TORONTO - Rogers (NYSE:ROG) Communications Inc. (TSX: RCI.A and RCI.B; NYSE: RCI) announced robust financial results for the fourth quarter and full year ended December 31, 2023, driven largely by the successful integration of Shaw Communications (NYSE:SJR) Inc. and sustained performance across wireless and cable operations.
The company reported a 27% increase in service revenue, reaching $16.8B for the year. Adjusted EBITDA rose by 34% to $8.6B, and free cash flow saw a 36% uptick, amounting to $2.4B. Notably, Rogers added 674,000 postpaid mobile phone subscribers in 2023, marking a 24% increase from the previous year and ending with 11.6 million wireless customers.
Fourth-quarter results reflected a 30% rise in total service revenue and a 39% increase in adjusted EBITDA. Wireless service revenue grew by 9%, and cable service revenue surged by 94%, thanks to the inclusion of Shaw operations. The company also doubled its Q4 retail Internet net additions compared to the previous year.
Rogers' cable division boasted industry-leading margins of 56%, up from 51% the previous year, with synergies from the Shaw acquisition now totaling $375M. The company exited the fourth quarter at a $750M run rate, six months ahead of schedule.
The company's debt leverage ratio was substantially reduced to 4.7 times at year-end, reflecting synergy cost reductions, earnings growth, and proceeds from asset sales.
For 2024, Rogers has set robust growth targets with total service revenue expected to increase by 8% to 10%, and adjusted EBITDA to grow by 12% to 15%. Capital expenditures are projected between $3.8B and $4.0B, with free cash flow anticipated to be between $2.9B and $3.1B.
Tony Staffieri, President and CEO, expressed confidence in the company's future, citing eight consecutive quarters of growth and the delivery of innovative technology firsts for Canadians.
This financial summary is based on a press release statement from Rogers Communications Inc (TSX:RCIa).
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