Rogers Communications (TSX: RCI.B) has released its fourth-quarter and full-year 2024 financial results, generating $20.6 billion in total revenue for 2024, marking a 7% increase from $19.3 billion in 2023.
Service revenue reached $18.1 billion for the year, up from $16.8 billion, driven primarily by wireless growth and stabilization in its cable business.
For Q4, Rogers posted $5.48 billion in total revenue, up 3% from $5.33 billion in Q4 2023, while service revenue increased 2% to $4.54 billion.
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The wireless segment remains Rogers’ largest revenue driver, contributing $10.6 billion in revenue for the year, a 4% increase from $10.2 billion in 2023. Wireless service revenue also in Q4 by 2%, reaching $2.98 billion compared to $2.87 billion in Q4 2023.
Cable business delivered $7.88 billion in revenue for 2024, a 12% increase from $7.01 billion the previous year, bolstered by the acquisition of Shaw Communications. However, Q4 revenue remained flat year-over-year at $1.98 billion.
The media segment posted a 10% revenue increase to $616 million in Q4 2024, up from $558 million in the prior year. Full-year media revenue stood at $2.48 billion, up from $2.34 billion in 2023. Despite this growth, Rogers cited a weaker-than-expected Q4 performance, attributing it to seasonal revenue fluctuations.
Operating expenses increased to $10.99 billion for 2024, up from $10.72 billion in 2023. In Q4, this figure totaled $2.95 billion, slightly lower than Q4 2023’s $3.01 billion. Interest expenses climbed 12% to $2.3 billion, compared to $2.05 billion in 2023, driven by higher debt servicing costs following the Shaw acquisition.
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Net income for the year more than doubled to $1.73 billion from $849 million in 2023, a 104% increase. This figure also surged in the fourth quarter by 70% to $558 million from $328 million a year ago, but fell from Q3 2024’s $600 million.
Adjusted EBITDA rose 12% year-over-year to $9.6 billion, improving from $8.6 billion. In Q4, this grew 9% year-over-year to $2.53 billion from $2.33 billion, improving the EBITDA margin to 46.2% from 43.7% in the prior year.
Adjusted earnings per share for the year stood at $5.04, up from $4.59, while in Q4, adjusted EPS came in at $1.46, exceeding analysts’ expectations of $1.36.
Free cash flow grew 26% to $3.05 billion in 2024 from $2.41 billion in 2023. Fourth-quarter free cash flow rose 7% year-over-year to $878 million.
However, operating cash flow for Q4 decreased 18% to $1.14 billion from $1.38 billion from a year-ago period. Capital expenditures for the year stood at $4.04 billion, slightly exceeding Rogers’ original guidance range of $3.8 billion to $4 billion, as the company continued to invest in network expansion and infrastructure improvements.
Rogers’ financial leverage remains high, with a debt leverage ratio of 4.5x as of 2024, compared to 5.0x a year prior. The company is pursuing a $7 billion structured equity investment from an unnamed global investor, speculated to be Blackstone Inc.
The company reported 95,000 postpaid and prepaid subscriber additions in the fourth quarter, lower than Q3 2024’s 125,000 additions. But the postpaid mobile churn rate improved to 1.53% from 1.67% a year earlier. However, average revenue per user remained stagnant at $58.
Rogers also reported adding 26,000 new internet subscribers in Q4, a 30% increase from Q4 2023, but still lower than the 32,000 additions in Q3 2024.
Looking ahead, Rogers provided a conservative outlook for 2025, forecasting total service revenue growth of 0% to 3% and adjusted EBITDA growth within the same range. Free cash flow is projected between $3.0 billion and $3.2 billion, with capital expenditures ranging again from $3.8 billion to $4.0 billion. These figures suggest a slowdown in earnings momentum compared to the double-digit growth rates of 2024.
Information for this story was found via Bloomberg and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
