding term sheet with a leading global financial investor which will finance a portion of its network with a structured equity investment of $7 billion. Completion is subject to finalizing definitive agreements and is expected to close in the fourth quarter.
About Forward-Looking Information
This earnings release includes "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws (collectively, "forward-looking information"), and assumptions about, among other things, our business, operations, and financial performance and condition approved by our management on the date of this earnings release. This forward-looking information and these assumptions include, but are not limited to, statements about our objectives and strategies to achieve those objectives, and about our beliefs, plans, expectations, anticipations, estimates, or intentions.
Forward-looking information
•typically includes words like could, expect, may, anticipate, assume, believe, intend, estimate, plan, project, guidance, outlook, target, and similar expressions;
•includes conclusions, forecasts, and projections that are based on our current objectives and strategies and on estimates, expectations, assumptions, and other factors that we believe to have been reasonable at the time they were applied but may prove to be incorrect; and
•was approved by our management on the date of this earnings release.
Our forward-looking information includes forecasts and projections related to the following items, among others:
•revenue;
•total service revenue;
•adjusted EBITDA;
•capital expenditures;
•cash income tax payments;
•free cash flow;
•dividend payments;
•the growth of new products and services;
•expected growth in subscribers and the services to which they subscribe;
•the cost of acquiring and retaining subscribers and deployment of new services;
•continued cost reductions and efficiency improvements;
•the $7 billion structured equity financing transaction (the "network transaction"), including its expected terms, timing, and closing;
•our debt leverage ratio and the impact the network transaction will have on that ratio;
•the use of proceeds from the network transaction;
•the completion of the MLSE Transaction; and
•all other statements that are not historical facts.
Our conclusions, forecasts, and projections are based on a number of estimates, expectations, assumptions, and other factors, including, among others:
•general economic and industry conditions, including the effects of inflation;
•currency exchange rates and interest rates;
•product pricing levels and competitive intensity;
•subscriber growth;
•pricing, usage, and churn rates;
•changes in government regulation;
•technology and network deployment;
•availability of devices;
•timing of new product launches;
•content and equipment costs;
•the integration of acquisitions;
•industry structure and stability; and
•the assumptions listed under the heading "Key assumptions underlying our full-year 2024 guidance" in our 2023 Annual MD&A.
Except as otherwise indicated, this earnings release and our forward-looking information do not reflect the potential impact of any non-recurring or other special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations, or other transactions that may be considered or announced or may occur after the date on which the statement containing the forward-looking information is made.
Risks and uncertainties
Actual events and results may differ materially from what is expressed or implied by forward-looking information as a result of risks, uncertainties, and other factors, many of which are beyond our control or our current expectations or knowledge, including, but not limited to:
•regulatory changes;
•technological changes;
•economic, geopolitical, and other conditions affecting commercial activity;
•unanticipated changes in content or equipment costs;
•changing conditions in the entertainment, information, and communications industries;
•sports-related work stoppages or cancellations and labour disputes;
•the integration of acquisitions;
•litigation and tax matters;
| Rogers Communications Inc. | 20 | Third Quarter 2024 | ||||||
•the level of competitive intensity;
•the emergence of new opportunities;
•external threats, such as epidemics, pandemics, and other public health crises, natural disasters, the effects of climate change, or cyberattacks, among others;
•anticipated asset sales may not be achieved within the expected timeframes or at all for proceeds in the amount or type expected;
•new interpretations and new accounting standards from accounting standards bodies;
•the MLSE Transaction, and any funding for it from private investors, may not be completed on the anticipated terms or at all;
•we may not reach definitive agreements for, or may not complete, the network transaction on the anticipated terms or timing or at all;
•we may use proceeds from the network transaction for different purposes due to alternative opportunities or requirements, general economic and market conditions, or other internal or external considerations; and
•the other risks outlined in "Risks and Uncertainties Affecting our Business" in our 2023 Annual MD&A and "Updates to Risks and Uncertainties" in our Q3 2024 MD&A.
These risks, uncertainties, and other factors can also affect our objectives, strategies, plans, and intentions. Should one or more of these risks, uncertainties, or other factors materialize, our objectives, strategies, plans, or intentions change, or any other factors or assumptions underlying the forward-looking information prove incorrect, our actual results and our plans could vary materially from what we currently foresee.
Accordingly, we warn investors to exercise caution when considering statements containing forward-looking information and caution them that it would be unreasonable to rely on such statements as creating legal rights regarding our future results or plans. We are under no obligation (and we expressly disclaim any such obligation) to update or alter any statements containing forward-looking information or the factors or assumptions underlying them, whether as a result of new information, future events, or otherwise, except as required by law. All of the forward-looking information in this earnings release is qualified by the cautionary statements herein.
Before making an investment decision
Before making any investment decisions and for a detailed discussion of the risks, uncertainties, and environment associated with our business, its operations, and its financial performance and condition, fully review the sections in our 2023 Annual MD&A entitled "Regulation in our Industry" and "Risk Management", as well as our various other filings with Canadian and US securities regulators, which can be found at sedarplus.ca and sec.gov, respectively. Information on or connected to sedarplus.ca, sec.gov, our website, or any other website referenced in this document is not part of or incorporated into this earnings release.
About Rogers
Rogers is Canada's communications and entertainment company and its shares are publicly traded on the Toronto Stock Exchange (TSX: RCI.A and RCI.B) and on the New York Stock Exchange (NYSE: RCI).
Investment Community Contact
Paul Carpino
647.435.6470
paul.carpino@rci.rogers.com
Media Contact
Sarah Schmidt
647.643.6397
sarah.schmidt@rci.rogers.com
Quarterly Investment Community Teleconference
Our third quarter 2024 results teleconference with the investment community will be held on:
•October 24, 2024
•8:00 a.m. Eastern Time
•webcast available at investors.rogers.com
•media are welcome to participate on a listen-only basis
A rebroadcast will be available at investors.rogers.com for at least two weeks following the teleconference. Additionally, investors should note that from time to time, Rogers management presents at brokerage-sponsored investor conferences. Most often, but not always, these conferences are webcast by the hosting brokerage firm, and when they are webcast, links are made available on our website at investors.rogers.com.
| Rogers Communications Inc. | 21 | Third Quarter 2024 | ||||||
For More Information
You can find more information relating to us on our website (investors.rogers.com), on SEDAR+ (sedarplus.ca), and on EDGAR (sec.gov), or you can e-mail us at investor.relations@rci.rogers.com. Information on or connected to these and any other websites referenced in this earnings release is not part of, or incorporated into, this earnings release.
You can also go to investors.rogers.com for information about our governance practices, environmental, social, and governance (ESG) reporting, a glossary of communications and media industry terms, and additional information about our business.
# # #
| Rogers Communications Inc. | 22 | Third Quarter 2024 | ||||||