Financial Performance - Total revenue for 2023 reached CAD 19,308 million, a 25% increase from CAD 15,396 million in 2022[72] - Total service revenue increased by 27% to CAD 16,845 million, up from CAD 13,305 million in the previous year[72] - Adjusted EBITDA rose by 34% to CAD 8,581 million, compared to CAD 6,393 million in 2022[72] - Adjusted EBITDA margin improved to 44.4%, an increase of 2.9 percentage points from 41.5%[72] - Net income decreased by 49% to CAD 849 million, down from CAD 1,680 million in 2022[72] - Adjusted net income increased by 26% to CAD 2,406 million, compared to CAD 1,915 million in the previous year[72] - Basic earnings per share fell to CAD 1.62, a 51% decrease from CAD 3.33 in 2022[72] - Free cash flow increased by 36% to CAD 2,414 million, up from CAD 1,773 million in 2022[72] Capital Expenditures and Investments - Capital expenditures for 2023 were CAD 3,934 million, an increase of 28% from CAD 3,075 million[72] - The company invested a record $3.9 billion in capital expenditures, primarily in wireless and wireline network infrastructure[162] - Capital expenditures totaled $3,934 million, exceeding the guidance range of $3,700 million to $3,900 million[172] Shaw Transaction - The Shaw Transaction was completed for a total consideration of $20.5 billion, enhancing the company's scale and capabilities in telecommunications[95] - The acquisition included $8.0 billion in property, plant, and equipment, and $6.0 billion in intangible assets, resulting in a significant increase in depreciation and finance costs[103] - The Shaw Transaction was successfully completed in April 2023, enhancing service capabilities and customer support[172] - Targeted cost synergies from the Shaw acquisition are expected to materially increase adjusted EBITDA and net income on an ongoing basis[104] Subscriber Growth and Service Revenue - Wireless service revenue grew by 9% to CAD 7,802 million, while cable revenue surged by 72% to CAD 7,005 million[72] - Wireless service revenue rose by 9%, attributed to growth in mobile phone subscribers and Shaw Mobile subscribers acquired through the Shaw Transaction[83] - The total number of postpaid mobile phone subscribers reached 10.498 million, with net additions of 674,000 in 2023[227] - Cable service revenue increased by 72% to $6.962 billion, reflecting a higher average revenue per account (ARPA) of $142.58[237] Debt and Liquidity - The debt leverage ratio was 5.0 as of December 31, 2023, up from 3.3 in 2022, reflecting the impact of the Shaw Transaction[90] - The company ended the year with approximately $5.9 billion in available liquidity, an increase from $4.9 billion in 2022[92] - Rogers Communications has $19 billion in cash, including $13 billion in cash and restricted cash, and $6 billion borrowed from a non-revolving term loan facility[105] - The Shaw Transaction is expected to significantly impact the company's capital structure, with plans to return the debt leverage ratio to approximately 3.5 within 36 months[208] Network and Service Expansion - The company serves over 2,200 communities with the largest 5G network in Canada as of December 31, 2023[109] - The company expanded its 5G network to 267 new communities and launched 5G service in the busiest sections of the Toronto Transit Commission subway system[162] - The company is focused on connecting more Canadians to its coast-to-coast Internet network and delivering reliable connectivity[165] - The company is investing in fixed wireless access services and expanding its cable footprint to connect rural and underserved areas, focusing on next-generation broadband wireless data networks like 5G[193] Media and Other Operations - Rogers has a diversified media portfolio, including rights to deliver over 1,300 NHL games per season through the 2025-2026 NHL season[116] - The company operates several television networks and 52 radio stations across Canada, reaching a wide audience[119] - Media revenue increased by 3% to $2.335 billion, driven by advertising sales and subscriptions[246][247] - Adjusted EBITDA for media operations rose by 12% to $77 million, with an adjusted EBITDA margin of 3.3%[246] Future Outlook - For 2024, the company expects total service revenue to increase by 8% to 10% and adjusted EBITDA to rise by 12% to 15%[181] - The company plans to maintain capital expenditures between $3,800 million and $4,000 million in 2024[181] - The company aims to return cash to shareholders while maintaining network advantages in a competitive market[180]

Rogers Communications Inc. (NYSE:RCI) Q4 2023 Earnings Conference Call February 1, 2024 8:00 AM ET Company Participants Paul Carpino - VP, Investor Relations Tony Staffieri - President and CEO Glenn Brandt - CFO Conference Call Participants Drew McReynolds - RBC Capital Markets Tim Casey - BMO Capital Markets Sebastiano Petti - J.P. Morgan Vince Valentini - TD Securities Maher Yaghi - Scotiabank Stephanie Price - CIBC Capital Markets Jerome Dubreuil - Desjardins Securities Aravinda Galappatthige - Canaccord ...

[Report Overview and Key Highlights](index=1&type=section&id=Report%20Overview%20and%20Key%20Highlights) [Q4 & Full-Year 2023 Performance Summary](index=1&type=section&id=Q4%20%26%20Full-Year%202023%20Performance%20Summary) The company achieved record 2023 results driven by the Shaw integration and strong wireless and cable performance - The company achieved record 2023 results, attributing the success to strong execution on the Shaw acquisition and industry-leading performance, with more Canadians choosing Rogers for the second consecutive year[1](index=1&type=chunk) **Full-Year 2023 Key Metrics vs 2022** | Metric | 2023 Value | YoY Change | | :--- | :--- | :--- | | Service Revenue | $16.8 billion | +27% | | Adjusted EBITDA | $8.6 billion | +34% | | Free Cash Flow | $2.4 billion | +36% | | Postpaid Mobile Phone Net Adds | 674,000 | +24% | **Q4 2023 Key Metrics vs Q4 2022** | Metric | Q4 2023 Value/Change | | :--- | :--- | | Total Service Revenue | +30% | | Adjusted EBITDA | +39% | | Wireless Service Revenue | +9% | | Cable Service Revenue | +94% | | Postpaid Mobile Phone Net Adds | 184,000 | | Retail Internet Net Additions | 20,000 | - Shaw integration is ahead of schedule, with **$375 million in synergies realized** since closing and an exit run rate of **$750 million**, six months ahead of plan[2](index=2&type=chunk) [Consolidated Financial Highlights](index=2&type=section&id=Consolidated%20Financial%20Highlights) Q4 revenue and adjusted EBITDA grew significantly, though net income declined due to Shaw acquisition-related costs **Consolidated Financial Highlights (Q4 & FY 2023 vs 2022)** | (In millions of Canadian dollars) | Q4 2023 | Q4 2022 | % Chg | FY 2023 | FY 2022 | % Chg | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 5,335 | 4,166 | 28% | 19,308 | 15,396 | 25% | | Total Service Revenue | 4,470 | 3,436 | 30% | 16,845 | 13,305 | 27% | | Adjusted EBITDA | 2,329 | 1,679 | 39% | 8,581 | 6,393 | 34% | | Net Income | 328 | 508 | (35%) | 849 | 1,680 | (49%) | | Adjusted Net Income | 630 | 554 | 14% | 2,406 | 1,915 | 26% | | Adjusted Diluted EPS | $1.19 | $1.09 | 9% | $4.59 | $3.78 | 21% | | Free Cash Flow | 823 | 635 | 30% | 2,414 | 1,773 | 36% | - The decrease in net income was primarily driven by higher depreciation and amortization from assets acquired in the Shaw Transaction, increased restructuring and acquisition costs, and higher finance costs[10](index=10&type=chunk) [Strategic Highlights](index=3&type=section&id=Strategic%20Highlights) The company advanced its strategic objectives through network investment, product innovation, and the Shaw integration - Built the biggest and best networks: Invested a record **$3.9 billion in capital**, expanded the 5G network to 267 new communities, and launched 5G service in the TTC subway system[16](index=16&type=chunk) - Delivered easy to use, reliable products: Introduced Rogers Internet and TV in Western Canada, upgraded Shaw Mobile customers to 5G, and launched the red Rogers Mastercard with a 0% interest device payment plan[16](index=16&type=chunk) - Became the first choice for Canadians: Led the industry with **674,000 postpaid mobile phone net additions** and helped bring major events like Taylor Swift's tour to Canada[16](index=16&type=chunk) - Invested in Canada: Successfully completed the historic Shaw Transaction, repatriated Shaw customer service teams to be 100% Canada-based, and expanded the low-cost Connected for Success internet program to Western Canada[21](index=21&type=chunk) [2023 Guidance Achievement & 2024 Outlook](index=4&type=section&id=2023%20Guidance%20Achievement%20%26%202024%20Outlook) The company met its 2023 guidance and projects continued strong revenue and adjusted EBITDA growth for 2024 **2023 Guidance Achievement** | Metric | 2023 Guidance Range | 2023 Actual | Achievement | | :--- | :--- | :--- | :--- | | Total Service Revenue Growth | 26% to 30% | 27% | Achieved | | Adjusted EBITDA Growth | 33% to 36% | 34% | Achieved | | Capital Expenditures | $3.7B to $3.9B | $3.934B | Exceeded | | Free Cash Flow | $2.2B to $2.5B | $2.414B | Achieved | **2024 Financial Guidance** | Metric | 2024 Guidance Range | | :--- | :--- | | Total Service Revenue Growth | 8% to 10% | | Adjusted EBITDA Growth | 12% to 15% | | Capital Expenditures | $3.8B to $4.0B | | Free Cash Flow | $2.9B to $3.1B | [Segment Performance](index=8&type=section&id=Segment%20Performance) [Wireless](index=8&type=section&id=Wireless) The Wireless segment saw strong revenue and subscriber growth, though ARPU slightly decreased due to Shaw Mobile **Wireless Financial Results (Q4 2023 vs Q4 2022)** | (In millions of dollars) | Q4 2023 | Q4 2022 | % Chg | | :--- | :--- | :--- | :--- | | Service Revenue | 2,020 | 1,856 | 9% | | Equipment Revenue | 848 | 722 | 17% | | **Total Revenue** | **2,868** | **2,578** | **11%** | | Adjusted EBITDA | 1,291 | 1,173 | 10% | | Adjusted EBITDA Margin | 63.9% | 63.2% | +0.7 pts | **Wireless Subscriber Results (Q4 2023 vs Q4 2022)** | (In thousands, except where noted) | Q4 2023 | Q4 2022 | Change | | :--- | :--- | :--- | :--- | | Postpaid Mobile Phone Net Additions | 184 | 193 | (9) | | Total Postpaid Mobile Phone Subscribers | 10,498 | 9,392 | 1,106 | | Postpaid Churn (monthly) | 1.67% | 1.24% | +0.43 pts | | Mobile Phone ARPU (monthly) | $57.96 | $58.69 | ($0.73) | - The **9% increase in service revenue** was primarily due to growth in the mobile phone subscriber base and the impact of Shaw Mobile subscribers acquired in April 2023[38](index=38&type=chunk) [Cable](index=10&type=section&id=Cable) The Cable segment's revenue and adjusted EBITDA more than doubled, driven by the transformative Shaw acquisition **Cable Financial Results (Q4 2023 vs Q4 2022)** | (In millions of dollars) | Q4 2023 | Q4 2022 | % Chg | | :--- | :--- | :--- | :--- | | Service Revenue | 1,965 | 1,011 | 94% | | **Total Revenue** | **1,982** | **1,019** | **95%** | | Adjusted EBITDA | 1,111 | 522 | 113% | | Adjusted EBITDA Margin | 56.1% | 51.2% | +4.9 pts | **Cable Subscriber Results (Q4 2023 vs Q4 2022)** | (In thousands, except where noted) | Q4 2023 | Q4 2022 | Change | | :--- | :--- | :--- | :--- | | Retail Internet Net Additions | 20 | 7 | 13 | | Total Retail Internet Subscribers | 4,162 | 2,284 | 1,878 | | ARPA (monthly) | $141.96 | $129.92 | $12.04 | - The **94% increase in service revenue** was primarily due to the acquisition of Shaw, which contributed approximately **$1 billion** for the quarter[45](index=45&type=chunk) [Media](index=12&type=section&id=Media) The Media segment's revenue and adjusted EBITDA declined significantly due to lower sports-related revenue **Media Financial Results (Q4 2023 vs Q4 2022)** | (In millions of dollars) | Q4 2023 | Q4 2022 | % Chg | | :--- | :--- | :--- | :--- | | Revenue | 558 | 606 | (8%) | | Operating Expenses | 554 | 549 | 1% | | Adjusted EBITDA | 4 | 57 | (93%) | | Adjusted EBITDA Margin | 0.7% | 9.4% | (8.7 pts) | - The **8% decrease in revenue** was mainly due to lower sports-related revenue associated with a distribution from Major League Baseball in 2022 that did not repeat in 2023[49](index=49&type=chunk)[51](index=51&type=chunk) [Capital Expenditures](index=13&type=section&id=Capital%20Expenditures) Full-year capital expenditures reached a record $3.9 billion, driven by Cable network upgrades and Media projects **Capital Expenditures by Segment (Q4 2023 vs Q4 2022)** | (In millions of dollars) | Q4 2023 | Q4 2022 | % Chg | | :--- | :--- | :--- | :--- | | Wireless | 334 | 421 | (21%) | | Cable | 448 | 235 | 91% | | Media | 113 | 73 | 55% | | Corporate | 51 | 47 | 9% | | **Total Capital Expenditures** | **946** | **776** | **22%** | - The increase in Cable capex reflects the Shaw acquisition and investments in fibre-to-the-home (FTTH) and DOCSIS 4.0 evolution[55](index=55&type=chunk) - The increase in Media capex was primarily due to expenditures related to the second phase of the Rogers Centre modernization project[56](index=56&type=chunk) [Liquidity and Financial Resources](index=17&type=section&id=Liquidity%20and%20Financial%20Resources) [Cash Flow and Financial Condition](index=17&type=section&id=Cash%20Flow%20and%20Financial%20Condition) Free cash flow and liquidity increased, while the debt leverage ratio rose to 4.7x following the Shaw acquisition **Cash Flow Summary (Q4 2023 vs Q4 2022)** | (In millions of dollars) | Q4 2023 | Q4 2022 | | :--- | :--- | :--- | | Cash provided by operating activities | 1,379 | 1,145 | | Cash used in investing activities | (224) | (1,011) | | Cash (used in) financing activities | (2,882) | (358) | - As of December 31, 2023, the company had **$5.9 billion of available liquidity**, up from $4.9 billion at the end of 2022[12](index=12&type=chunk)[97](index=97&type=chunk) - The debt leverage ratio was **4.7x** as at December 31, 2023, calculated on a pro forma basis including trailing 12-month adjusted EBITDA from Shaw[102](index=102&type=chunk)[104](index=104&type=chunk) [Debt Management](index=18&type=section&id=Debt%20Management) The company actively managed its debt, making a net repayment of $2.75 billion in Q4 using asset sale proceeds - In December 2023, Rogers sold its investments in Cogeco for **$829 million** and used the proceeds to repay a portion of its outstanding term loan facility[74](index=74&type=chunk) - Net repayment of long-term debt in Q4 2023 was **$2.75 billion**, including repaying US$850 million and C$500 million of senior notes at maturity[86](index=86&type=chunk)[90](index=90&type=chunk) - The term loan facility used for the Shaw Transaction was reduced by **$1.1 billion** during the quarter, leaving an outstanding balance of $4.4 billion[87](index=87&type=chunk) [Shareholder Returns and Information](index=22&type=section&id=Shareholder%20Returns%20and%20Information) The company maintained its quarterly dividend and utilized its dividend reinvestment plan to issue new shares - The Board declared a quarterly dividend of **$0.50 per Class A and Class B share** on January 31, 2024[93](index=93&type=chunk) - In Q3 and Q4, dividends of **$74 million and $75 million**, respectively, were settled through the issuance of Class B Non-Voting Shares under the dividend reinvestment plan (DRIP)[94](index=94&type=chunk) - Total common shares outstanding increased to **530.0 million**, primarily due to issuing 23.6 million Class B shares for the Shaw Transaction and 2.7 million shares via the DRIP[107](index=107&type=chunk) [Financial Risk Management](index=26&type=section&id=Financial%20Risk%20Management) [Derivative Instruments and Hedging Strategy](index=26&type=section&id=Derivative%20Instruments%20and%20Hedging%20Strategy) The company uses derivatives to hedge interest rate and foreign exchange risk, with 85.6% of debt at fixed rates - The company uses derivative instruments solely to manage risk related to foreign exchange rates and interest rates, not for speculative purposes[109](index=109&type=chunk) - As of Dec 31, 2023, **85.6% of outstanding debt was at a fixed interest rate**, and all US$14.75 billion of US dollar-denominated debt was hedged for foreign exchange risk[109](index=109&type=chunk)[115](index=115&type=chunk) - The company uses equity derivatives (total return swaps) to hedge market price risk for its stock-based compensation programs, covering 6.0 million Class B shares as of year-end[122](index=122&type=chunk)[123](index=123&type=chunk) **Net Mark-to-Market Value of Derivatives** | (In millions of Cdn$) | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Net Debt Derivative Liability/(Asset) | (571) | 988 | | Net Expenditure Derivative Liability/(Asset) | (15) | 94 | | Net Equity Derivative Asset | 48 | 54 | | **Net Mark-to-Market Liability/(Asset)** | **(538)** | **1,136** | [Supplementary Information and Forward-Looking Statements](index=30&type=section&id=Supplementary%20Information%20and%20Forward-Looking%20Statements) [Non-GAAP Measures and Reconciliations](index=31&type=section&id=Non-GAAP%20Measures%20and%20Reconciliations) The report uses non-GAAP measures like Adjusted EBITDA and Free Cash Flow to provide a clearer view of performance - The company uses non-GAAP measures like Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow to assess performance, as they are believed to provide a better analysis of business trends[133](index=133&type=chunk) **Reconciliation of Net Income to Adjusted EBITDA (Q4 2023)** | (In millions of dollars) | Amount | | :--- | :--- | | Net income | 328 | | Add: Income tax expense | 194 | | Add: Finance costs | 568 | | Add: Depreciation and amortization | 1,172 | | Add (deduct): Other items & Restructuring | 67 | | **Adjusted EBITDA** | **2,329** | **Reconciliation of Net Income to Adjusted Net Income (Q4 2023)** | (In millions of dollars) | Amount | | :--- | :--- | | Net income | 328 | | Add: Restructuring, acquisition and other | 86 | | Add: D&A on fair value increment of Shaw assets | 249 | | Deduct: Income tax impact of adjustments | (85) | | Add: Income tax adjustment, tax rate change | 52 | | **Adjusted net income** | **630** | [Condensed Consolidated Financial Statements](index=35&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Financial statements show total assets grew to $69.3 billion and liabilities to $58.8 billion due to the Shaw deal - Total assets grew to **$69.3 billion** at year-end 2023 from $55.7 billion at year-end 2022, primarily due to assets acquired from the Shaw Transaction[144](index=144&type=chunk) - Total liabilities increased to **$58.8 billion** from $45.6 billion over the same period, driven by long-term debt and other liabilities assumed or incurred for the Shaw acquisition[144](index=144&type=chunk) [Forward-Looking Information, Risks, and Assumptions](index=40&type=section&id=Forward-Looking%20Information%2C%20Risks%2C%20and%20Assumptions) The 2024 guidance is subject to risks including economic conditions, competition, and Shaw integration challenges - The 2024 guidance is based on key assumptions such as continued competitive intensity, stable economic conditions, and no major adverse regulatory or economic shifts[156](index=156&type=chunk) - A substantial portion of 2024 US dollar-denominated expenditures is assumed to be hedged at an average exchange rate of **$1.33/US$**[158](index=158&type=chunk) - Identified risks include regulatory changes, economic conditions, competitive pressures, and specific risks from the Shaw Transaction, such as difficulties in integration and achieving expected synergies[153](index=153&type=chunk)

Non-GAAP and Other Financial Measures Adjusted net debt and debt leverage ratio We use adjusted net debt and debt leverage ratio to conduct valuation-related analysis and to make capital structure-related decisions. | --- | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------- ...

TORONTO, Dec. 20, 2023 (GLOBE NEWSWIRE) -- Rogers Communications Inc. (TSX:RCI) (NYSE:RCI) plans to release its fourth quarter 2023 financial results on Thursday, February 1, 2024, before North American financial markets open. The results will be distributed by newswire and posted at investors.rogers.com. Rogers' management will host its quarterly teleconference with the investment community to discuss the results and outlook at 8:00 a.m. ET. A live webcast of the teleconference will be available on the Inv ...

Rogers Communications Inc. (NYSE:RCI) Q3 2023 Earnings Call Transcript November 9, 2023 8:00 AM ET Company Participants Paul Carpino - Vice President of Investor Relations Tony Staffieri - President, CEO and Director Glenn Brandt - Chief Financial Officer Conference Call Participants Drew McReynolds - RBC Sebastiano Petti - JPMorgan Vince Valentini - TD Securities David Barden - Bank of America Merrill Lynch Maher Yaghi - Scotiabank Tim Casey - BMO Aravinda Galappatthige - Canaccord Annuity Batya Levi - UBS ...

MANAGEMENT'S DISCUSSION AND ANALYSIS Exhibit 99.1 This Management's Discussion and Analysis (MD&A) contains important information about our business and our performance for the three and nine months ended September 30, 2023, as well as forward-looking information (see "About Forward-Looking Information") about future periods. This MD&A should be read in conjunction with our Third Quarter 2023 Interim Condensed Consolidated Financial Statements (Third Quarter 2023 Interim Financial Statements) and notes ther ...

Company Participants | --- | |--------------------------------------------| | | | Conference Call Participants | | Vince Valentini - TD Securities | | Sebastiano Petti - JPMorgan | | Tim Casey - BMO | | Matt Griffiths - BofA | | Drew McReynolds - RBC | | Maher Yaghi - Scotiabank | | Aravinda Galappatthige - Canaccord Annuity | | Stephanie Price - CIBC | | Jerome Dubreuil - Desjardin | | David McFadgen - Cormark Securities | Thank you for standing by. This is the conference operator. Welcome to the Rogers Co ...

This Management's Discussion and Analysis (MD&A) contains important information about our business and our performance for the three and six months ended June 30, 2023, as well as forward-looking information about future periods. This MD&A should be read in conjunction with our Second Quarter 2023 Interim Condensed Consolidated Financial Statements (Second Quarter 2023 Interim Financial Statements) and notes thereto, which have been prepared in accordance with International Accounting Standard 34, Interim F ...

Rogers Communications Inc. (NYSE:RCI) Q1 2023 Earnings Conference Call April 26, 2023 8:00 AM ET Company Participants Paul Carpino - VP, IR Tony Staffieri - President and CEO Glenn Brandt - CFO Conference Call Participants Vince Valentini - TD Cowen Maher Yaghi - Scotiabank Sebastiano Petti - JPMorgan Drew McReynolds - RBC Capital Markets David Barden - Bank of America Merrill Lynch Stephanie Price - CIBC World Markets Tim Casey - BMO Capital Markets Simon Flannery - Morgan Stanley Operator Thank you for st ...