Rogers Q1 Profit Surged 30% Ahead of Shaw Merger
- Rogers reported $3.83 billion in revenue for the first quarter of the year.
- Net income was up 30% year-over-year to $511 million.
- Q1 saw Rogers close its long-embattled Shaw merger, with the company revising its 2023 guidance accordingly.
Rogers today announced its unaudited financial and operating results for the first quarter ended March 31, 2023.
Overall, Rogers reported a total of $3.83 billion in revenue for Q1 2023, up 6% year-over-year from Q1 2023. Quarterly service revenue was up 4% to $3.31 billion. Net income for the period was $511 million, up a whopping 30% year-over-year.
Quarter over quarter, Rogers’ total revenue dropped 7.9% from $4.16 billion, while net income rose 0.6% from $508 million.
Q1 proved to be a “historic” quarter for Rogers, with the company finally receiving government approval for its long-embattled acquisition of Canada’s fourth-largest wireless operator, Shaw Communications, at the end of March.
“We continued to deliver strong momentum in the first quarter with strong growth in Wireless and Media and strengthening performance in Cable,” said Rogers President and CEO Tony Staffieri. “We successfully completed the Shaw merger and we look forward to delivering on our commitments and to delivering more value to customers and shareholders.”
Rogers added a total of 95,000 new postpaid mobile phone subscribers between January and March, up 29% compared to the year-ago quarter. As for prepaid subscribers, the telecom giant ended the quarter with a net loss of 8,000 connections.
Check out other key figures from Rogers’ unaudited Q1 2023 results below:
- Adjusted EBITDA for Q1 2023 was up 7% to $1.65 billion.
- Diluted earnings per share for the first quarter were $1.00, up an impressive 30% from $0.770 during the same period in 2022.
- Adjusted diluted earnings per share for the quarter rose 20% year-over-year to $1.09.
- Media revenue grew 5% in the quarter.
With the Shaw acquisition now complete, Rogers has also updated its financial guidance for 2023. For the full year, the company is now forecasting an increase of 26-30% (instead of 4-7%) in total service revenue and 31-35% (instead of 5-8%) in adjusted EBITDA.
In addition, Rogers also revised its guidance for capital expenditures this year from $3.1-3.3 billion to $3.7-3.9 billion.