World News – CA – Rogers Communications shares expectations after third quarter results

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TORONTO – Rogers Communications Inc Third quarter profit and revenue fell from a year ago due to the COVID-19 pandemic, but the company beat analyst estimates after rebounded from the second quarter

The wireless, cable and media company said Thursday it earned $ 512 million or $ 1.001 per diluted share for the quarter ended September 30

This was down from earnings of $ 593 million or $ 114 per diluted share in the third quarter of 2019 but up from the second quarter, when the first wave of the pandemic gripped the country

On an adjusted basis, Rogers says it earned $ 1.08 per diluted share for the quarter, down from adjusted earnings of $ 1.19 per diluted share a year ago

Analysts on average expected adjusted earnings of 78 cents per share and revenue of $ 334 billion, according to financial data firm Refinitiv

The company’s Class B shares rose $ 523 or 10 percent to mid-morning $ 5778 on the Toronto Stock Exchange

« Our results show that we are managing the environment effectively and that our long-term strategy is sound, » Rogers chief executive Joe Natale told analysts on a conference call to discuss the results

He added that competition among Canada’s wireless service providers intensified in the third quarter, especially for secondary brands (which include the company’s Fido and Chatr services)

« We weren’t the aggressor, just to be absolutely clear, but there is a lot of competition in the flanker brand as the market has woken up, » Natale said

Other flanker brands in the market include Virgin Mobile and Lucky Mobile from BCE Bell and Telus Corp, Koodo and Public Mobile brands

Each of the three national operators uses their flagship and ancillary brands to compete with each other, along with regional operators such as Shaw’s Freedom Mobile and Quebecor Videotron, which also have two wireless brands each

Revenues from all Rogers operations totaled nearly $ 3.67 billion, up from the second quarter but down from $ 3.75 billion in the same quarter last year

Wireless service revenues fell 9% from the third quarter of 2019, mostly due to less excess revenue and $ 90 million less roaming revenue due to global travel restrictions during COVID-19

Rogers, which generates more than half of its total revenue from wireless services and related products such as smartphones, said it now has 22 million wireless customers (about a fifth of the total) on plans unlimited

Unlimited data plans do not charge extra money if a monthly amount is exceeded, but the speed of downloads may be slowed until the next billing cycle

Rogers CFO Anthony Staffieri said wireless overage charges were down about $ 50 million from the third quarter of last year, when unlimited plans were new and went down. added that excess income is expected to continue to decline gradually until mid-2021

The company’s cable and internet service revenues fell 1% from a year ago, with consistent service revenues and lower equipment revenues

Rogers Media revenue grew 1%, mainly due to higher revenue associated with the resumption of hockey in the NHL, partially offset by lower revenue for the Toronto Blue Jays, who did not could play in Canada due to COVID

Rogers’ cable and Internet network is primarily located in Ontario, as well as parts of Atlantic Canada The company is looking to expand its base in Ontario and make inroads in Quebec with a proposed purchase of the Canadian operations by Cogeco

However, an $ 11 billion Altice USA cash offer to Cogeco, backed by Rogers, was rejected on Sunday by Cogeco’s majority shareholder and again on Tuesday in a unanimous vote. of the directors of Cogeco

Altice USA has announced its offer, which would allow it to sell Cogeco’s Canadian operations to Rogers and keep the company US business to itself, remains on the table until November 18

Asked during Thursday’s conversation whether Rogers could sell its stake in Cogeco if it can’t buy its Canadian business, Natale provided a non-specific response

« If not accepted, we would do what you expect of us, » Natale said

« We will review our portions of capital allocation with our board of directors as part of our normal strategic planning and prioritization process, and we will return to the investment community on our thoughts and plans on capital allocation « 

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World News – CA – Rogers Communications Shares Expectations After Third Quarter Results


SOURCE: https://www.w24news.com

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