Company Overview - RCI Hospitality Holdings, Inc. is the leading company in the United States for adult nightclubs and sports bars/restaurants with more than 60 locations [1] Brand Presence - The company operates through its subsidiaries and has a diverse range of brands available for consumers [1]

Performance and Market Position - Roger Communications (RCI) shares have dropped 23.4% year to date (YTD), underperforming the Zacks Consumer Discretionary sector's growth of 10.1% and the Zacks Cable Television industry's increase of 0.4% [1] - RCI's underperformance is attributed to stiff competition from TELUS and BCE in the wireless operations and communication cable markets [2] - RCI's cable revenues reduced 1% year over year to $1.97 billion in Q3 2024 due to a decline in the Home Phone and Satellite subscriber base [2] Technological Advancements and Portfolio Expansion - RCI tested DOCSIS 4.0 with Comcast XER modem to increase download speed to four gigabits and upload speed to one gigabit, integrating AI, cloud functions, and data processing capabilities [3] - RCI enhanced the DOCSIS 3.1 platform to develop network resilience and provide stable connectivity with quicker download and upload speeds [4] - RCI partnered with SpaceX to provide emergency alerts via satellite to mobile phones in disaster-affected areas in Canada [4] - RCI inked a strategic agreement to buyout Bell's 37.5% ownership in Maple Leaf Sports & Entertainment (MLSE), becoming the largest owner with a 75% stake, expected to conclude by mid-2025 [5] - RCI partnered with Disney to bring Disney+ to Ignite TV users free of cost and with Warner Bros. Discovery to launch and distribute Discovery channels [6] Financial Guidance and Earnings Estimates - RCI expects total service revenues to grow between 8% and 10% in 2024, with adjusted EBITDA growth in the range of 12-15% [7] - Capital expenditure is expected between C$3.8 billion and C$4 billion, with free cash flow expected in the range of C$2.9-C$3.1 billion [7] - The Zacks Consensus Estimate for RCI's fiscal 2024 revenues is pegged at $14.78 billion, indicating year-over-year growth of 3.33% [8] - The consensus mark for earnings is pegged at $3.55 per share, implying year-over-year growth of 5.34% [8] - The Zacks Consensus Estimate for Q4 fiscal 2024 earnings is pegged at $1.05 per share, indicating year-over-year growth of 20.69% [8] - The consensus mark for Q4 fiscal 2024 revenues is pegged at $3.87 billion, indicating a year-over-year decline of 1.22% [9] - RCI's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average surprise of 3.87% [9] Valuation and Market Outlook - RCI shares are currently undervalued, with a Value Score of A and a forward 12-month Price/Earnings (P/E) ratio of 9.23X, lower than the Zacks Consumer Discretionary sector's 19.34X [10] - RCI has a Zacks Rank 3 (Hold), suggesting investors may want to wait for a more favorable entry point [10]

Company Overview - RCI Hospitality Holdings, Inc. is a leading company in the adult nightclubs and sports bars-restaurants sector in the United States, operating more than 60 locations through its subsidiaries [1] Business Operations - The company focuses on adult entertainment and restaurant businesses, which are subject to various operational and management challenges [2] - RCI Hospitality Holdings, Inc. has a diverse portfolio of brands that can be explored on their official website [1] Market Environment - The business climate in the cities where RCI operates can significantly impact its performance [2] - The company faces competition and regulatory challenges specific to the adult entertainment and restaurant industries [2]

Financial Data and Key Metrics Changes - Rogers reported a 2% increase in wireless service revenue year-over-year and a 5% increase in adjusted EBITDA, achieving a wireless margin of 66%, which is an all-time high [9][15][17] - Total service revenue increased by 1% and adjusted EBITDA rose by 6% year-over-year, leading to a consolidated EBITDA margin increase of 230 basis points to 50% [17] - Free cash flow for the quarter was $915 million, up 23% from the prior year, primarily due to higher adjusted EBITDA and lower interest expenses [17] Business Line Data and Key Metrics Changes - Wireless postpaid mobile phone net additions were 101,000, while prepaid net additions were 93,000, contributing to a total of 194,000 net additions for the quarter [14][15] - Retail Internet net additions reached 33,000, an increase of 83% from the previous year, with year-to-date retail Internet net additions totaling 85,000, a 50% increase year-over-year [6][16] - The Sports & Media segment experienced an 11% revenue growth and a 25% increase in adjusted EBITDA for the quarter [10][16] Market Data and Key Metrics Changes - The Canadian market remains competitive, with Rogers maintaining industry-leading market share in wireless and cable [3][5] - The company has seen a decline in roaming revenue year-over-year, which negatively impacted ARPU [67] - The overall Canadian telecommunications market is expected to grow between 4% to 4.5%, despite recent government limitations on foreign students and temporary workers [47][61] Company Strategy and Development Direction - Rogers is focused on maintaining an investment-grade balance sheet while investing in growth across its core businesses [4][20] - The company announced a $7 billion structured equity financing to pay down debt, expecting to reduce its debt leverage ratio to 3.7x by year-end, ahead of the previously communicated target of 4.2x [3][19] - The strategy includes a clear differentiation between the premium 5G brand and the Chatr prepaid brand, which has been effective in driving customer acquisition [5][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate cash from operations and achieve significant cost synergies, projecting $3 billion in free cash flow for 2024 [53] - The competitive environment is expected to remain challenging, particularly in the wireless segment, but the company aims to sustain stable ARPU and continue leading in net additions [23][46] - Management remains optimistic about the long-term growth potential in the Canadian market, despite short-term challenges related to immigration policies [47][61] Other Important Information - The company is advancing its DOCSIS roadmap and has successfully trialed new modem technologies, reinforcing its commitment to innovation [8] - Rogers signed a strategic agreement to acquire Bell's 37.5% stake in Maple Leaf Sports & Entertainment, enhancing its position in the sports and media sector [10][50] Q&A Session Summary Question: Details on structured equity financing and its impact on operations - Management clarified that the transaction involves selling a minority equity interest in a portion of the wireless backhaul transport infrastructure, maintaining full operational control without any leaseback arrangement [22] Question: Competitive environment in wireless and sustainability of stable ARPU - Management acknowledged the competitive nature of the market but emphasized their disciplined promotional strategies and focus on the premium brand to maintain stable ARPU [23][24] Question: Clarification on the minority interest deal and its implications - The minority interest will not affect Rogers' operational control, and the revenue model is based on tiered wholesale rates as data traffic grows [35][36] Question: Future cash flows and the impact of the equity transaction - Management expressed confidence in cash generation from operations and indicated that the structured equity transaction would not significantly impact free cash flow obligations [53][60] Question: Regulatory environment and roaming revenue impact - Management noted a decline in roaming revenue year-over-year and indicated adjustments to their value proposition to increase unique roamers [67]

Investors might want to bet on Rogers Communication (RCI) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Indi ...

Rogers Communication (RCI) reported $3.76 billion in revenue for the quarter ended September 2024, representing a year-over-year decline of 1%. EPS of $1.04 for the same period compares to $0.95 a year ago.The reported revenue represents a surprise of -1.39% over the Zacks Consensus Estimate of $3.81 billion. With the consensus EPS estimate being $1.07, the EPS surprise was -2.80%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...

Earnings Performance - Rogers Communication reported quarterly earnings of $1 04 per share missing the Zacks Consensus Estimate of $1 07 per share [1] - The earnings surprise was -2 80% compared to the expected $1 07 per share [1] - In the previous quarter the company posted earnings of $0 85 per share surpassing the estimate of $0 83 per share with a surprise of 2 41% [1] - Over the last four quarters the company has surpassed consensus EPS estimates three times [1] Revenue Performance - The company posted revenues of $3 76 billion for the quarter ended September 2024 missing the Zacks Consensus Estimate by 1 39% [1] - This compares to year-ago revenues of $3 8 billion [1] - The company has not been able to beat consensus revenue estimates over the last four quarters [1] Stock Performance - Rogers Communication shares have lost about 16 2% since the beginning of the year versus the S&P 500's gain of 21 5% [2] Earnings Outlook - The company's earnings outlook is crucial for understanding future stock performance [3] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions [3] - The estimate revisions trend for Rogers Communication is favorable translating into a Zacks Rank 2 (Buy) [4] - The current consensus EPS estimate is $0 95 on $3 92 billion in revenues for the coming quarter and $3 73 on $15 07 billion in revenues for the current fiscal year [4] Industry Impact - The Cable Television industry is currently in the top 19% of the 250 plus Zacks industries [5] - The top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [5] - Another company in the same industry Cable One is expected to post quarterly earnings of $9 93 per share representing a year-over-year change of -7 9% [5] - Cable One's revenues are expected to be $390 78 million down 7% from the year-ago quarter [5]

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, 2024, 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 2024 Interim Condensed Consolidated Financial Statements (Third Quarter 2024 Interim Financial Statements) and notes ther ...

In its upcoming report, Rogers Communication (RCI) is predicted by Wall Street analysts to post quarterly earnings of $1.01 per share, reflecting an increase of 6.3% compared to the same period last year. Revenues are forecasted to be $3.81 billion, representing a year-over-year increase of 0.4%.The consensus EPS estimate for the quarter has undergone a downward revision of 1.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed thei ...

Rogers Communication (RCI) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on October 24, 2024, might help the stock move higher if these key numbers are b ...