Sunday, October 25, 2015

Rogers Q3 Earnings Highlights

       Public companies trading on the various stock exchanges across the world have to report earnings on a quarterly basis.  This allows investors to know how the company is doing financially and the company's plan for the future. As a shareholder of a company, an investor should take an active role, by at least listening to these conference calls.  They usually last about an hour each, and the results come directly from the CEO and the CFO of the company.  

        Rogers Communications, which trades in New York and Toronto, released its Q3 earnings on  Oct 22, 2015. So below, I posted some highlights from the conference call.

2015 Q3 Highlights  For Rogers Communications.

  • Revenue growth up over 4% YOY
  • Adjusted operating profit increase of 3% YOY
  • Free Cash Flow up almost $300 million
  • Wireless network revenue grew by 3%
  • Added 77000 pre-paid wireless subscribers
  • In September, expanded Roam Like Home to another 40 countries
                      - Now available in over 75 countries
                      - 2.1 million customers now enrolled in Roam Like Home

  • Launched WIFI calling which lets customers make calls and texts over WIFI.
                -- This started with the iPhone

    • LTE network now 3 time faster than the beginning of 2015
    • Cable revenue up 1%
    • 3.4 million homes in Ontario can access speeds up to 5 times faster than competitors
    • top line revenue growth grew by 4% YOY
    • Adjusted operating profit this quarter of $1.35 billion, which is up 3%.
    • Smart phone activations 
                         - activated 737000 phones in quarter with 1/3 being new subscribers
                         - up 20% YOY
                         - 28% increase in higher value iPhone customer activations

    • EPS $0.90 per share -  analysts’ estimate was $0.747 per share.

          Rogers Communications provide telecommunications services to residential and commercial customers. These services included Internet, cable, phone, and wireless. They are one of the major players in Canada in this space. In cable, they own Sportsnet which shows a lot of sporting events including the Toronto Blue Jays. Why mention the Toronto Blue Jays? Rogers own the Toronto Blue Jays, which is a major league baseball team. I own 200 shares of Rogers so I own a part of the Blue Jays. As the Blue Jays competed for the World Series this year, this will mean more revenue for Rogers as more games were played. 

    Disclosure: Long RCI.B


    I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

    Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.


    1. Thanks for the writeup IP. How about that? Our Rogers did a bit of a rally. Nice. It's hitting a new high. Let's see where it goes from here.
      I have about a 25 percent gain so it's nice.
      Thanks IP and keep it up buddy. Cheers.

      1. Dividend Hustler,

        It has been a nice rally for sure. My gain is roughly 25 % was well.