Rogers announced a $526 million profit for the third quarter of 2024, along with strong growth in wireless services. Total revenue was $5.1 billion for the quarter, a 1% increase compared to the same period one year ago.
The company gained 101,000 new postpaid wireless customers and 93,000 prepaid users, contributing to a 2% increase in wireless revenue. Compared to the same quarter a year ago, net postpaid wireless additions are down 124%. Rogers has 10.69 million total postpaid wireless subscribers. Monthly mobile phone average revenue per user stands at $58.57, down $0.26 compared to a year ago.
As for Rogers prepaid subscribers, net additions increase 57% to 93,000, with total prepaid wireless subscribers at 1.1 million. In December, Rogers will shutdown its prepaid wireless service, along with Fido.
Rogers added a total of 227,000 combined wireless and internet customers. The postpaid wireless gain and revenue was below analyst estimates and as of writing, shares of Rogers are down 3.5% to $52.35.
The company noted that as of January 1, 2024, it had stopped selling new Fido prepaid plans, and also had removed 110,000 Cityfone postpaid subscribers as they also stopped selling new plans.
“We continued to build on our momentum and deliver industry-leading results and attract more Canadians than any other carrier,” said Tony Staffieri, President and CEO, in a statement on Thursday. “We delivered strong market share, record margins in Cable and Wireless, and we are on track to deliver our full-year targets. I’m proud of our team for delivering an eleventh straight quarter of growth and sector-leading performance while strengthening our balance sheet.”
The company revealed a new $7 billion structured equity investment from an unnamed global financial investor to reduce its debt. This investment is expected to bring Rogers’ year-end leverage ratio to 3.7x, with the deal, set to close in Q4.
Last month, Rogers announced it would acquire Bell’s indirect 37.5% ownership stake in Maple Leaf Sports & Entertainment Inc. (MLSE) for $4.7 billion, payable in cash. The Rogers empire continues to consolidate vertically, yet again.
Despite a 1% decline in cable revenue, Rogers achieved a 5% increase in cable profits through cost management.
Rogers recently has also been increasing prices of its TV box rentals and wireless plans. The company has $915 million in free cash flow.
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