Canadian telecom giant Rogers Communications reports a loss in Q3 due to acquisition costs, but exceeds revenue expectations through successful integration of Shaw. Mobile and internet additions also contribute to growth.
Troy D. Hanson
November 09, 2023
Revenue Exceeds Expectations with Shaw Integration
Rogers Communications, the Canadian telecom giant, announced a loss of $71.8 million in the third quarter. The company reported a loss of C$0.20 per share, compared to a profit of C$0.71 per share in the same period last year.
The loss was attributed to higher depreciation and amortization, as well as increased finance and restructuring costs related to the acquisition of Shaw Communications. Additionally, Rogers booked a loss of C$422 million on the obligation to purchase the non-controlling interest in one of its joint-venture investments.
However, on an adjusted basis, excluding one-off costs and items, earnings increased to C$1.27 per share. Analysts were expecting a more modest rise to C$1.11 per share, according to FactSet.
Total revenue for the quarter reached C$5.09 billion, surpassing analyst expectations of C$5.07 billion. This increase in revenue can be attributed to the successful integration of Shaw into Rogers' business.
Mobile phone and internet additions in the period amounted to 279,000, with 261,000 being new mobile phone connections. Internet net loading also saw growth, with 18,000 new connections, up 12,000 from the previous year, thanks to both eastern and western Canada.
Rogers' C$20.5 billion takeover of Shaw received final approval in March, solidifying the integration process. CEO Tony Staffieri expressed satisfaction with the progress made so far, stating that the company is ahead of synergy targets and deleveraging plans.