Rogers Communications (TSX:RCI.A) shares moved lower following a third quarter revenue miss driven by fewer-than-expected wireless subscriber additions.
The Blue Jays baseball team owner reported earnings per share (EPS) of $1.42, topping estimates of $1.34, but revenue of $5.13 billion was short of the $5.17 billion expected.
It added 101,000 postpaid mobile phone net additions, short of the 129,040 consensus. Combined mobile phone and internet net additions were 227,000 in Q3.
Rogers also announced a C$7 billion (approximately US$5 billion) equity debt financing deal with an unnamed global financial investor.
The financing is expected to close in the fourth quarter and proceeds will be used to reduce the company’s debt.
"We continued to build on our momentum and deliver industry-leading results and attract more Canadians than any other carrier," Rogers CEO Tony Staffieri said in a statement accompanying the quarterly results.
"We delivered strong market share, record margins in Cable and Wireless, and we are on track to deliver our full-year targets.”
Rogers reiterated its full year outlook, continuing to expect total service revenue growth of 8% to 10% and adjusted earnings before interest, taxes, deprecation and amortization (EBITDA) growth of 12% to 15%.
The company’s Toronto-listed shares traded down 3.6% at C$52 late morning on Thursday.