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Rogers Communications Inc. (TSX:RCI.A and RCI.B; NYSE:RCI) announced its unaudited financial and operating results for the second quarter ended June 30, 2024. The company reported significant growth in its subscriber base, continuing its trend of being a preferred choice among Canadians for wireless and internet services.
In Q2 2024, Rogers added a total of 188,000 net subscribers across its mobile phone and internet services, bringing the year-to-date total to 275,000. This includes 112,000 postpaid mobile phone net additions, 50,000 prepaid net additions, and 26,000 retail internet net additions. Over the past 10 quarters, Rogers has achieved industry-leading growth with 1.7 million net additions in mobile phone and internet services.
Strong Financial Performance Across Segments
Rogers demonstrated strong financial performance in Q2 2024, particularly in its wireless segment. Wireless service revenue increased by 4%, while adjusted EBITDA grew by 6%, resulting in a robust margin of 65%. The blended Average Revenue Per User (ARPU) also saw a 1% increase, indicating the company's ability to upsell and retain high-value customers.
In the cable segment, while revenue declined by 2%, adjusted EBITDA rose by 9%, leading to a margin of 57%. This performance underscores Rogers' focus on operational efficiency and cost management, which has helped mitigate the impact of competitive pressures in the cable market.
Strategic Investments and Financial Stability
Rogers continued to invest heavily in its network and infrastructure, with capital expenditures totaling $1 billion in Canada during Q2. The company also made a $475 million payment for spectrum licenses to the federal government, including $380 million in Q2 alone. Despite these significant investments, Rogers maintained a steady leverage ratio of 4.7 and is targeting a leverage ratio of 4.2 by the end of the year.
Reaffirmed 2024 Outlook and Shareholder Returns
Rogers reaffirmed its optimistic outlook for 2024, projecting total service revenue growth of 8% to 10%, adjusted EBITDA growth of 12% to 15%, and capital expenditures between $3.8 billion and $4.0 billion. The company also anticipates free cash flow of $2.9 billion to $3.1 billion.
In addition to its operational achievements, Rogers returned $266 million in dividends to shareholders in Q2 2024. The company also declared a $0.50 per share dividend on July 23, 2024, demonstrating its commitment to delivering value to shareholders.
