Rogers Communications' Q4 Earnings and Revenues Beat Estimates

Rogers Communications RCI reported fourth-quarter 2024 adjusted earnings of $1.04 per share, which beat the Zacks Consensus Estimate by 9.47% and increased 19.54% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Revenues of $3.92 billion beat the consensus mark by 4.08% and declined 0.03% year over year.In domestic currency (Canadian dollar), adjusted earnings increased 23% year over year to C$1.46 per share. Total revenues increased 3% year over year, reaching C$5.48 billion, driven primarily by revenue growth in media businesses.Rogers Communication, Inc. Price, Consensus and EPS Surprise Rogers Communication, Inc. price-consensus-eps-surprise-chart | Rogers Communication, Inc. QuoteWireless DetailsWireless revenues (54.4% of total revenues) increased 3.9% year over year to C$2.98 billion. Service revenues rose 1.9% to C$2.06 billion. Equipment revenues increased 8.8% to C$923 million.Monthly mobile phone ARPU was C$58.04, up 0.14% year over year.As of Dec. 31, 2024, the prepaid subscriber base totaled 1.106 million, representing a loss of 5K subscribers year over year. The monthly churn rate was 2.8% compared with 6.2% reported in the year-ago quarter.As of Dec. 31, 2024, the postpaid wireless subscriber base totaled 10.77 million, representing net additions of 270K subscribers year over year. The monthly churn rate was 1.53% compared with 1.67% in the year-ago quarter.Segment operating expenses rose 2% year over year to C$1.61 billion.Adjusted EBITDA increased 5.89% year over year to C$1.37 billion. Adjusted EBITDA margin expanded 90 basis points (bps) on a year-over-year basis to 45.9%.Cable DetailsCable revenues (36.2% of total revenues) increased 0.1% year over year to C$1.98 billion due to a decrease in the Home Phone and Satellite subscriber base.Service revenues rose 0.2% year over year to C$1.97 billion. Equipment revenues decreased 11.8% on a year-over-year basis to C$15 million.As of Dec. 31, 2024, the retail Internet subscriber count was nearly 4.273 million, representing a net increase of 111K subscribers year over year.As of Dec. 31, 2024, total Smart Home Monitoring subscribers reached 133K, indicating an increase of 44K subscribers. The total Home Phone subscriber count was nearly 1.51 million, reflecting a loss of 122K customers in the reported quarter.ARPA was C$140.31, lower than the C$141.96 reported in the year-ago quarter.Segment operating expenses declined 6.5% year over year to C$814 million.Adjusted EBITDA increased 5.22% year over year to C$1.17 billion.Media DetailsMedia revenues (11.2% of total revenues) increased 10.4% year over year to C$616 million due to higher sports-related revenues, driven by higher subscriber revenues and higher revenues at the Taylor Swift Eras Tour and Toronto concerts hosted at Rogers Center.Segment operating expenses increased 1.6% year over year to C$563 million.The segment reported an adjusted EBITDA of $53 million, significantly up year over year due to higher revenues and expense changes.Consolidated ResultsOperating costs declined 0.37% to C$2.99 billion. As a percentage of revenues, operating costs were 54.6%.Adjusted EBITDA rose 7.61% year over year to C$2.59 billion. Adjusted EBITDA margin expanded 210 bps to 47.2%.Balance Sheet & Cash Flow DetailsAs of Dec. 31, 2024, Rogers had C$4.8 billion of available liquidity, including $0.9 billion in cash and cash equivalents and a combined C$3.5 billion available under the bank credit facility. In comparison, RCI had C$4.8 billion of available liquidity as of Sept. 30, 2024, including $0.8 billion in cash and cash equivalents and a combined C$4 billion available under the bank credit facility.Rogers’ debt leverage ratio was 4.5 times as of Dec. 31, 2024, as a result of cost reductions, earnings growth, proceeds from asset sales and commencing the payback of acquisition-related debt.Cash flow from operating activities was C$1.14 billion compared with C$1.89 billion generated in the previous quarter. Free cash flow was C$878 million compared with C$915 million generated in the previous quarter.Rogers paid dividends worth C$267 million and declared a C$0.50 per share dividend.2025 GuidanceFor 2025, Rogers expects total service revenues to grow between 0-3%. Adjusted EBITDA is expected to grow in the range of 0-3%.Capital expenditure is expected to be between C$3.8 billion and C$4 billion. Free cash flow is expected in the range of C$3-C$3.2 billion.Rogers Communications’ Zacks Rank & Stocks to ConsiderCurrently, RCI carries a Zacks Rank #4 (Sell).Akamai Technologies AKAM, AMETEK AME and DoorDash DASH are some better-ranked stocks that investors can consider in the broader sector. AKAM, AME and DASH carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Akamai Technologies shares have lost 18.2% in the trailing 12 months. AKAM is set to report its fourth-quarter 2024 results on Feb. 20.AMETEK shares have gained 12.1% in the trailing 12 months. AME is set to report its fourth-quarter 2024 results on Feb. 4.DoorDash shares have surged 75.8% in the trailing 12 months. DASH is set to report its fourth-quarter 2024 results on Feb. 11.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rogers Communication, Inc. (RCI): Free Stock Analysis Report Akamai Technologies, Inc. (AKAM): Free Stock Analysis Report AMETEK, Inc. (AME): Free Stock Analysis Report DoorDash, Inc. (DASH): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks