A Rogers Communications sign is pictured in Ottawa on Tuesday, July 12, 2022.Sean Kilpatrick/The Canadian Press
Rogers Communications Inc. RCI-B-T reported strong gains in its wireless customer base during the busy back-to-school shopping season, as the telecom giant continued to integrate its recent acquisition of Shaw Communications Inc.
The Toronto-based telecom added 261,000 net new wireless customers during the third quarter, including 225,000 net new postpaid subscribers. Postpaid customers are billed at the end of the month for the services they used, versus prepaid customers, who pay upfront for wireless services.
“This phone-only loading represents 94,000 more than BCE Inc., and over 100,000 more than Telus Corp.,” Rogers CEO Tony Staffieri told analysts Thursday during a conference call to discuss his company’s quarterly results.
“Simply put, we continue to outexecute our peers and have done so consistently for the last two years,” Mr. Staffieri added.
The company’s share price rose more than 5 per cent in afternoon trading on the Toronto Stock Exchange to $58.28.
Scotiabank analyst Maher Yaghi said the wireless results benefited from immigration growth.
“We suspect the company chose to be opportunistic and push hard all through the quarter to gain share in a hot wireless market while some of its peers chose to dial back towards the end of the quarter to protect the bottom line,” Mr. Yaghi wrote in a note to clients.
“We believe Rogers chose the right time to go on the attack, as no one can be sure how long the market can remain this active,” he added.
The wireless giant reported a net loss of $99-million for the three months ended Sept. 30, even as its revenue grew 36 per cent year over year to $5.09-billion.
The telecom attributed the loss, which compared to a net profit of $371-million a year ago, to higher depreciation and amortization, higher finance costs and higher restructuring, acquisition and other costs, primarily related to its recent purchase and continuing integration of Shaw. Rogers also took a $422-million loss on an obligation to purchase at fair value the non-controlling interest in one of its joint ventures’ investments.
After adjusting for various items such as depreciation and amortization, finance costs and income tax expenses, the company had $679-million in profit for the quarter, up 56 per cent from $436-million a year ago.
Adjusted earnings amounted to $1.27 per share, up from 84 cents per share during the same quarter last year.
Analysts had been expecting adjusted earnings of $1.13 per share and revenue of $5.07-billion, according to the consensus estimate from S&P Capital IQ.
Mr. Staffieri said the telecom has made “substantive progress” on integrating its $20-billion acquisition of Calgary-based Shaw.
“We are now tracking six months ahead of our synergy targets and deleveraging plans,” Mr. Staffieri said.
No custom component found for subtype: oovvuu-video