CEO Natale “bullish” on 2018
TORONTO – Rogers returned to profit in the fourth quarter of 2017, capping off what president and CEO Joe Natale described as a year of “excellent results”.
On Thursday, Rogers posted profit of $419 million for the quarter ended December 31, 2017, a return to the black from the $9 million loss recorded in the same period a year ago when it took a writedown on its IPTV product before opting to proceed with Comcast’s X1 platform. Adjusted net income increased 19% to $455 million this quarter primarily due to higher adjusted operating profit and lower depreciation and amortization.
Revenue increased 3% to $3.63 billion, largely driven by Wireless service revenue growth of 7% as a result of subscriber growth and a greater number of subscribers on higher-rate plans from its various brands, including Rogers Share Everything plans. Cable revenue increased 2% this quarter due to continued strong Internet revenue growth of 9%. Media revenue decreased 4% this quarter primarily as a result of lower revenue from the Toronto Blue Jays, primarily due to the postseason success in 2016, and lower publishing-related revenue due to the company’s shift to digital media announced last year, partially offset by higher Sportsnet revenue and increased sales at Today's Shopping Choice (TSC).
Free cash flow dropped 38% to $244 million as a result of greater capital expenditures this quarter compared to last year.
"We delivered excellent results in 2017, with the best financial and subscriber performance in many years," said Natale, in a statement. "We also reported strong financial results in the fourth quarter, including growth in revenue, adjusted operating profit and margins. Our 2018 guidance reflects accelerated growth in profit and free cash flow along with well-timed, strategic investments in our networks. We enter 2018 bullish about the growth in our core business and with a clear plan focused on enhancing our customers' experience and capturing cost efficiencies to drive sustainable growth."
The company ended the quarter with 8.70 million wireless postpaid customers and 1.78 million prepaid customers, up 72,000 and down 8,000, respectively, from the same period last year. On the TV side, Rogers lost 13,000 cable customers to fall to 1.74 million; added 17,000 Internet customers to sit at 2.23 million broadband subs; and added 9,000 home phone customers and now has 1.12 million of those households.
Rogers’ fourth quarter report is available here.
