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Rogers Lifts Revenue Outlook as Q2 Profit Plummets and Subscriber Growth Slows

Asset sales, fee increases plus disciplined spending have bolstered its balance sheet after a sharp quarterly earnings drop.

Rogers Communications signage is pictured in Ottawa on Tuesday, July 12, 2022. Rogers Communications Inc. has launched a new satellite-to-mobile text messaging service, marking the latest step in its partnership with SpaceX and Lynk Global to eventually deliver full satellite-to-phone coverage across apps, data and voice service. THE CANADIAN PRESS/Sean Kilpatrick
Rogers Communications Inc. reported its second-quarter profit declined compared with a year ago as a result of higher restructuring, acquisition and other costs. Rogers Communications signage is pictured in Ottawa on Tuesday, July 12, 2022. THE CANADIAN PRESS/Sean Kilpatrick
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Overview

  • Rogers now expects service revenue growth of 3%–5% for 2025, up from its previous flat to 3% forecast.
  • Second-quarter net income fell 62% year-over-year to $148 million, driven by higher restructuring, acquisition and other costs.
  • Postpaid and prepaid wireless additions plunged 77% and 26% to 35,000 and 26,000 subscribers amid slower immigration and fewer student visas.
  • The company strengthened its financial position by completing a $6.7 billion equity deal with Blackstone and a $4.7 billion Maple Leaf Sports & Entertainment acquisition while reducing long-term debt to $39.8 billion.
  • Planned capital expenditures were trimmed to $3.8 billion for the year, connection fees were raised and a Foundever contract affecting about 900 jobs was terminated.