Rogers to Refund Customers $150 Million for Outage; Q2 Profits Surge 35%
Rogers today announced its unaudited financial and operating results for the second quarter ended June 30, 2022.
Overall, Rogers reported a total of $3.86 billion in revenue for Q2 2022, up 8% year-over-year from Q2 2021. Service revenue was up 11% to $3.44 billion.
Company CEO Tony Staffieri said the telco’s Q2 performance was made possible by “the incredible hard work by our Wireless, Cable, and Media teams as we continue to recover from the impacts of the pandemic.”
Rogers suffered a network-wide outage earlier this month that left millions of Canadians without phone and internet service. The company originally offered customers two days’ worth of credits for prorated service as compensation but later upped that to five days.
Rogers estimated that outage-related refunds to customers will cost the company $150 million, as outlined in its Q2 earnings release. This figure will impact the company’s Q3 results.
Other key figures from Rogers’s unaudited results include:
- Net income of $409 million, up a whopping 35% year-over-year.
- Adjusted EBITDA was up 16% to $1.59 billion.
- Diluted earnings per share for Q2 2022 were $0.76, up 27% from $0.60 during Q2 2021.
- Adjusted diluted earnings per share saw 13% growth year-over-year to $0.86.
- Media revenue grew 21% in the quarter.
- Revenue from the company’s cable business was up 3%.
- Rogers added 122,000 new postpaid mobile phone subscriptions.
“Our Q2 results also lay a solid foundation for both Rogers and Shaw as we look forward to closing the transaction following regulatory approval. Rogers, Shaw, and Quebecor have put together a remedy that will create a strong and sustainable fourth carrier with proven operations that reach more than 87% of the Canadian population,” Staffieri added.
“Rogers, Shaw, and Quebecor are committed to seeing the transaction through to completion and delivering its long-term benefits to Canadian consumers, businesses, and the economy.”
Both companies extended their merger deadline to December 31, 2022.
The telecom giant originally expected to merge with Shaw in the second quarter. However, the deal now hangs in the balance as Canada’s Competition Bureau has petitioned the competition tribunal to block it. A tribunal decision on the matter is expected sometime later this year.