🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Canada's Rogers raises annual profit, free cash flow forecasts

Published 07/26/2023, 07:10 AM
Updated 07/26/2023, 09:56 AM
© Reuters. FILE PHOTO: General view of the Rogers Building, quarters of Rogers Communications in Toronto, Ontario, Canada October 22, 2021. REUTERS/Carlos Osorio/File Photo
SJR
-
ROG
-
BCE
-
TU
-

(Reuters) -Canada's Rogers (NYSE:ROG) raised its annual forecasts for adjusted core earnings and free cash flow on Wednesday, betting on strong demand for its wireless services, sending its shares up more than 4%.

An expanding 5G network and plan bundles have helped Rogers attract cost-conscious consumers in a highly competitive market that includes players such as BCE (NYSE:BCE) and Telus (NYSE:TU).

Rogers, which in April closed its C$20 billion deal for Shaw Communications (NYSE:SJR) after months of regulatory scrutiny, said it now expects growth in adjusted core earnings to be between 33% and 36% in 2023, compared with its prior forecast of 31% to 35%.

Full-year free cash flow is now projected to be between C$2.2 billion and C$2.5 billion, compared with the company's previous forecast of C$2.0 billion to C$2.2 billion.

"The integration with Shaw is tracking ahead of plan," CEO Tony Staffieri said, as the company reiterated its plan to dispose about $1 billion in non-core assets.

In the second quarter ended June 30, Rogers added 170,000 monthly bill paying wireless phone subscribers, compared with 95,000 in the previous quarter and more than estimates for 129,900, according to 9 analysts polled by Visible Alpha. Revenue from the wireless business rose by 10% to C$2.42 billion, in line with expectations.

The media business grew 4% to C$686 million, faring slightly better than estimates, on the back of increased revenue due to higher attendance figures at the Toronto Blue Jays, the Major League Baseball team it owns.

The cable business posted a near 93% jump in revenue, mainly as a result of the Shaw deal.

Overall, revenue grew 30% from a year earlier to C$5.05 billion ($3.82 billion) but was slightly short of analysts' average estimate of C$5.07 billion, according to Refinitiv data.

Adjusted profit was C$1.02 per share, missing average analysts' estimate of C$1.14 per share..

© Reuters. FILE PHOTO: General view of the Rogers Building, quarters of Rogers Communications in Toronto, Ontario, Canada October 22, 2021. REUTERS/Carlos Osorio/File Photo

Rival Canadian telecom giant BCE will report earnings on Aug. 3, followed by Telus on Aug. 4.

($1 = 1.3208 Canadian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.