Rogers Q1 2022: Earnings Grow Ahead of Shaw Acquisition Expected to Close Soon
Rogers Communications Inc. today announced its unaudited financial results for the first quarter ended March 31, 2022.
Overall, Rogers reported a total of $3.62 billion CAD in earnings for Q1 2022, up 4% year-over-year from Q1 2021. Service revenue was up 6% to $3.2 billion. The results are squarely in line with, if not exceeding, analyst estimates.
Rogers attributed the stellar financial results to “better execution and the continued improvement in Canada’s economy.” Other key figures from the telco’s unaudited results include:
- Net income was $392 million, up 9% year-over-year.
- Adjusted EBITDA was up 11% to $1.54 billion.
- Diluted earnings per share for Q1 2022 were $0.77, up 10% from $0.70 during Q1 2021.
- Adjusted diluted earnings per share saw 18% growth year-over-year to $0.91.
- Media revenue grew 10% in the quarter.
- Revenue from the company’s cable business was up 2%.
- Rogers added 66,000 new postpaid mobile phone additions.
“Rogers delivered strong first quarter results across all our businesses, driven by better execution and the continued improvement in Canada’s economy,” said Tony Staffieri, the telecom giant’s President and CEO.
Staffieri only recently took over as CEO in January from Joe Natale, who was ousted from the company following a drawn-out and public power struggle against Edward Rogers, Chairman and son of company founder Ted Rogers.
In light of its Q1 2022 results, Rogers is setting its sights higher for full-year 2022 earnings and has revised guidance for the year accordingly.
“We are very confident about the opportunities ahead, driven by the exceptional quality of our assets and the dedicated efforts of the Rogers team. As a result, we are increasing Rogers’ 2022 service revenue, adjusted EBITDA, and free cash flow guidance to reflect our improved outlook, ahead of further growth associated with the Shaw transaction.”
Rogers has upped its guidance for total year-over-year service revenue growth in 2022 from 4-6% to 6-8%. New guidance on adjusted EBITDA growth is 8-10% instead of the previous 6-8%, while guidance for annual free cash flow has been increased from $1.8-2.0 billion to $1.9-2.1 billion.
Staffieri also touched on the progress of the telecom giant’s planned $26 billion acquisition of Shaw Communications Inc., Canada’s fourth-largest telecommunications provider. The Rogers CEO reiterated that the deal is still expected to close sometime in Q2 despite several setbacks, including the pair’s ongoing efforts to divest Shaw’s wireless unit, Freedom Mobile.
“In March, the CRTC approved the transfer of the broadcast distribution undertaking licences held by Shaw to Rogers. This approval is an important milestone and brings us one step closer to completing our transformational transaction, which we expect to close in Q2,” Staffieri said.
“Teams from both Rogers and Shaw continue to work constructively with the Competition Bureau and ISED Canada to ensure they have the information they need to assess the significant benefits the combined company will bring to Canadians and the Canadian economy,” added the CEO.