Rogers Communications (RCI) Q3 2024 earnings summary

Executive summary

• Achieved record wireless and cable adjusted EBITDA margins in Q3 2024, with strong subscriber growth and network leadership, including a global first in DOCSIS 4.0 modem technology.

• Added 1.9 million mobile phone and internet subscribers over the past eleven quarters, maintaining industry leadership in Canada.

• Announced a CAD 7 billion structured equity financing to reduce leverage, targeting a year-end leverage ratio of 3.7x.

• Signed agreement to acquire Bell's 37.5% stake in MLSE for $4.7 billion, aiming for majority control upon closing.

• Recognized for most reliable 5G and fastest internet in Canada by Umlaut and Opensignal.

Financial highlights

• Q3 2024 total service revenue rose 1% year-over-year to $4,567 million; consolidated adjusted EBITDA increased 6% to $2,545 million, with margin up 2.3 pts to 49.6%.

• Net income for Q3 2024 was $526 million; adjusted net income was $762 million, up 12% year-over-year.

• Free cash flow was $915 million, up 23% year-over-year; capital expenditures were $977 million, down 4%.

• Wireless service revenue grew 2% year-over-year to $2,066 million; adjusted EBITDA up 5% with margin at 66.1%.

• Cable revenue declined 1% to $1,970 million, but adjusted EBITDA rose 5% to $1,133 million with margin at 57.5%.

Outlook and guidance

• Reaffirmed 2024 guidance: total service revenue growth of 8–10%, adjusted EBITDA growth of 12–15%, capex of $3.8–$4.0 billion, and free cash flow of $2.9–$3.1 billion.

• Expects to return cable revenue to growth in Q4 and maintain leverage around 3.7x through 2025, including the MLSE acquisition.

• Expects continued strong performance in sports and media in Q4.