Rogers Communications Inc. Class A · TSX:RCI.A
Rogers Communications Inc. Class A — Q1 2019 Earnings Presentation
18 slides from Rogers Communications Inc. Class A's earnings presentation, Apr 18, 2019
Slide 1: Q1 2019 Results
Q1 2019 Results April 18, 2019 1|
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 April 18, 2019. These materials should be read in conjunction with the disclosure documents referenced below. Certa
Slide 3: Disciplined execution
Disciplined execution Consolidated +3%1 1 +7%1 Total service revenue Adjusted EBITDA ($M) ($M) 1,338 1,335 3,143 3,127 Q1'18 Q1’19 Q1'18 Q1’19 1. Excluding the impact of certain baseball-related transactions. Including the impact of these transactions, total service revenue grew by 1% and adjusted E
Slide 4: Focus on Wireless fundamentals – record churn of 0.99%
Focus on Wireless fundamentals – record churn of 0.99% +1% -9 bps 23k Blended ARPU Postpaid churn Postpaid net adds ($) (%) (000s) 95 54.13 53.68 1.08 0.99 23 Q1'18 Q1’19 Q1'18 Q1’19 Q1'18 Q1’19 4| Q1 2019 Results
Slide 5: Driving growth in Cable through Internet
Driving growth in Cable through Internet +160 bps 14k Internet penetration1 Internet net adds (%) (000s) 55.8 26 0.99 54.2 14 Q1'18 Q1'19 Q1'18 Q1'19 • Ability to offer Ignite Gigabit Internet over entire cable footprint continues to be our competitive advantage 1. Internet penetration calculated as
Slide 6: Focusing Media on sports and local content
Focusing Media on sports and local content 66| | Q1 2019 Results
Slide 7: Returning capital to shareholders
Returning capital to shareholders Over $1 billion cash expected to be returned to shareholders in 2019 $155 million first share buyback in 6 years 77| | Q1 2019 Results
Slide 8: Leading investments in 5G
Leading investments in 5G 88| | Q1 2019 Results
Slide 9: Winning formula
Winning formula World-class Internet service Ignite TV • Download speeds of up to • Significantly improved churn, 1 gigabit per second available likelihood to recommend and across entire cable footprint average revenue per account • Success-based investment • Innovative, robust Connected future-proo
Slide 10: Financial performance
Financial performance 10 | Q1 2019 Results
Slide 11: Q1 consolidated results
Q1 consolidated results +1% Stable +40 bps Total service revenue Adjusted EBITDA Adj. EBITDA margin ($M) ($M) (%) 3,143 37.2 3,127 1,338 1,335 36.8 Q1'18 Q1'19 Q1'18 Q1'19 Q1'18 Q1'19 • Q1 performance reflects the strength of business fundamentals and focus on long-term growth • Grew total service r
Slide 12: Q1 Wireless results
Q1 Wireless results +4% +9% +1% 0.99% Service revenue Adjusted EBITDA Blended ARPU Postpaid churn ($M) ($M) ($) (%) 1,747 1,015 54.13 1.08 1,687 934 53.68 0.99 Q1'18 Q1'19 Q1'18 Q1'19 Q1'18 Q1'19 Q1'18 Q1'19 • Strong revenue and adjusted EBITDA growth delivered in the first quarter • Focus on balanc
Slide 13: Q1 Cable results
Q1 Cable results +1% +3% +7% +90 bps Revenue Adjusted EBITDA Internet revenue Adj. EBITDA margin ($M) ($M) ($M) (%) 976 445 541 45.6 969 433 506 44.7 Q1'18 Q1'19 Q1'18 Q1'19 Q1'18 Q1'19 Q1'18 Q1'19 • Internet continues to be the growth driver and remains an anchor for our Cable business • Adjusted E
Slide 14: Q1 Media results
Q1 Media results Revenue Adjusted EBITDA ($M) ($M) 532 23 468 (84) Q1'18 Q1'19 Q1'18 Q1'19 • Excluding certain baseball-related transactions, Media revenue would have been flat and adjusted EBITDA would have decreased 25% 14 | Q1 2019 Results
Slide 15: Q1 financial performance
Q1 financial performance Q1'19 %Chg Invested $617 million in capex during the quarter In millions of dollars, except percentages and per share amounts Net income 391 (8) Continue to invest in 4.5G and ready Adjusted net income 405 (15) our Wireless network for 5G Adjusted diluted EPS $0.78 (13) Cont
Slide 16: Financial flexibility
Financial flexibility 2.7x Debt Leverage Ratio 0.2x 2.7x IFRS 16 Strong adjusted EBITDA contributed to cash 2.5x Impact provided by operating activities of $1.0 billion in the first quarter of 2019 IFRS 16 implementation impacted debt leverage ratio by 0.2x Investment-grade balance sheet remains hea
Slide 17: 2019 guidance
2019 guidance Revenue 3% - 5% increase Adjusted EBITDA 7% - 9% increase Capital expenditures $2.85B – $3.05B Free cash flow +$200M – $300M For further information, please see “Financial and Operating Guidance” in our 2018 Annual Report 17 | Q1 2019 Results
Slide 18: Q1 2019 Results
Q1 2019 Results Q&A 18 |
Rogers Communications — Q1 2019 Earnings Presentation on 6ix