Rogers Communications Inc. Class A · TSX:RCI.A
Rogers Communications Inc. Class A — Q4 2023 Earnings Presentation
26 slides from Rogers Communications Inc. Class A's earnings presentation, Feb 1, 2024
Slide 1: Q4 2023 Results
Q4 2023 Results February 1, 2024
Slide 2: Cautionary note
Cautionary note The following materials are for presentation purposes only. They accompany the discussions held during Rogers Communications Inc.’s (Rogers) investor conference call on February 1, 2024. These materials should be read in conjunction with the disclosure documents referenced below and
Slide 3: Tony Staffieri, President and CEO
Tony Staffieri President and CEO 3
Slide 4: Strong Q4 & 2023 execution
Strong Q4 & 2023 execution • Record 2023 results driven by strong execution on Shaw Transaction • Robust 2023 performance as more customers choose Rogers than any other carrier in Canada, for second straight year • Industry-leading Q4 financial growth in Wireless and Cable • Best in sector Q4 Cable
Slide 5: Q4 consolidated results
Q4 consolidated results +30% +39% Total service Adjusted revenue EBITDA1 ($M) ($M) 4,470 2,329 3,436 1,679 Q4’22 Q4’23 Q4’22 Q4’23 5
Slide 6: Wireless
Wireless 184K 63.9% Postpaid mobile Adjusted EBITDA phone margin net adds (‘000s) (%) 63.9 193 184 63.2 Q4’22 Q4’23 Q4’22 Q4’23 6
Slide 7: Cable
Cable 20K 56.1% Retail Internet Adjusted Adjusted EBITDA EBITDA net adds margin margin2 (‘000s) (%) 56.1 20 51.2 7 Q4’22 Q4’23 Q4’22 Q4’23 7
Slide 8: Select Q4 industry leading initiatives
Select Q4 industry leading initiatives • Signed agreement with SpaceX and Lynk Global to bring satellite-to-mobile coverage and completed Canada’s first test call • Delivered an additional 50 kilometres of 5G cellular connectivity on Highway 16 in British Columbia to improve public safety: target to
Slide 9: Glenn Brandt, CFO
Glenn Brandt CFO © ROGERS
Slide 10: Q4 Wireless results
Q4 Wireless results +9% +10% +43bps (1%) Service Adjusted Postpaid mobile Mobile phone revenue EBITDA1 phone churn ARPU2 ($M) ($M) (%) ($) 2,020 1,291 1,856 1.67 1,173 1.24 58.69 57.96 Q4’22 Q4’23 Q4’22 Q4’23 Q4’22 Q4’23 Q4’22 Q4’23 10
Slide 11: Q4 Cable results
Q4 Cable results +95% +113% +490bps Revenue Adjusted Adjusted EBITDA EBITDA1 margin2 ($M) ($M) (%) 1,982 1,111 1,019 56.1 522 51.2 Q4’22 Q4’23 Q4’22 Q4’23 Q4’22 Q4’23 11
Slide 12: Q4 Media results
Q4 Media results (8%) (93%) Revenue Adjusted EBITDA1 ($M) ($M) 606 558 57 4 Q4’22 Q4’23 Q4’22 Q4’23 12
Slide 13: Q4 Capital expenditures
Q4 Capital expenditures +22% Capital expenditures ($M) 946 776 Q4’22 Q4’23 13
Slide 14: Q4 consolidated results
Q4 consolidated results In millions of dollars, except margins and per share amounts Q4’23 % Change Total service revenue 4,470 30 Adjusted EBITDA1 2,329 39 Adjusted EBITDA margin2 43.7% 3.4pts Net income 328 (35) Diluted earnings per share $0.62 (38) Adjusted net income3 630 14 Adjusted diluted ear
Slide 15: Strong financial position
Strong financial position Available liquidity4 of $5.9B Weighted average interest rate of 4.85% with average term to maturity of 10.4 years Debt leverage ratio3 4.7x 15
Slide 16: 2024 Guidance
2024 Guidance 2023 2024 Guidance (In millions of dollars, except percentages) Actual Ranges Total service revenue $16,845 Increase of 8% to 10% Adjusted EBITDA $8,581 Increase of 12% to 15% Capital expenditures $3,934 $3,800 to $4,000 Free cash flow $2,414 $2,900 to $3,100 Note: For further informat
Slide 17: Q4 2023 Results
Q4 2023 Results February 1, 2024
Slide 18: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures We use the following "non-GAAP financial measures" and other "specified financial measures" (each within the meaning of applicable Canadian securities law). These are reviewed regularly by management and the Board in assessing our performance and making decision
Slide 19: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Non-GAAP ratios Specified financial measure How it is useful How we calculate it Adjusted basic ● To assess the performance of our businesses before the effects of Adjusted net income earnings per the noted items, because they affect the comparability of our div
Slide 20: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Capital management measures Specified financial measure How it is useful Free cash flow ● To show how much cash we generate that is available to repay debt and reinvest in our company, which is an important indicator of our financial strength and performance. ●
Slide 21: Reconciliation of adjusted EBITDA
Non-GAAP and Other Financial Measures Reconciliation of adjusted EBITDA Three months ended December 31 Twelve months ended December 31 (In millions of dollars) 2023 2022 2023 2022 Net income 328 508 849 1,680 Add: Income tax expense 194 188 517 609 Finance costs 568 287 2,047 1,233 Depreciation and
Slide 22: Reconciliation of adjusted net income
Non-GAAP and Other Financial Measures Reconciliation of adjusted net income Three months ended December 31 Twelve months ended December 31 (In millions of dollars) 2023 2022 2023 2022 Net income 328 508 849 1,680 Add (deduct): Restructuring, acquisition and other 86 58 685 310 Depreciation and amort
Slide 23: Reconciliation of pro forma trailing 12-month adjusted EBITDA
Non-GAAP and Other Financial Measures Reconciliation of pro forma trailing 12-month adjusted EBITDA As at December 31 (In millions of dollars) 2023 Trailing 12-month adjusted EBITDA 8,581 Add (deduct): Acquired Shaw business adjusted EBITDA - January 2023 to March 2023 514 Pro forma trailing 12-mont
Slide 24: Reconciliation of free cash flow
Non-GAAP and Other Financial Measures Reconciliation of free cash flow Three months ended December 31 Twelve months ended December 31 (In millions of dollars) 2023 2022 2023 2022 Cash provided by operating activities 1,379 1,145 5,221 4,493 Add (deduct): Capital expenditures (946) (776) (3,934) (3,0
Slide 25: Adjusted net debt and debt leverage ratio
Non-GAAP and Other Financial Measures Adjusted net debt and debt leverage ratio We use adjusted net debt and debt leverage ratio to conduct valuation-related analysis and to make capital structure-related decisions. As at As at December 31 December 31 (In millions of dollars, except ratios) 2023 202
Slide 26: Available liquidity
Non-GAAP and Other Financial Measures Available liquidity As at December 31, 2023 (In millions of dollars) Total sources Drawn Letters of credit US CP program 1 Net available Cash and cash equivalents 800 — — — 800 Bank credit facilities 2: Revolving 4,000 — 10 151 3,839 Non-revolving 500 — — — 500
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