Shares of Rogers Communications (RCI) hit an all-time high after the Canadian
telecommunications company released strong financial results.
Rogers’ stock climbed to an all-time intraday high above $80 yesterday (April 20) before ending
trading on the Toronto Stock Exchange at $76.07, up 3% on the day and bringing its year-to-
date gains to 25%.
The move higher in Rogers’ share price came after the company reported that its earnings per
share (EPS) rose 18% year-over-year to $0.91 in the first quarter. Analysts, on average, had
expected $0.83 in per-share profit. Revenue was in line with expectations at $3.62 billion.
Rogers’ wireless business led the way as revenue from that division rose 3% year-over-year to
$2.14 billion. Service revenue accounted for all of the growth, and Rogers noted in a news
release that roaming activity picked up amid “significantly increased travel.”
The wireless division’s subscriber growth accelerated, as 66,000 net postpaid customers were
added in the quarter. A year earlier, only 22,000 subscribers were added.
The company’s media division saw revenue climb 10% year-over-year to $482 million due to
higher sports-related revenue. However, the unit’s operating expenses rose at the same rate
due to a range of factors including the timing of salaries for the Toronto Blue Jays, the Major
League Baseball franchise that is owned by Rogers.
Despite the spotty outcome for Rogers’ media division, the company raised its full-year service
revenue and earnings forecasts.
Rogers is still awaiting final approvals to proceed with its planned $20 billion takeover of Shaw
Communications (SJR). The Canadian Radio-television and Telecommunications Commission
(CRTC) approved the deal last month. The transaction still requires approvals from the
Competition Bureau and Innovation, Science, and Economic Development Canada.
Rogers reiterated in its earnings release that it still expects the deal will close by the end of June
this year.