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Rogers Communications(RCI) - 2024 Q4 - Annual Report
RCIRogers Communications(RCI)2025-01-30 13:30
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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 794million,a26794 million, a 26% increase from 630 million in Q4 2023[74] - Adjusted EBITDA for the twelve months ended December 31, 2024, reached 9,617million,up129,617 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 616millioninQ42024,supportedbyhighersportsandentertainment−relatedrevenue[54]−Totalservicerevenuefortheyearincreased,withwirelessmobilephoneaveragerevenueperuser(ARPU)showingpositivetrends[129]SubscriberGrowth−Totalpostpaidmobilephonesubscribersreached10,768thousand,anincreaseof270thousandfromthepreviousyear[40]−Totalcustomerrelationshipsincreasedby47,reaching4,683inQ42024comparedtoQ42023[49]−ThetotalnumberofretailInternetsubscribersincreasedby111to4,273inQ42024[49]−Subscribercountsinbothwirelessandcablesegmentsshowedgrowth,contributingtooverallrevenueincreases[129]−ThecompanyanticipatescontinuedsubscribergrowthinretailInternet,whileexpectingadeclineinTelevisionandSatellitesubscribersduetotheriseofstreamingservices[149]CapitalExpenditures−CapitalexpendituresforQ42024wereCAD1,007million,a6616 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 3,934millionin2023[134]−Thecompanyplanstomaintaincapitalexpendituressimilarto2024levels,focusingonexpandingits5Gwirelessnetworkandupgradingitshybridfibre−coaxialnetwork[149]DebtandLiquidity−Totalshort−termborrowingsincreasedto3,934 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 1,750millionin2023[80]−Long−termdebtnetrepaymentsforthetwelvemonthsendedDecember31,2024,amountedto1,750 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 5,040millionin2023[84]−Theweightedaveragecostofborrowingsdecreasedto4.615,040 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]