(Bloomberg) — Rogers Communications Inc. beat analysts’ fourth-quarter estimates as wireless service revenue gained and subscribers bought more expensive devices.
Most Read from Bloomberg
But the telecom provided subdued guidance for the year ahead, saying adjusted Ebitda would grow between 0% and 3% in 2025 after it rose 12% in 2024. Rogers shares fell 0.3% to C$41.32 at 10:26 a.m. Toronto time.
Canada’s largest wireless company earned C$1.46 per share on an adjusted basis in the fourth quarter, more than the C$1.36 expected by analysts in a Bloomberg survey.
The beat comes despite 2024’s service revenue growth of 7%, down from the 8% to 10% that management had projected earlier in the year. Rogers cited weakness in its media division during the fourth quarter as a reason for the reduction, and forecast 0% to 3% growth for 2025.
Revenue for the three months ended Dec. 31 was nearly C$5.5 billion ($3.8 billion), slightly more than projected.
The wireless unit, Rogers’ largest business, added 95,000 prepaid and postpaid mobile subscribers during the quarter. Wireless revenue gained by 2%.
“In 2025, we expect markets to remain competitive and expect growth in wireless to continue to be impacted by the number of newcomers to Canada,” Rogers Chief Executive Officer Tony Staffieri said on a call with analysts. “Our 2025 outlook reflects continued growth in service revenue, adjusted Ebitda and free cash flow.”
Rogers bought a 37.5% stake in Maple Leaf Sports & Entertainment Ltd. from rival BCE Inc. for C$4.7 billion in September, giving it control of the most valuable sports franchise in Canada. Staffieri said the company would not be issuing stock to fund the stake purchase.
In October, management said Rogers was close to a C$7 billion ($4.9 billion) structured equity investment deal to finance parts of its network and cut down on debt. Sources familiar with the matter identified Blackstone Inc. as the bidder.
Bank of Nova Scotia analyst Maher Yaghi said if the financing deal “does not close on good terms,” Rogers’ leverage at the end of 2025 could rise to 4.4 times earnings from his current estimate of 3.7 times.
Rogers management said it was continuing to work on the proposed deal.
(Updates with share price movement and additional details, beginning in the second paragraph.)
Story Continues
