Rogers Communications (TSX:RCI.A) reported strong year-over-year revenue and profit growth for the third quarter on record mobile phone customer additions during the period.
During the three months, Rogers said it added 225,000 postpaid mobile phone customers, the best quarter on record and about 27% more than expected by analysts suggesting the company has benefitted from Canada’s strong immigration.
It added 261,000 mobile phone customers, up 40,000 from the year-ago quarter, its best-ever quarterly result, and combined mobile phone and internet net additions were 279,000, up 52,000 from the same period in 2022.
3Q revenue rose 36% from C$3.74 billion in the year-ago quarter to C$5.09 billion, in line with analyst estimates. Service revenue increased 40% from C$3.23 billion to C$4.53 billion.
The company’s earnings of C$1.27 per share topped analyst estimates of C$1.10. Its adjusted net income rose from C$436 million or C$0.84 per share in the year-ago quarter to C$679 million or C$1.27 per share.
“We continued to deliver industry-leading results in the third quarter, reflecting seven straight quarters of growth and momentum," Rogers CEO Tony Staffieri said.
Rogers also reaffirmed its 2023 outlook for total service revenue growth of 26% to 30% and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) growth in the range of 33% to 36%.
It continues to expect its free cash flow at the upper end of its guidance of C$2.2 billion to C$2.5 billion and capital expenditures in the range of C$3.7 billion to C$3.9 billion.
Rogers’ Toronto-listed shares moved higher on its results, up 4% at C$57.58.
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