Rogers Communications (NYSE: RCI), based in Toronto, is Canada’s leading wireless and cable network operator, according to Inside Towers Intelligence. The company reported at the end of 3Q24 that Rogers Wireless had nearly 11.9 million retail postpaid and prepaid subscribers, a year-over-year increase of more than two percent bolstered by 193,000 net additions in the quarter. Wireless service revenues grew two percent YoY to $1.5 billion while Adjusted EBITDA was up over 5 percent YoY to $986 million.
The company invested $260 million in its wireless network, down eight percent from $275 million in 3Q23. Rogers says the capex decrease was due to the timing of investments as it continues to fuel its network development and 5G expansion. The ongoing deployment of mid-band 3500 MHz spectrum and the commencement of 3800 MHz spectrum deployment continue to augment the capacity and durability of earlier 5G deployments in the low-band 600 MHz spectrum band.
Rogers Cable became Canada’s largest cable provider after completing the acquisition of Shaw Communications in April 2023, Inside Towers reported. The company ended the quarter with 10.1 million homes passed and 4.2 million broadband customers, up two percent YoY. Cable service revenue at roughly $1.4 billion was down by one percent YoY while Adjusted EBITDA grew by five percent YoY to $819 billion.
The company attributes nine percent YoY decrease in cable capex to $369 million in the quarter to the timing of investments. Rogers says it will continue to invest in fiber deployments in its cable network including fiber-to-the-home, and expand its network footprint to reach more homes and businesses, including in rural, remote, and Indigenous communities.
Rogers says these investments incorporate the latest technologies to help deliver more bandwidth and deliver an enhanced customer experience as the company advances its connected home roadmap. This includes upgrades to its existing DOCSIS 3.1 hybrid-fiber coax platform to evolve to DOCSIS 4.0 that will offer increased network resilience, stability, and download speeds up to 4 Gbps over time.
For the full-year 2024, the company reaffirmed guidance for consolidated results including total service revenue increases of 8 percent to 10 percent, Adjusted EBITDA of 12 percent to 15 percent, aggregate capex of $2.8 billion and free cash flow of $2.2 billion.
Separately, Rogers said it is close to a $5.1 billion structured equity investment to finance parts of its network and reduce its debt load, according to Yahoo Finance. With that financing, Rogers will keep operational control of its networks and ownership of its cell towers, company executives said during a conference call. Rogers owns and operates nearly 11,000 towers across Canada, according to Inside Towers Database.
Rogers expects the structured equity deal to reduce its leverage ratio to 3.7 times by the end of the year. “This is well ahead of our 4.2 times target we previously communicated, and it will accelerate our Shaw deleveraging plans by a full 12 months,” comments Tony Staffieri, Rogers CEO.
By John Celentano, Inside Towers Business Editor
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