Rogers hit by costs related to Shaw acquisition, reports Q4 profit down from year ago

Rogers expands 5G service for TTC customers Rogers Communications Inc. has rolled out its high-speed 5G wireless service to its own customers on the TTC

TORONTO — Rogers Communications Inc. reported its fourth-quarter net income fell 35 per cent compared with a year ago as it was hit by costs related to its acquisition of Shaw Communications Inc. and integrating the business.

The company reported net income of $328 million or 62 cents per diluted share for the quarter ended Dec. 31 compared with $508 million or $1 per diluted share a year earlier.

On an adjusted basis, Rogers says it earned $1.19 per diluted share in last three months of 2023, up from $1.09 per diluted share in the last three months of 2022.

Revenue for the quarter totalled nearly $5.34 billion, up from nearly $4.17 billion a year earlier.

The increase came as wireless service revenue rose nine per cent, helped by growth in the company's mobile phone subscriber base and revenue from Shaw Mobile subscribers. Wireless equipment revenue gained 17 per cent.

Rogers says cable service revenue increased by 94 per cent, primarily as a result of the Shaw deal, while media revenue fell eight per cent as a result of lower sports-related revenue, partially offset by higher advertising and subscriber revenue.

"We led the industry in growth, exceeded our Shaw targets, and delivered a number of innovative firsts to Canadians. We've delivered eight straight quarters of growth and I remain very confident in our future," said Rogers CEO Tony Staffieri in a press release.

Rogers says its net increase in postpaid mobile phone subscribers totalled 184,000 for the three-month period, which it credited to "sales execution in a growing Canadian market." The figure was down 4.7 per cent from the 193,000 additions recorded the same period last year.

Rogers' monthly churn for net postpaid mobile phone subscribers was 1.67 per cent, up from 1.24 per cent during its previous fourth quarter.

Rogers' mobile phone average monthly revenue per user was $57.96, marking a 1.2 per cent decrease from the fourth quarter of the prior year.

"The decrease was primarily a result of the impact of the Shaw Mobile subscribers acquired through the Shaw transaction in April 2023," the company said.