Rogers Communications (RCI) Q4 2024 earnings summary

Executive summary

• Achieved over $20 billion in annual revenue for 2024, leading Canadian wireless and internet subscriber growth with 2.0 million net adds over twelve quarters and 623,000 net additions in 2024.

• Delivered sector-leading Q4 margins: 66.4% in Wireless and 59.0% in Cable, with stable ARPU and best service revenue and Adjusted EBITDA growth in the industry.

• Achieved third consecutive year of industry-leading financial and operational performance, with continued efficiency gains and disciplined subscriber growth.

• Advanced innovation leadership with network reliability awards and new technology rollouts, including Storm-Ready WiFi.

• Announced 2025 guidance with expectations for continued growth in service revenue, adjusted EBITDA, and strong free cash flow.

Financial highlights

• Q4 2024 revenue was $5,481 million, up 3% year-over-year; full-year revenue reached $20,604 million, up 7%.

• Adjusted EBITDA for Q4 was $2,533 million, up 9%; full-year adjusted EBITDA was $9,617 million, up 12%.

• Net income for Q4 was $558 million, up 70% year-over-year; full-year net income was $1,734 million, up 104%.

• Free cash flow in Q4 was $878 million, up 7%; full-year free cash flow was $3,045 million, up 26%.

• Q4 capital expenditures totaled $1,007 million, up 6% year-over-year.

Outlook and guidance

• 2025 guidance: total service revenue and adjusted EBITDA expected to grow 0% to 3% over 2024; capital expenditures of $3.8–$4.0 billion; free cash flow of $3.0–$3.2 billion.

• Expects continued network investments and expansion across all Canadian regions.

• Guidance does not include the impact of the pending MLSE Transaction or associated financing.

• Anticipates continued competitive environment and moderating wireless subscriber growth due to lower immigration and foreign student levels.

• Market growth for wireless estimated at 3% for 2025, with cable homes passed expected to grow 2.5%-2.8%.