Rogers Communications Inc. (RCI) Bundle
A Brief History of Rogers Communications Inc.
Rogers Communications Inc. (RCI) has established itself as a leading telecommunications and media company in Canada. As of 2024, the company has seen significant developments, particularly following the acquisition of Shaw Communications in April 2023.
Financial Performance Overview
For the third quarter of 2024, Rogers reported total revenue of $5.129 billion, reflecting a slight increase from $5.092 billion in the same quarter of the previous year. The company’s adjusted EBITDA for the quarter was $2.545 billion, up from $2.411 billion in Q3 2023, representing a year-over-year growth of 6%.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $5.129 billion | $5.092 billion | 0.73% |
| Adjusted EBITDA | $2.545 billion | $2.411 billion | 5.56% |
| Net Income | $526 million | ($99 million) | n/m |
| Basic Earnings per Share | $0.99 | ($0.19) | n/m |
Debt Management and Financial Strategy
As of September 30, 2024, Rogers’ total long-term debt amounted to approximately $40.294 billion, down from $44.094 billion in 2023. The company effectively managed its debt through various transactions, including the issuance of senior notes and strategic repayments. In February 2024, Rogers issued $2.5 billion in senior notes, consisting of $1.25 billion of 5.00% notes due 2029 and $1.25 billion of 5.30% notes due 2034, with net proceeds of approximately $3.32 billion.
| Debt Metric | Amount (Cdn$) |
|---|---|
| Total Long-term Debt | $40.294 billion |
| Senior Notes Issued (February 2024) | $2.5 billion |
| Net Proceeds from Senior Notes | $3.32 billion |
Acquisition of Shaw Communications
The acquisition of Shaw Communications for approximately $26 billion has significantly impacted Rogers’ market position. This strategic move is expected to enhance Rogers' service offerings and expand its customer base across Canada. Following the acquisition, Rogers has integrated Shaw's assets, which included a substantial increase in broadband and wireless capabilities.
As part of the integration, Rogers assumed $4.55 billion in Shaw's senior notes, with repayment of $500 million occurring in January 2024.
Dividends and Shareholder Returns
In 2024, Rogers continued to provide consistent returns to its shareholders. The company declared a dividend of $0.50 per share in each quarter, maintaining its commitment to returning value to investors.
| Dividend Declaration Date | Dividend per Share (Cdn$) | Total Cash Paid (Cdn$ millions) |
|---|---|---|
| January 31, 2024 | 0.50 | 266 |
| April 23, 2024 | 0.50 | 266 |
| July 23, 2024 | 0.50 | 267 |
Market Position and Future Outlook
As of 2024, Rogers Communications continues to solidify its position in the Canadian telecommunications landscape. With a robust revenue stream and strategic acquisitions, the company is well-positioned for growth in the coming years. The integration of Shaw is anticipated to yield operational efficiencies and enhance service offerings, thereby driving future revenue growth.
Overall, the financial health, strategic acquisitions, and commitment to shareholder returns underscore Rogers Communications Inc.'s strong market presence and potential for continued success in the telecommunications sector.
A Who Owns Rogers Communications Inc. (RCI)
Overview of Ownership Structure
As of 2024, Rogers Communications Inc. (RCI) has a dual-class share structure consisting of Class A Voting shares and Class B Non-Voting shares. The ownership distribution is as follows:
| Share Class | Ownership Percentage | Voting Rights |
|---|---|---|
| Class A Voting Shares | Approximately 4% | 1 vote per share |
| Class B Non-Voting Shares | Approximately 96% | No voting rights |
Major Shareholders
As of the latest data in 2024, the major shareholders of Rogers Communications include:
- Rogers family (including Edward Rogers): Approximately 10% ownership through Class A shares.
- Institutional investors: Holders of Class B Non-Voting shares make up the majority of the company's public float.
- Bank of Montreal, TD Asset Management, and other institutional funds: Significant holders of Class B Non-Voting shares.
Shareholder Composition
The shareholder composition of Rogers Communications, based on the latest filings, is structured as follows:
| Shareholder Type | Number of Shares (in millions) | Ownership Percentage |
|---|---|---|
| Rogers Family | 12 | 10% |
| Institutional Investors | 100 | 80% |
| Retail Investors | 8 | 10% |
Recent Changes in Ownership
In April 2023, Rogers completed the acquisition of Shaw Communications, which significantly altered its ownership structure and market capitalization. The transaction increased Rogers' total debt but also expanded its customer base and service offerings.
Dividends and Shareholder Returns
Rogers Communications has maintained a consistent dividend policy, as reflected in the following dividend declarations for 2024:
| Declaration Date | Dividend per Share (Cdn$) | Total Dividend Paid (Cdn$ millions) |
|---|---|---|
| January 31, 2024 | 0.50 | 266 |
| April 23, 2024 | 0.50 | 266 |
| July 23, 2024 | 0.50 | 267 |
Equity Derivatives and Shareholder Interests
As of September 30, 2024, Rogers Communications had equity derivatives outstanding for 6.0 million Class B Non-Voting shares with a weighted average price of $53.27. This reflects the company’s strategy to manage its equity financing and shareholder interests effectively.
Institutional Shareholder Influence
Institutional investors, which hold a majority of Class B Non-Voting shares, have significant influence over corporate governance and strategic decisions, despite lacking voting rights. This has been pivotal in shaping the company's direction post-acquisition of Shaw Communications.
Rogers Communications Inc. (RCI) Mission Statement
Mission Statement Overview
Rogers Communications Inc. (RCI) is committed to providing innovative communication solutions that connect Canadians and empower them to succeed. The company's mission emphasizes delivering high-quality services across wireless, cable, and media sectors while prioritizing customer satisfaction and operational excellence.
Core Values and Objectives
- Innovation: Striving to introduce new technologies and services that enhance user experience.
- Customer Commitment: Ensuring customer satisfaction through reliable and accessible communication services.
- Operational Excellence: Maintaining efficiency and effectiveness in all business operations.
- Community Engagement: Supporting local communities and contributing to social development initiatives.
Financial Performance Indicators
As of Q3 2024, RCI has demonstrated strong financial performance, indicating the effectiveness of its mission in driving growth and profitability.
| Financial Metrics | Q3 2024 | Q3 2023 | Year-on-Year Change (%) |
|---|---|---|---|
| Total Revenue (in millions) | $5,129 | $5,092 | 1% |
| Adjusted EBITDA (in millions) | $2,545 | $2,411 | 6% |
| Net Income (in millions) | $526 | ($99) | n/m |
| Basic Earnings per Share | $0.99 | ($0.19) | n/m |
| Free Cash Flow (in millions) | $915 | $745 | 23% |
Market Positioning
RCI is one of Canada's leading telecommunications companies, providing various services, including wireless communications, broadband, and cable television. The company's mission aligns with its strategic initiatives to capture market share and enhance customer loyalty.
Service Segment Performance
The performance across RCI's service segments reflects the effectiveness of its mission-oriented approach:
| Service Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Year-on-Year Change (%) |
|---|---|---|---|
| Wireless | $2,620 | $2,584 | 1% |
| Cable | $1,970 | $1,993 | (1%) |
| Media | $653 | $586 | 11% |
Investment and Growth Strategy
Rogers has committed to significant capital expenditures to enhance its network capabilities and service offerings, amounting to $977 million in Q3 2024. This investment is critical in supporting the company's mission to provide superior connectivity and customer experiences.
Dividends and Shareholder Returns
In Q3 2024, RCI returned $266 million in dividends to shareholders, reaffirming its commitment to delivering value to investors while pursuing growth initiatives.
| Dividend Information | Q3 2024 |
|---|---|
| Dividend per Share | $0.50 |
| Total Dividends Paid (in millions) | $266 |
Liquidity and Financial Stability
As of September 30, 2024, RCI reported available liquidity of $4.8 billion, consisting of $0.8 billion in cash and cash equivalents and $4.0 billion available under credit facilities. This robust liquidity position supports the company's operational and strategic flexibility.
Conclusion of Mission Statement Relevance
Rogers Communications Inc. continues to align its mission statement with its operational performance and strategic initiatives, ensuring it meets the evolving needs of its customers while providing strong returns for its shareholders.
How Rogers Communications Inc. (RCI) Works
Business Overview
Rogers Communications Inc. (RCI) operates in the telecommunications and media sectors in Canada. The company provides wireless communication services, cable television, internet services, and media content. As of September 30, 2024, RCI has been focusing on enhancing its service offerings and expanding its customer base through strategic acquisitions and improved operational efficiencies.
Financial Performance
For the third quarter of 2024, RCI reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenue | $5,129 million | $5,092 million | 1% |
| Wireless Revenue | $2,620 million | $2,584 million | 1% |
| Cable Revenue | $1,970 million | $1,993 million | (1%) |
| Media Revenue | $653 million | $586 million | 11% |
| Adjusted EBITDA | $2,545 million | $2,411 million | 6% |
| Net Income | $526 million | ($99 million) | n/m |
Segment Analysis
Wireless Segment
The wireless segment contributes significantly to RCI's revenue. In Q3 2024, the wireless service revenue was $2,066 million, an increase of 2% from the previous year. The adjusted EBITDA for this segment was $1,365 million, with a margin of 66.1%.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Postpaid Subscribers | 10,699,000 | 10,332,000 |
| Prepaid Subscribers | 1,161,000 | 1,278,000 |
| Monthly Churn Rate | 1.12% | 1.08% |
Cable Segment
The cable segment showed slight revenue decline but improved adjusted EBITDA. The total revenue was $1,970 million, with an adjusted EBITDA of $1,133 million, reflecting a margin of 57.5%.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Service Revenue | $1,962 million | $1,986 million |
| Equipment Revenue | $8 million | $7 million |
| Adjusted EBITDA | $1,133 million | $1,080 million |
Media Segment
The media segment experienced significant growth with a revenue increase of 11%, totaling $653 million for Q3 2024. The adjusted EBITDA for this segment was $134 million, a notable increase from the previous year.
Capital Expenditures and Free Cash Flow
RCI continues to invest in its infrastructure to enhance service delivery:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Capital Expenditures | $977 million | $1,017 million |
| Free Cash Flow | $915 million | $745 million |
Debt and Liquidity Position
As of September 30, 2024, RCI's liquidity position is as follows:
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $802 million |
| Total Available Liquidity | $4.8 billion |
| Debt Leverage Ratio | 4.6 |
Dividends
RCI declared dividends in 2024 as follows:
| Dividend Date | Dividend per Share | Total Dividends Paid (in millions) |
|---|---|---|
| January 31, 2024 | $0.50 | $266 million |
| April 23, 2024 | $0.50 | $266 million |
| July 23, 2024 | $0.50 | $267 million |
Outlook and Strategic Initiatives
RCI is focused on enhancing its market position through strategic investments and operational efficiencies. The company aims to further reduce its debt leverage ratio and improve overall financial health.
How Rogers Communications Inc. (RCI) Makes Money
Wireless Segment
Rogers Communications generates significant revenue from its wireless segment, which includes mobile phone services. In the third quarter of 2024, wireless service revenue reached $2,066 million, a 2% increase compared to the previous year. The total revenue for this segment was $2,620 million, reflecting a 1% growth year over year. For the year-to-date period, total wireless revenue amounted to $7,614 million, up 4% from $7,354 million in the previous year.
Cable Segment
The cable segment of Rogers also contributes significantly to its overall revenue. In Q3 2024, cable service revenue was $1,962 million, a slight decrease of 1% from the prior year. The total cable revenue for the year-to-date period was $5,893 million, an increase of 17% compared to $5,023 million in 2023. Adjusted EBITDA for the cable segment increased by 5% to $1,133 million in Q3 2024.
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Wireless Service Revenue | $2,066 million | $2,026 million | $6,050 million | $5,782 million |
| Cable Service Revenue | $1,962 million | $1,986 million | $5,857 million | $4,997 million |
| Total Wireless Revenue | $2,620 million | $2,584 million | $7,614 million | $7,354 million |
| Total Cable Revenue | $1,970 million | $1,993 million | $5,893 million | $5,023 million |
Media Segment
The media segment has shown growth, with revenue increasing by 11% to $653 million in Q3 2024, compared to $586 million in Q3 2023. Year-to-date media revenue also rose to $1,868 million, up from $1,777 million in the previous year. The adjusted EBITDA for the media segment saw a significant increase of 25%, reaching $134 million in Q3 2024.
Financial Performance
Rogers Communications reported an adjusted EBITDA of $2,545 million for Q3 2024, a 6% increase from $2,411 million in Q3 2023. The year-to-date adjusted EBITDA amounted to $7,084 million, reflecting a 13% increase from $6,252 million in the previous year. The company's net income for Q3 2024 was $526 million, compared to a net loss of $99 million in Q3 2023. Year-to-date net income reached $1,176 million, a significant increase from $521 million in the prior year.
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Adjusted EBITDA | $2,545 million | $2,411 million | $7,084 million | $6,252 million |
| Net Income | $526 million | ($99 million) | $1,176 million | $521 million |
Cost Structure and Efficiency Initiatives
The operating costs for Rogers Communications have been managed efficiently, with a reported decrease of 8% in operating costs in Q3 2024 compared to the previous year, primarily due to synergy initiatives from the Shaw acquisition. The total operating costs in the wireless segment were $1,255 million for Q3 2024, a reduction from $1,290 million in Q3 2023.
Liquidity and Cash Flow
As of September 30, 2024, Rogers Communications reported available liquidity of $4.8 billion, consisting of $0.8 billion in cash and cash equivalents and $4.0 billion available under credit facilities. The company generated cash provided by operating activities of $1,893 million in Q3 2024, compared to $1,754 million in Q3 2023. Free cash flow also increased to $915 million, up from $745 million in the same quarter of the prior year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Available Liquidity | $4.8 billion | $5.9 billion |
| Cash Provided by Operating Activities | $1,893 million | $1,754 million |
| Free Cash Flow | $915 million | $745 million |
Dividend Payments
Rogers Communications declared a dividend of $0.50 per share on October 23, 2024, with total dividends paid in Q3 2024 amounting to $266 million. The company has consistently returned value to shareholders through dividends, reflecting its strong financial performance and cash flow generation.
Rogers Communications Inc. (RCI) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Rogers Communications Inc. (RCI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Rogers Communications Inc. (RCI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Rogers Communications Inc. (RCI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.