Group 1 - Rogers Communication reported $3.92 billion in revenue for the quarter ended December 2024, showing a year-over-year decline of 0% and an EPS of $1.04 compared to $0.87 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $3.76 billion by +4.08%, while the EPS surprise was +9.47% against a consensus estimate of $0.95 [1] - The stock has returned -6.4% over the past month, underperforming the Zacks S&P 500 composite's +1.2% change, and currently holds a Zacks Rank 4 (Sell) [3] Group 2 - Wireless Subscriber metrics include gross additions of 561 thousand postpaid mobile phone subscribers, slightly below the average estimate of 580.13 thousand [4] - Total postpaid mobile phone subscribers reached 10.77 million, close to the average estimate of 10.78 million, with a postpaid churn rate of 1.5%, better than the estimated 1.6% [4] - The company reported net additions of 14 thousand cable subscribers, exceeding the average estimate of 11.51 thousand, with total customer relationships at 4.68 million, matching the average estimate [4]

Q4 2024 Results January 30, 2025 3Adjusted diluted earnings per share is a non-GAAP ratio. Adjusted net income is a non-GAAP financial measure and a component of adjusted diluted earnings per share. 1 Cautionary note The following materials are for presentation purposes only. They accompany the discussions held during Rogers Communications Inc.'s (Rogers) investor conference call on January 30, 2025. Certain statements made in this presentation, including, but not limited to, statements relating to expected ...

Core Viewpoint - Rogers Communication reported quarterly earnings of $1.04 per share, exceeding the Zacks Consensus Estimate of $0.95 per share, and showing an increase from $0.87 per share a year ago, indicating a 9.47% earnings surprise [1][2] Financial Performance - The company posted revenues of $3.92 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.08%, with year-ago revenues also at $3.92 billion [2] - Over the last four quarters, Rogers Communication has surpassed consensus EPS estimates three times [2] Stock Performance and Outlook - Rogers Communication shares have declined approximately 6.4% since the beginning of the year, contrasting with the S&P 500's gain of 2.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.83 on revenues of $3.47 billion, and for the current fiscal year, it is $3.62 on revenues of $14.77 billion [7] Industry Context - The Cable Television industry, to which Rogers Communication belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, indicating potential challenges ahead [8] - Another company in the same industry, Cable One, is expected to report a quarterly earnings decline of 7% year-over-year, with revenues projected to decrease by 5.2% [9]

Financial Performance - Total revenue for Q4 2024 was CAD 5,481 million, a 3% increase from CAD 5,335 million in Q4 2023[38] - Adjusted EBITDA for Q4 2024 was CAD 2,533 million, reflecting a 9% increase compared to CAD 2,329 million in Q4 2023[38] - Net income for Q4 2024 rose by 70% to CAD 558 million, compared to CAD 328 million in Q4 2023[38] - Basic earnings per share increased by 68% to CAD 1.04 in Q4 2024, up from CAD 0.62 in Q4 2023[38] - Adjusted net income for Q4 2024 was $794 million, a 26% increase from $630 million in Q4 2023[74] - Adjusted EBITDA for the twelve months ended December 31, 2024, reached $9,617 million, up 12% from $8,581 million in 2023[74] - Free cash flow for the full year 2024 was CAD 3,045 million, representing a 26% increase from CAD 2,414 million in 2023[38] Revenue Segments - Wireless segment revenue increased by 4% to CAD 2,981 million in Q4 2024, while Cable segment revenue remained stable at CAD 1,983 million[38] - Wireless service revenue grew by 2% to CAD 2,058 million in Q4 2024, driven by subscriber growth and bundled service plans[41] - Media revenue increased by 10% to $616 million in Q4 2024, supported by higher sports and entertainment-related revenue[54] - Total service revenue for the year increased, with wireless mobile phone average revenue per user (ARPU) showing positive trends[129] Subscriber Growth - Total postpaid mobile phone subscribers reached 10,768 thousand, an increase of 270 thousand from the previous year[40] - Total customer relationships increased by 47, reaching 4,683 in Q4 2024 compared to Q4 2023[49] - The total number of retail Internet subscribers increased by 111 to 4,273 in Q4 2024[49] - Subscriber counts in both wireless and cable segments showed growth, contributing to overall revenue increases[129] - The company anticipates continued subscriber growth in retail Internet, while expecting a decline in Television and Satellite subscribers due to the rise of streaming services[149] Capital Expenditures - Capital expenditures for Q4 2024 were CAD 1,007 million, a 6% increase from CAD 946 million in Q4 2023[38] - Capital expenditures for the twelve months ended December 31, 2024, totaled $4,041 million, slightly higher than $3,934 million in 2023[134] - The company plans to maintain capital expenditures similar to 2024 levels, focusing on expanding its 5G wireless network and upgrading its hybrid fibre-coaxial network[149] Debt and Liquidity - Total short-term borrowings increased to $2,959 million as of December 31, 2024, from $1,750 million in 2023[80] - Long-term debt net repayments for the twelve months ended December 31, 2024, amounted to $1,103 million, compared to a net issuance of $5,040 million in 2023[84] - The weighted average cost of borrowings decreased to 4.61% as of December 31, 2024, from 4.85% a year earlier[97] - The debt leverage ratio improved to 4.5 as of December 31, 2024, down from 5.0 in 2023[100] - Total available liquidity as of December 31, 2024, was $4,833 million, compared to $5,939 million at the end of 2023[96] Operational Efficiency - The company reported a 7% decrease in operating costs this quarter, attributed to ongoing cost efficiency initiatives[52] - Adjusted EBITDA margin improved to 46.2% in Q4 2024, up from 43.7% in Q4 2023[38] Future Outlook - The 2025 outlook includes expectations for total service revenue, adjusted EBITDA, capital expenditures, and free cash flow, although specific figures were not disclosed[143] - The company is focused on integrating acquisitions and managing competitive intensity across all segments[145] - The company aims to return its debt leverage ratio to approximately 3.5 within 36 months of closing the Shaw Transaction through operational synergies, organic growth in adjusted EBITDA, asset sales, equity financing, and debt repayment[101] - The company warns that actual results may differ significantly from forward-looking statements due to various risks and uncertainties, including economic conditions and regulatory changes[146]

Core Viewpoint - Rogers Communication (RCI) is anticipated to report a year-over-year increase in earnings despite a decline in revenues for the quarter ending December 2024, with the actual results being crucial for its near-term stock price movement [1][2]. Earnings Expectations - The consensus estimate for quarterly earnings is $0.95 per share, reflecting a year-over-year increase of +9.2%, while revenues are projected to be $3.76 billion, a decrease of 4% from the previous year [3]. - The consensus EPS estimate has been revised down by 2.37% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Rogers Communication is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.80% [10][11]. - However, the company currently holds a Zacks Rank of 4, complicating the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, Rogers Communication was expected to post earnings of $1.07 per share but delivered $1.04, resulting in a surprise of -2.80% [12]. - Over the past four quarters, the company has exceeded consensus EPS estimates three times [13]. Market Reaction Factors - An earnings beat or miss alone may not dictate stock price movement, as other factors can influence investor sentiment [14]. - While betting on stocks expected to beat earnings can improve success odds, it is essential to consider other influencing factors before making investment decisions [15][16].

Core Viewpoint - RCI Hospitality Holdings, Inc. has successfully acquired Flight Club for a total of $11 million, which includes cash and seller financing, marking a strategic move to enhance its portfolio of high-end clubs [1][2]. Acquisition Details - The acquisition price consists of $3 million in cash, $5 million in seller financing at an 8% interest rate, and $3 million for the associated real estate [1]. - Flight Club is expected to contribute approximately $2 million in annualized adjusted EBITDA to RCI Hospitality's financials [2]. Property and Business Overview - The acquired property spans 10,000 square feet, is located in Inkster, MI, and has been recently renovated to provide upscale entertainment [3]. - The business is well-established and is anticipated to benefit from RCI Hospitality's marketing, purchasing, and operational expertise [3]. Strategic Focus - RCI Hospitality's "Back-to-Basics" approach aims to enhance business conditions and profitability in response to economic challenges, focusing on same-store sales and improving margins [4]. - The company has made significant progress with this plan, including share buybacks and divesting underperforming locations [5]. Future Plans - The company intends to concentrate on its core nightclub businesses and pursue additional acquisitions while improving the performance of existing Bombshells locations [6]. - RCI Hospitality expects to generate over $250 million in free cash flow over the next five years, with plans to allocate half for club acquisitions and debt repayment, and the other half for share buybacks and dividends [7]. Stock Performance - RCI Hospitality's shares have increased by 25.1% over the past three months, outperforming the Zacks Leisure and Recreation Services industry's growth of 7.4% [10]. - The company's consistent progress with its strategic initiatives is driving operational improvements and enhancing shareholder value [10].

Core Points - RCI Hospitality Holdings, Inc. has completed the acquisition of Flight Club, a premier gentlemen's club located in the Detroit market, for a total purchase price of $11.0 million [1][2] - The acquisition consists of $3.0 million in cash, $5.0 million in seller financing at an interest rate of 8.0%, and an additional $3.0 million in cash for associated real estate [2] - The company anticipates that the acquisition will contribute approximately $2.0 million in annualized adjusted EBITDA [2] Company Overview - RCI Hospitality Holdings, Inc. operates more than 60 locations and is recognized as a leading company in the adult nightclub and sports bar-restaurant industry in the United States [3] - The newly acquired Flight Club is a two-story, 10,000-square foot establishment that features upscale entertainment and a five-star kitchen, and is strategically located near major freeways and the Detroit Metro Airport [2][3] - The acquisition aligns with the company's 'Back to Basics' Capital Allocation Plan, which was recently launched [2]

Core Points - Rogers has entered a three-year agreement to be the official Presenting Partner of the Toronto International Film Festival (TIFF) and the People's Choice Award through 2027 [1][2] - The partnership aims to enhance the festival experience, including exclusive content for Canadians and VIP red carpet experiences for Rogers customers [1][3] - TIFF's 50th edition will take place from September 4 to 14, 2025, and will feature celebratory programming and events throughout the year [2][4] Company and Industry Insights - The expanded partnership builds on the success of TIFF '24, which attracted a record-breaking 700,000 attendees and featured numerous prominent filmmakers and stars [2] - TIFF is a not-for-profit cultural organization that generates an annual economic impact of CAD 200 million [6] - Rogers Communications Inc. is publicly traded on the Toronto Stock Exchange (TSX: RCI) and the New York Stock Exchange (NYSE: RCI) [5]

Core Insights - Favoritely.com is a new platform designed for the adult club industry, allowing fans to follow entertainers and arrange visits [2][3] - The service has received positive feedback during its initial beta phase in five clubs in Texas [1][2] - Entertainers on the platform retain 80% of their sales and can earn bonuses for recruiting new entertainers [3] Company Overview - RCI Hospitality Holdings, Inc. operates over 60 locations and is a leading company in adult nightclubs and sports bars-restaurants in the U.S. [3] - The platform is free for both users and entertainers, with entertainers setting their own subscription prices, typically around $4-5 per month [2][3] Future Plans - The company plans to expand Favoritely.com to more clubs, entertainers, and fans, aiming to enhance the service further [2]

Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1]. Group 1: Investment Philosophy - The investment approach is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1]. Group 2: Market Focus - The investment strategy encompasses markets in the US, Canada, and Europe, indicating a broad geographical focus for potential investment opportunities [1].