Rogers Communications Inc. Class A · TSX:RCI.A
Rogers Communications Inc. Class A — Q1 2018 Earnings Presentation
19 slides from Rogers Communications Inc. Class A's earnings presentation, Apr 19, 2018
Slide 1: Q1 2018 Results
Q1 2018 Results April 19, 2018 1|
Slide 2: Cautionary note
Cautionary note The following materials are for presentation purposes only. They accompany the discussions held during Rogers’ investor conference call on April 19, 2018. These materials should be read in conjunction with the disclosure documents referenced below. Certain statements made in this pre
Slide 3: Delivering a strong start to 2018
Delivering a strong start to 2018 Consolidated (Prior Accounting Basis) Total service Adjusted revenue +6% EBITDA +11% ($M) ($M) 3,214 3,410 1,153 1,281 Q1’17 Q1’18 Q1’17 Q1’18 • Total service revenue growth of 6% and adjusted EBITDA growth of 11% • Strength of Wireless and Cable business units unde
Slide 4: Exceptional Wireless results
Exceptional Wireless results Postpaid net adds increased Postpaid churn improved by Blended ARPU growth of +35k or up 58% 2 bps +5% (000s) (%) ($) 95 62.67 60 1.10 1.08 59.96 Q1’17 Q1’18 Q1’17 Q1’18 Q1’17 Q1’18 Prior Accounting Basis • Postpaid net additions of 95K - highest Q1 postpaid net addition
Slide 5: Solid performance in Cable
Solid performance in Cable Cable revenue increased Adjusted EBITDA growth of Total Service Units increased +1% +4% +41k or up 1% ($M) ($M) (‘000s) 969 416 433 5,151 5,192 960 Q1’17 Q1’18 Q1’17 Q1’18 Q1’17 Q1’18 • Competitive advantage in Internet service continues to drive growth • Q1 Internet reven
Slide 6: Sports driving growth in Media
Sports driving growth in Media Strong Media revenue and profit driven by sports Media revenue Sportsnet remains Canada’s #1 sports media brand for third straight year ~60% Exclusive national 12-year licensing agreement Broadcasting, Owner of the Toronto Blue Jays Sports TSC and other baseball club 6
Slide 7: Leading the way on 5G
Leading the way on 5G Testing 5G in Completed live Partnering with multiple cities tests at the Rogers Ericsson to bring and frequencies Centre – 1Gbps 5G to Canadians download speeds 77 || 2018 Q1 Results
Slide 8: Strategic competitive advantage
Strategic competitive advantage World-leading Internet service IPTV Service • Download speeds of up to • On track with Ignite TV launch 1 Gigabit per second available this year across entire footprint • Innovative, robust Connected • Future-proofed with DOCSIS Home roadmap technology 10Gbps Netflix
Slide 9: Relentless focus on the customer
Relentless focus on the customer Improving customer experience in a very methodical and prioritized manner Best Q1 postpaid churn in 15 years Double-digit reduction in customer calls year on year Significant increase in digital adoption 99 || 2018 Q1 Results
Slide 10: Financial performance
Financial performance 10 | 2018 Q1 Results
Slide 11: Q1 Key financial performance
Q1 Key financial performance Prior Accounting Basis IFRS 15 Q1’18 %Chg Q1’18 %Chg Total revenue 3,540 6 3,633 8 Q1 continued strong service revenue growth; Wireless 2,098 7 2,191 9 margin expansion reflects solid progress on Cable 969 1 969 1 target Media 532 12 532 12 Total service revenue 3,410 6
Slide 12: Q1 Wireless – Financial results
Q1 Wireless – Financial results Total Service Adjusted Blended revenue +7% revenue +7% EBITDA +9% ARPU +5% ($M) ($M) ($M) ($) Prior Accounting Basis 2,098 1,970 1,968 877 62.67 1,849 808 59.96 Q1’17 Q1’18 Q1’17 Q1’18 Q1’17 Q1’18 Q1’17 Q1’18 Total Service Adjusted Blended IFRS 15 revenue +9% revenue
Slide 13: Q1 Cable – Financial results
Q1 Cable – Financial results Cable Internet Adjusted Adj. EBITDA revenue +1% revenue +7% EBITDA +4% margin +140 bps ($M) ($M) ($M) (%) 960 969 506 416 433 44.7 474 43.3 Q1’17 Q1’18 Q1’17 Q1’18 Q1’17 Q1’18 Q1’17 Q1’18 • Cable business driven by growth in Internet • Internet revenue growth of 7% led b
Slide 14: Q1 Media – Financial results
Q1 Media – Financial results Media Adjusted revenue +12% EBITDA 177% ($M) ($M) 532 23 474 (30) Q1’17 Q1’18 Q1’17 Q1’18 • Media revenue growth driven by a MLB distribution and higher Sportsnet subscription revenue • Excluding the MLB distribution, healthy Media revenue and adjusted EBITDA growth 14 |
Slide 15: Q1 Financial performance
Q1 Financial performance Prior Accounting Basis IFRS 15 Q1’18 %Chg Q1’18 %Chg Strong Q1 free cash flow Net income 383 30 425 37 despite increase in capital expenditures Adjusted net income 435 39 477 45 Q1 Wireless capex related to Adjusted basic EPS $0.84 38 $0.93 45 preparation of network for 5G C
Slide 16: Enhancing financial flexibility
Enhancing financial flexibility Strong adjusted EBITDA contributed to cash provided Debt by operating activities of $885 million in Q1 Leverage Ratio 0.3 Continue to focus on meaningful progress towards our 3.0 target debt leverage ratio of ≤2.5 2.7 Q1’17 Q1'18 NCIB initiated to provide capability t
Slide 17: 2018 guidance maintained
2018 guidance maintained 2017 2018 Guidance Revenue 14,369 3% - 5% growth Adjusted EBITDA 5,502 5% - 7% growth Capital expenditures 2,436 2,650 to 2,850 Free cash flow 1,685 3% - 5% growth (In millions of dollars, except percentages) Focused on driving sustainable growth in our core business while i
Slide 18: IFRS 15 impact – Summary
IFRS 15 impact – Summary Prior Accounting Basis IFRS 15 Q1’18 % Chg Q1’18 % Chg Total revenue 3,540 6 3,633 8 Wireless 2,098 7 2,191 9 IFRS 15 results in higher Cable 969 1 969 1 allocation of Wireless Media 532 12 532 12 revenue towards Total service revenue 3,410 6 3,127 5 equipment revenue with a
Slide 19: Q&A
Q&A 19 |
Rogers Communications — Q1 2018 Earnings Presentation on 6ix