Rogers Communications (NYSE: RCI) is Canada’s leading mobile network operator, according to Inside Towers Intelligence. As the only Canadian MNO with a coast-to-coast 5G standalone network with close to 11,000 sites listed in the Inside Towers Database, the company reported that its postpaid and prepaid subscriber base grew three percent year-over-year to nearly 11.7 million. For the quarter, Rogers Wireless had total net adds of 162,000 customers comprising 112,000 postpaid mobile phone customer net additions and 50,000 prepaid net additions.
Wireless service revenue in the quarter grew four percent YoY to over $1.4 billion. Rogers CEO Tony Staffieri attributed the increase to “our disciplined execution across all of our sales channels from coast to coast.” He added, “Our targeted strategy of driving higher value for our customers through feature-rich 5G services from our Rogers premium brand remains critical to driving this growth.” Wireless accounted for 48 percent of the company’s total revenues that also include its Cable and Media businesses.
The increase in wireless service revenues and subscribers in 3Q23 reflects Rogers network integration of the Shaw Communications acquisition that closed in April 2023, Inside Towers reported.
Wireless Adjusted EBITDA for the quarter was up six percent YoY. Staffieri says that this increase “is an all-time high, reflecting our team’s exceptional work on driving cost efficiency.”
Rogers’ wireless capex for the quarter was $287 million, down 14 percent from $332 million in 2Q23. The decline reflects the company’s moderating pace of 3500 MHz and 3800 MHz mid-band spectrum rollouts, and a wind down of some integration activities in the aftermath of the Shaw Communications network integration, Inside Towers reported.
Mobile phone ARPU was $57.24, up one percent YoY. The company says this increase reflects its disciplined approach to the market and an emphasis on the premium Rogers brand.
The company owns a few prepaid services, referred to as “flanker brands,” that offer alternative wireless services to Rogers premium 5G postpaid service. These brands utilize the Rogers network and include Fido with competitive pricing and straightforward plans, Chatr that offers budget-friendly options with reduced data speeds, and Lucky Mobile that focuses on affordability.
Rogers’ guidance for 2024 financial performance includes total wireless and cable service revenue growth of eight percent to 10 percent, Adjusted EBITDA growth of 12 percent to 15 percent and total midpoint capital expenditures of $2.8 billion, flat with 2023.
By John Celentano, Inside Towers Business Editor
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