Earnings Review and Free Research Report: Rogers Communications’ Q3 Results Rose on Subscribers Growth
Research Desk Line-up: T-Mobile US Post Earnings Coverage
LONDON, UK / ACCESSWIRE / October 26, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Rogers Communications Inc. (NYSE: RCI), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=RCI, following the Company's announcement of its financial results on October 19, 2017, for the third quarter fiscal 2017 (Q3 FY17). The Toronto, Canada-based Company's total revenues rose 3% y-o-y and its adjusted net income surged 23% y-o-y in the reported quarter. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Wireless Communications industry. Pro-TD has currently selected T-Mobile US, Inc. (NASDAQ: TMUS) for due-diligence and potential coverage as the Company reported on October 23, 2017, its financial results for Q3 2017. Register for a free membership today, and be among the early birds that get access to our report on T-Mobile US when we publish it.
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Earnings Reviewed
During Q3 FY17, Rogers Communications reported total revenue of C$3.58 billion which came in above C$3.49 billion recorded at the end of Q3 FY16. Furthermore, total services revenue rose 4% to C$3.45 billion y-o-y in Q3 FY17 from C$3.33 billion recorded in Q3 FY16.
The communications and media Company's net income attributable to common stockholders came in at C$467 million, or C$0.91 per diluted common share, in Q3 FY17 compared to C$220 million, or C$0.43 per diluted common share, in the prior year's comparable quarter. Meanwhile, the Company's adjusted net income attributable to common stockholders increased to C$523 million, or C$1.01 per diluted share, in Q3 FY17 compared to C$427 million, or C$0.83 per diluted share, in last year's same quarter.
Operating Metrics
For Q3 FY17, the Company's operating cost increased marginally to C$2.13 billion from C$2.12 billion in Q3 FY16. Adjusted operating profit rose to C$1.46 billion in Q3 FY17 compared to C$1.39 billion in the year-ago corresponding period. Furthermore, adjusted operating profit margin improved to 40.9% of revenues in Q3 FY17 from 39.7% of revenues reported in the year-ago same quarter.
Rogers Communications' Business Segment Results
During the quarter ended September 30, 2017, the Wireless segment's revenues came in at C$2.14 billion, which was 5% higher than C$2.04 billion in the year-ago same period. Total postpaid customers were 8.84 million versus 8.46 million in Q3 FY16. The postpaid monthly churn was 1.16% during Q3 FY17 compared to 1.26% in last year's corresponding quarter. Prepaid subscriber base at the end of Q3 FY17 stood at 1.79 million, up from 1.68 million in prior year's same quarter. The prepaid monthly churn came in at 3.04% versus 3.49% in Q3 FY16. Additionally, blended average revenue per user (ARBU) rose to C$63.78 in Q3 FY17 from C$62.30 in Q3 FY16. Moreover, the segment's adjusted operating profit grew 9% to C$964 million y-o-y in Q3 FY17, primarily attributed to strong flow-through of service revenue growth.
The Cable segment generated revenue amounting to C$870 million in Q3 FY17, which was above last year's recorded revenue numbers of C$865 million. At the close of Q3 FY17, the segment's total service units were 5.07 million compared to 5.04 million in Q3 FY16. Furthermore, the segment's adjusted operating profit grew to C$440 million in Q3 FY17 from C$431 million in the year-ago comparable quarter.
In Q3 FY17, Business Solutions segment reported revenues of C$97 million compared to C$95 million in Q3 FY16. Meanwhile, the segment's adjusted operating profit rose 6% y-o-y to C$33 million in Q3 FY17.
Media segment's revenues fell 3% to C$516 million during the reported period from C$533 million in the previous year's same quarter. Moreover, the segment reported adjusted operating profit of C$65 million in Q3 FY17 compared to C$79 million in last year's corresponding quarter.
Cash Flow & Balance Sheet
In the three quarters ended on September 30, 2017, Rogers Communications generated C$1.38 billion of cash from operations compared to C$1.19 billion in the previous year's comparable period. In Q3 FY17, free cash flow came in at C$538 million compared to C$598 million in prior year's same quarter. Furthermore, the Company's long-term debt stood at C$12.66 billion as on September 30, 2017, which came in lower than C$15.33 billion recorded in December 31, 2016.
Dividend
In a separate press release on October 19, 2017, the Company's Board of Directors declared a quarterly dividend totaling C$0.48 per share on each of its outstanding Class B non-voting shares and Class A voting shares. The quarterly will be paid on January 02, 2018, to shareholders of record on December 11, 2017.
Guidance
In its outlook for full-year FY17, Rogers Communications expects revenues to grow in the range of 3% to 5% y-o-y. Adjusted operating profit for full year FY17 is forecasted to rise by 2% to 4% y-o-y. Additionally, free cash flow is also anticipated to rise in the range of 2% to 4% y-o-y during FY17.
Stock Performance
At the closing bell, on Wednesday, October 25, 2017, Rogers Communications' stock slipped 1.26%, ending the trading session at $52.50. A total volume of 351.51 thousand shares have exchanged hands, which was higher than the 3-month average volume of 316.65 thousand shares. The Company's stock price soared 1.65% in the last three months, 14.06% in the past six months, and 31.28% in the previous twelve months. Moreover, the stock skyrocketed 36.08% since the start of the year. The stock is trading at a PE ratio of 26.69 and has a dividend yield of 3.01%. The stock currently has a market cap of $26.97 billion.
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