Rogers Communications Inc. Q3 FY2024 earnings call

• Rogers delivered strong Q3 results with industry-leading market share in wireless and cable, strong profitability in media. • Announced a $7 billion structured equity financing to pay down debt, expecting debt leverage ratio to reach 3.7x by year-end. • Added a record 227,000 mobile phone and Internet net additions in Q3. • Network leadership confirmed by Ooma and Opensignal. • Trialed DOCSIS 4 modem technology and Comcast XER modem. • Strategic agreement to buy Bell's 37.5% ownership stake in Maple Leaf Sports & Entertainment.

Wireless: Wireless service revenue grew 2% year-over-year, adjusted EBITDA up 5%, margins 66%, postpaid mobile phone net additions 101,000, prepaid net adds 93,000. Cable: Cable revenue declined 1% year-over-year sequentially, but adjusted EBITDA up 5%, margins 58%, retail Internet net additions 33,000 in Q3. Sports & Media: Revenue up 11%, adjusted EBITDA up 25%.

• Reaffirmed 2024 guidance range targets. • Expect debt leverage ratio to reach 3.7x by year-end, well ahead of previous 4.2x target. • Plan to continue delevering and investing in growth across core businesses.

• Competitive market dynamics affecting ARPU and net additions. • Regulatory environment impacts, such as roaming rate changes. • Uncertainties around non-core asset sales and their effect on leverage.

Q: Securitization aspect and cash outflows.

A: It's an equity transaction, not securitization, cash outflows manageable.

Q: CRTC regulatory environment and roaming.

A: Roaming revenue declined, adjusting value proposition, will participate in CRTC consultations.

Q: CapEx and non-core asset sales impact on leverage.

A: CapEx in range of $4 billion, non-core asset sales impact minimal on leverage, work in progress.