We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Rogers Communications (RCI - Free Report) reported first-quarter 2021 adjusted earnings of 61 cents per share that beat the Zacks Consensus Estimate by 17.3%.
Total revenues of $2.75 billion beat the consensus mark by 1.8%.
Adjusted earnings increased 8.5% year over year to C$0.77 per share. Total revenues increased 2.1% year over year to C$3.48 billion largely driven by increase in Cable service revenues.
Wireless Details
Wireless (59.5% of total revenues) decreased marginally by 0.1% from the year-ago quarter to C$2.07 billion due to a decline in service revenues.
Service revenues declined 6% to C$1.6 billion, as a result of lower roaming revenues associated with a drop in overall roaming activity due to travel barriers, and decrease in overage revenues due to faster adoption of Rogers Infinite unlimited data plan launched last quarter.
Equipment revenues were down 7.2% to C$654 million due to lower device upgrades by existing customers.
Monthly blended ARPU was C$49.09, down 7.1% year over year, primarily as a result of declines in overage and roaming revenues. Meanwhile, monthly blended average billing per user (ABPU) was C$62.1, down 4.6%, primarily as a result of decline in roaming, overage, and other fee revenues due to COVID-19.
As of Mar 31, 2021, prepaid subscriber base totaled almost 1.204 million, highlighting a loss of 132K subscribers from the year-ago quarter. Monthly churn rate was 4.33% compared with 4.98% in the year-ago quarter.
As of Mar 31, 2021, postpaid wireless subscriber base totaled roughly 9.72 million, up 295K from the year-ago quarter driven by strong adoption of Rogers Infinite plans and an increase in market activity by Canadians. Monthly churn rate was 0.88% compared with 0.93% in the year-ago quarter.
Rogers Communication, Inc. Price, Consensus and EPS Surprise
During the quarter, the company expanded Canada's first and largest 5G network to 10 more cities, now in 173 markets across Canada, and announced a smart city initiative with Communitech to develop 5G transportation solutions of the future. Rogers expanded the availability of its 5G service in British Columbia, Ontario and Quebec.
On Feb 8, 2021, Rogers announced the introduction of two solutions, Advantage Mobility and Advantage Security for small and medium-sized enterprises (SMEs), designed to provide additional connectivity and security features, by Rogers for Business.
Additionally, Rogers announced that Rogers for Business has expanded its network to more rural communities in British Columbia, leveraging financial support from the provincially funded Connecting British Columbia program and administered by Northern Development Initiative Trust, to provide broadband services to underserved Indigenous, remote and rural communities.
Segment operating expenses increased 1% from the year-ago quarter to C$1.06 billion.
Adjusted EBITDA decreased 1.3% year over year to C$1.01 billion. Adjusted EBITDA margin contracted 60 basis points (bps) on a year-over-year basis to 48.8%.
Cable Details
Cable revenues (29.2% of total revenues) increased 4.8% year over year to C$1.02 billion due to a 4% increase in ARPA attributable to the movement of Internet customers to Ignite Internet offerings and service pricing changes. Service revenues increased 4.8% year over year to C$1.01 billion.
As of Mar 31, 2021, Internet subscriber count was nearly 2.61 million, up 61K from the year-ago quarter.
Ignite TV subscriber count was nearly 602K in the Television segment, reflecting an increase of 185K from the year-ago quarter.
Equipment revenues remained flat year over year at C$2 million.
Segment operating expenses increased 2.5% from the year-ago quarter to C$533 million.
Adjusted EBITDA increased 7.5% year over year to C$487 million. Adjusted EBITDA margin expanded 120 bps on a year-over-year basis to 47.7%.
Media Details
Media (12.6% of total revenues) increased 6.8% from the year-ago quarter to C$440 million due to higher sports-related and Today's Shopping Choice revenues, partially offset by softness in the radio advertising market due to COVID-19.
During the quarter, Rogers started offering exclusive English Canada access to more than 300 NHL broadcasts in a condensed 17-week schedule across Sportsnet's TV and streaming platforms this season, with 140 all-Canadian matchups available across the Sportsnet Radio Network.
Midway into the season, audiences for Wednesday Night Hockey are up 56% year over year, while Saturday’s Hockey Night in Canada early game is up 6% and the late game is up 27%.
Segment operating expenses increased 0.4% year over year to C$499 million, primarily attributed to higher sports programming and production costs.
Consolidated Results
Operating costs increased 0.8% to C$2.09 billion. As a percentage of revenues, operating costs contracted 80 bps to 60.1%.
Adjusted EBITDA increased 4.2% year over year to C$1.39 billion. Adjusted EBITDA margin expanded 80 bps to 39.9%.
Balance Sheet & Cash Flow Details
As of Mar 31, 2021, Rogers Communications had $4 billion of available liquidity, including $0.8 billion in cash and cash equivalents and a combined $3.2 billion available under bank credit facility.
Notably, the company had $5.7 billion of available liquidity, including $2.5 billion in cash and cash equivalents and a combined $3.2 billion available under bank credit facility at the end of the previous quarter.
Cash provided by operating activities dropped 29.2% year over year to C$679 million. Free cash flow decreased 14.7% year over year to C$394 million.
Rogers Communications paid out C$252 million in dividends in the reported quarter.
The company ended the first quarter with a debt leverage ratio (adjusted net debt/adjusted EBITDA) of 3, up 30 bps from the year-ago quarter.
Key Developments in Q1
On Mar 15, 2021, Rogers announced that the company has reached an agreement to acquire Shaw Communications in a transaction valued at around $26 billion, inclusive of nearly $6 billion of debt.
The transaction requires the approval of Shaw's shareholders at a special shareholders meeting to be held on May 20, 2021.
As part of the transaction, the combined companies will invest $2.5 billion to build 5G networks across Western Canada over the next five years and Rogers will commit to establishing a new $1 billion Rogers Rural and Indigenous Connectivity Fund dedicated to connecting rural, remote, and indigenous communities across Western Canada to high-speed Internet and closing critical connectivity gaps faster for underserved areas.
Zacks Rank & Stocks to Consider
Rogers Communications currently carries a Zacks Rank #2 (Buy).
Nextstar Media, TEGNA and JAKK Pacific are scheduled to report their quarterly results on May 4, 10 and 12, respectively.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
Image: Bigstock
Rogers Communications (RCI) Q1 Earnings & Revenues Beat
Rogers Communications (RCI - Free Report) reported first-quarter 2021 adjusted earnings of 61 cents per share that beat the Zacks Consensus Estimate by 17.3%.
Total revenues of $2.75 billion beat the consensus mark by 1.8%.
Adjusted earnings increased 8.5% year over year to C$0.77 per share. Total revenues increased 2.1% year over year to C$3.48 billion largely driven by increase in Cable service revenues.
Wireless Details
Wireless (59.5% of total revenues) decreased marginally by 0.1% from the year-ago quarter to C$2.07 billion due to a decline in service revenues.
Service revenues declined 6% to C$1.6 billion, as a result of lower roaming revenues associated with a drop in overall roaming activity due to travel barriers, and decrease in overage revenues due to faster adoption of Rogers Infinite unlimited data plan launched last quarter.
Equipment revenues were down 7.2% to C$654 million due to lower device upgrades by existing customers.
Monthly blended ARPU was C$49.09, down 7.1% year over year, primarily as a result of declines in overage and roaming revenues. Meanwhile, monthly blended average billing per user (ABPU) was C$62.1, down 4.6%, primarily as a result of decline in roaming, overage, and other fee revenues due to COVID-19.
As of Mar 31, 2021, prepaid subscriber base totaled almost 1.204 million, highlighting a loss of 132K subscribers from the year-ago quarter. Monthly churn rate was 4.33% compared with 4.98% in the year-ago quarter.
As of Mar 31, 2021, postpaid wireless subscriber base totaled roughly 9.72 million, up 295K from the year-ago quarter driven by strong adoption of Rogers Infinite plans and an increase in market activity by Canadians. Monthly churn rate was 0.88% compared with 0.93% in the year-ago quarter.
Rogers Communication, Inc. Price, Consensus and EPS Surprise
Rogers Communication, Inc. price-consensus-eps-surprise-chart | Rogers Communication, Inc. Quote
During the quarter, the company expanded Canada's first and largest 5G network to 10 more cities, now in 173 markets across Canada, and announced a smart city initiative with Communitech to develop 5G transportation solutions of the future. Rogers expanded the availability of its 5G service in British Columbia, Ontario and Quebec.
On Feb 8, 2021, Rogers announced the introduction of two solutions, Advantage Mobility and Advantage Security for small and medium-sized enterprises (SMEs), designed to provide additional connectivity and security features, by Rogers for Business.
Additionally, Rogers announced that Rogers for Business has expanded its network to more rural communities in British Columbia, leveraging financial support from the provincially funded Connecting British Columbia program and administered by Northern Development Initiative Trust, to provide broadband services to underserved Indigenous, remote and rural communities.
Segment operating expenses increased 1% from the year-ago quarter to C$1.06 billion.
Adjusted EBITDA decreased 1.3% year over year to C$1.01 billion. Adjusted EBITDA margin contracted 60 basis points (bps) on a year-over-year basis to 48.8%.
Cable Details
Cable revenues (29.2% of total revenues) increased 4.8% year over year to C$1.02 billion due to a 4% increase in ARPA attributable to the movement of Internet customers to Ignite Internet offerings and service pricing changes. Service revenues increased 4.8% year over year to C$1.01 billion.
As of Mar 31, 2021, Internet subscriber count was nearly 2.61 million, up 61K from the year-ago quarter.
Ignite TV subscriber count was nearly 602K in the Television segment, reflecting an increase of 185K from the year-ago quarter.
Equipment revenues remained flat year over year at C$2 million.
Segment operating expenses increased 2.5% from the year-ago quarter to C$533 million.
Adjusted EBITDA increased 7.5% year over year to C$487 million. Adjusted EBITDA margin expanded 120 bps on a year-over-year basis to 47.7%.
Media Details
Media (12.6% of total revenues) increased 6.8% from the year-ago quarter to C$440 million due to higher sports-related and Today's Shopping Choice revenues, partially offset by softness in the radio advertising market due to COVID-19.
During the quarter, Rogers started offering exclusive English Canada access to more than 300 NHL broadcasts in a condensed 17-week schedule across Sportsnet's TV and streaming platforms this season, with 140 all-Canadian matchups available across the Sportsnet Radio Network.
Midway into the season, audiences for Wednesday Night Hockey are up 56% year over year, while Saturday’s Hockey Night in Canada early game is up 6% and the late game is up 27%.
Segment operating expenses increased 0.4% year over year to C$499 million, primarily attributed to higher sports programming and production costs.
Consolidated Results
Operating costs increased 0.8% to C$2.09 billion. As a percentage of revenues, operating costs contracted 80 bps to 60.1%.
Adjusted EBITDA increased 4.2% year over year to C$1.39 billion. Adjusted EBITDA margin expanded 80 bps to 39.9%.
Balance Sheet & Cash Flow Details
As of Mar 31, 2021, Rogers Communications had $4 billion of available liquidity, including $0.8 billion in cash and cash equivalents and a combined $3.2 billion available under bank credit facility.
Notably, the company had $5.7 billion of available liquidity, including $2.5 billion in cash and cash equivalents and a combined $3.2 billion available under bank credit facility at the end of the previous quarter.
Cash provided by operating activities dropped 29.2% year over year to C$679 million. Free cash flow decreased 14.7% year over year to C$394 million.
Rogers Communications paid out C$252 million in dividends in the reported quarter.
The company ended the first quarter with a debt leverage ratio (adjusted net debt/adjusted EBITDA) of 3, up 30 bps from the year-ago quarter.
Key Developments in Q1
On Mar 15, 2021, Rogers announced that the company has reached an agreement to acquire Shaw Communications in a transaction valued at around $26 billion, inclusive of nearly $6 billion of debt.
The transaction requires the approval of Shaw's shareholders at a special shareholders meeting to be held on May 20, 2021.
As part of the transaction, the combined companies will invest $2.5 billion to build 5G networks across Western Canada over the next five years and Rogers will commit to establishing a new $1 billion Rogers Rural and Indigenous Connectivity Fund dedicated to connecting rural, remote, and indigenous communities across Western Canada to high-speed Internet and closing critical connectivity gaps faster for underserved areas.
Zacks Rank & Stocks to Consider
Rogers Communications currently carries a Zacks Rank #2 (Buy).
JAKKS Pacific, Inc. (JAKK - Free Report) , Nexstar Media Group, Inc (NXST - Free Report) and TEGNA Inc. (TGNA - Free Report) are some other top-ranked stocks in the broader consumer discretionary sector. While Nextstar Media sports a Zacks Rank #1 (Strong Buy), TEGNA and JAKK Pacific carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nextstar Media, TEGNA and JAKK Pacific are scheduled to report their quarterly results on May 4, 10 and 12, respectively.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>