(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..
Rival Canadian telecom giant BCE will report earnings on Aug. 3, followed by Telus on Aug. 4.
($1 = 1.3208 Canadian dollars)