Rogers Q3 2022: Profit Down 24%, Network Outage Credits Cost $150 Million
Rogers today announced its unaudited financial and operating results for the third quarter ended September 30, 2022.
Overall, Rogers reported a total of $3.74 billion in revenue for Q3 2022, up 2% year-over-year from Q3 2021. Service revenue was up 3% to $3.23 billion.
Net income for the period was just $371 million, down a whopping 24% year-over-year. The company’s Q3 bottom line took a massive hit from $150 million in refunds made to customers as compensation for the nationwide Rogers network outage in July.
Rogers added a total of 221,000 new mobile phone subscribers between July and September, 30,000 more than the year-ago quarter. Of these additions, 164,000 were postpaid subscribers.
In comparison, fellow telecom giant Bell Canada on reported net new mobile phone subscriptions of 224,343 for the same period, while Telus posted 150,000.
“This quarter, we continued to demonstrate our strong and consistent execution in our Wireless business and the robust demand from consumers and advertisers for our sports and Media assets,” said Tony Staffieri, President and CEO of Rogers.
Other key figures from Rogers’s unaudited results include:
- Adjusted EBITDA was down 1% to $1.58 billion.
- Diluted earnings per share for Q3 2022 were $0.71, down 24% from $0.94 during Q3 2021.
- Adjusted diluted earnings per share declined 18% year-over-year to $0.84.
- Media revenue grew 12% in the quarter.
- Revenue from the company’s cable business was up 2%.
“Building on this position of strength, we will continue to invest in our networks and our customers’ experience to deliver the resilience and service our customers expect. Looking ahead, we remain committed to the Shaw transaction and the significant connectivity and affordability benefits it will deliver to Canadians,” Staffieri added.
Rogers is currently defending its proposed $26 billion acquisition of Shaw Communications before the federal Competition Tribunal. The deal still requires approval from the Competition Bureau, but the watchdog is seeking to block it entirely.
Rogers and Shaw have extended their mutual deadline for the merger to December 31, 2022, with room for further extension. The Tribunal hearings against the Competition Bureau are expected to last four weeks, with oral arguments scheduled for mid-December.