Rogers Posts Net Loss in Q3, Wireless Numbers Grow
Rogers has disclosed a net loss in its financial results for the three months ending September 30, despite witnessing growth in revenue and service revenue. The Q3 net loss stands in stark contrast to the previous year’s net income, reflecting a downturn in profitability for the telco.
The company’s total revenue increased by 36% to $5.09 billion, and total service revenue rose by 40% to $4.52 billion. Adjusted EBITDA also saw a significant increase of 52%, reaching $2.41 billion. However, these positive trends in revenue and earnings before interest, taxes, depreciation, and amortization did not translate to net income, which shifted from a gain last year to a net loss, now reported at $99 million.
The integration of Shaw is progressing ahead of schedule, with Cable margins at an industry-leading 54.2%, up significantly from the previous year. The company has realized $188 million in synergies to date and anticipates a $600 million run-rate by year-end, six months ahead of the initial plan.
Rogers said its net loss was due to increased expenses this quarter, including higher depreciation and amortization, elevated finance costs, and significant restructuring, acquisition, and other costs, mainly related to the acquisition and integration of Shaw. These were partially mitigated by a $422 million loss incurred from an obligation to acquire the remaining interest in one of its joint ventures’ investments at fair value.
“We continued to deliver industry-leading results in the third quarter, reflecting seven straight quarters of growth and momentum,” stated Tony Staffieri, President and CEO of Rogers. “Six months into our Shaw integration, we’re tracking ahead of our synergy targets and deleveraging plans. The team is executing with discipline, and I am very pleased with our progress.”
The diluted loss per share was recorded at $0.97, a substantial decline from the previous year’s diluted earnings of $2.28 per share. Even with an adjusted diluted earnings per share increase of 27% to $3.37, the net loss underscores challenges faced during the period.
Rogers also reported wireless net additions, with 279,000 mobile phone and internet net adds, marking an increase from the previous year. The company’s third-quarter mobile phone net adds totaled 261,000, the best quarterly result on record, with postpaid mobile phone net adds at 225,000, the strongest loading on record it says. Internet net additions were 18,000, up from the previous year, with growth in both the East and West.