Canada’s largest integrated telecom operator Rogers Communications $RCI reported mixed earnings Thursday for Q2 2017. Bottom line beat consensus estimates but revenue missed. The Internet of Things Boosted Result.
Canada’s largest integrated telecom operator Rogers Communications (RCI) reported mixed earnings Thursday for the second quarter of 2017. The Bottom line beat consensus estimates but revenue missed. Rogers has been a favorite among Technology and Telco investors as it was the first wireless operator in Canada to offer Internet of Things (IoT) as a service to business enterprises.
Earnings: For Q217 net income was $394.53 million compared with $292.74 million in the year-ago quarter. Adjusted earnings per share of 74 cents were above consensus estimate of 71 cents. Revenue was $2,670 million below the consensus estimate of $2,762.8 million. Quarterly adjusted operating profit margin was 39.3% versus 39.0% from the year-ago quarter.
Reaction: Rogers Communications Inc. Class B NYSE: RCI Lunchtime 51.63USD +0.82 (+1.61%)
The company operates in the following segments: Wireless, Cable, Business Solutions, and Media.
This segment includes wireless telecommunications operations for Canadian consumers and businesses
- Quarterly total revenue $1,521.66 million, up 6% year over year.
- Service revenues totaled $1,430.28 million, up 8% from the year-ago quarter.
- Equipment sales were $91.39 million, down 14% year over year.
- Quarterly adjusted operating profit for the segment was $686.53 million, up 9% year over year.
- Adjusted operating profit margin was 48.0% compared with 47.3% in the year-earlier quarter.
- Quarterly blended ARPU (average revenue per user) was $62.13, compared with $60.18 in the year-ago quarter.
- As of Jun 30, the prepaid subscriber base totaled 1.689 million, with a gain of 77,000 subscribers from the year-ago quarter.
- Monthly churn rate was 3.96% compared with 3.57% in the prior-year quarter.
- At June 30, the postpaid wireless subscriber base totaled 8.710 million. In the second quarter, the company added 93,000 postpaid wireless subscribers. Quarterly postpaid ARPA (average revenue per account) was around $124.31 compared with $116.06 in the year-ago quarter.
- The monthly churn rate was 1.05% versus 1.14% in the prior-year quarter.
Media End-to-End Incident Management, Farm & Food Monitoring and Level Monitoring are the three IoT services that the wireless carrier currently offers. and Liquidity
- Quarterly total revenue came in at $473.29 million, up 4% year over year.
- Quarterly operating expenses rose 9% year over year to $426.48 million.
- Adjusted operating profit margin came in at 9.9% versus 14.6% with the year-ago quarter.
This segment includes network connectivity through its fibre network and data centre assets to support a range of voice, data, networking, hosting and cloud-based services for small, medium and large Canadian businesses, governments, and on a wholesale basis to other telecommunications providers.
- Quarterly total revenue came in at $71.33 million, down 1% year over year. Of the total, next-generation revenues were $58.69 million, up 1%. Legacy revenues were $11.14 million, down 12%.
- Service revenues were $69.84 million, down 1%.
- Equipment revenues were $1.49 million, flat year over year.
- Quarterly adjusted operating profit was $23.78 million, up 3% year over year.
- Adjusted operating margin was 33.3% compared with 32.0% in the year-ago quarter.
In Q217 Rogers Communications generated $611.49 million of cash from operations compared with $832.90 million at the end of Jun 2016. Free cash flow was $465.12 million compared with $367.79 million in the year-ago quarter.
Total outstanding long-term debt was approximately $11,454.83 million compared with $11,807.76 million at the end of Dec 2016.
Live From The Pit