14 slides from Rogers Communications Inc. Class A's earnings presentation, Jan 26, 2017
Slide 1: Q4 2016 Results
Rogers Communications Inc. Q4 2016 Results 26 | 01 | 17
Slide 2: Cautionary note
Cautionary note Certain statements made in this presentation, including, but not limited to, statements relating to expected future events, financial and operating results, guidance, objectives, plans, strategic priorities and other statements that are not historical facts, are forward-looking. By t
Slide 3: Strong Q4 operating results & 2016 outlook achieved
Strong Q4 operating results & 2016 outlook achieved • Q4 results reflect continued strong revenue and subscriber growth, and translation to adjusted operating profit (AOP) and free cash flow improvement • Achieved 2016 guidance and expect a stronger growth profile in 2017 • Partnered with Comcast br
Slide 4: Accelerated operating momentum in Q4
Accelerated operating momentum in Q4 • Continued momentum in total service revenue growth and robust AOP growth driven by Wireless and Internet • Underpinned by strong subscriber performance in both Wireless and Cable ($M) ($M) 3,306 1,259 Total 3,214 1,226 service AOP revenue 1 +3% +3% Q4’15 Q4’16
Slide 5: Maintaining momentum in Wireless
Maintaining momentum in Wireless ($M) 1,858 • Driven by combination of subscriber Service additions and blended ARPU (+3%) revenue 1,747 and postpaid ARPA growth (+7%) +6% Q4’15 Q4’16 ($M) 792 • Improving flow-through of top-line AOP 754 growth to AOP +5% Q4’15 Q4’16 (000s) 93 Net adds • Sixth conse
Slide 6: Improving Cable on the strength of Internet
Improving Cable on the strength of Internet ($M) 855 858 • Cable revenue increased 2% excluding Cable the impact of lower wholesale revenue revenue from CRTC decision stable Q4’15 Q4’16 • Driven by ongoing shift in product mix ($M) 435 to higher-margin Internet services Cable 426 AOP • Cable AOP inc
Slide 7: Internet results reflect our competitive advantage
Internet results reflect our competitive advantage ($M) 378 • Internet revenue increased 12% Internet 348 revenue excluding the impact of lower wholesale revenue from CRTC decision +9% Q4’15 Q4’16 (000s) 30 Internet • Strong net adds reflect competitive net adds advantage in Internet +14k 16 YoY Q4’
Slide 8: Strengthening Cable with our Comcast partnership
Strengthening Cable with our Comcast partnership • Plan to bring customers the proven, best-in-class X1 IPTV platform in early 2018 • Includes access to Comcast’s state-of-the-art customer premise equipment, including advanced DOCSIS 3.1 WiFi Gateways – to begin launching in mid-2017 • Variable opex
Slide 9: Improving customer experience through self-serve
Improving customer experience through self-serve Increase in self-serve EnRoute saves Data manager transactions customers time offers control +42% YoY 1 MyRogers app offers family data control • Focused on being a leader in flexible self-service offerings • Launched many tools and offerings througho
Slide 10: Media focused on sports and shift to digital
Media focused on sports and shift to digital • Sportsnet #1 sports media brand in Canada for the second consecutive year Sports • Revenue and AOP impacted by fewer postseason Toronto Blue Jays games played and lower advertising revenue • Shifting from print to digital media to keep pace with changin
Slide 11: Wireless and Cable drove strong operating results
Wireless and Cable drove strong operating results Q4’16 Q4’15 Chg Total revenue 3,510 3,452 2% Strong total service Total service revenue 1 3,306 3,214 3% revenue growth largely Wireless 1,858 1,747 6% driven by Wireless Cable 857 853 - Business Solutions 94 94 - Media 550 560 (2%) 1,259 Adjusted op
Slide 12: Enhancing financial flexibility
Enhancing financial flexibility • Strong operating cash flow of $1,053M allowed $307M in debt repayment • Continue to focus on meaningful progress toward target leverage ratio of ≤2.5 • Strong investment-grade debt ratings with stable outlooks • $2.7B in available liquidity • Weighted average borrow
Slide 13: Stronger growth outlook in 2017
Stronger growth outlook in 2017 2016 Actuals 2017 Guidance Revenue 13,702 3% - 5% growth AOP 5,092 2% - 4% growth Capital expenditures 2,352 2,250 to 2,350 Free cash flow 1,705 2% - 4% growth (In millions of dollars, except percentages) • Building on momentum in Wireless and our competitive advantag
Slide 14: Well positioned to deliver increasing returns
Well positioned to deliver increasing returns 1 Delivering on our strategy to reaccelerate revenue and translate into attractive margins, profits, free cash flow and return on assets 2 Growth centred on management execution of existing opportunities without the need for major acquisitions 3 Strong f