15 slides from Rogers Communications Inc. Class A's earnings presentation, Jul 21, 2016
Slide 1: Rogers Q2 2016 Results
Rogers Q2 2016 Results 21| 07 | 16 1
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: Rogers 3.0 re-accelerating revenue growth
Rogers 3.0 re-accelerating revenue growth o Revenue increased by 2% with strong performances in Wireless and Internet o Subscriber metrics improved across all segments o Adjusted operating profit increased by 1% Wireless Service Revenue Growth Internet Revenue Growth %YoY %YoY 5% 15% 4% 11% 11% 3% 3
Slide 4: Continuing momentum in Wireless Service Revenue
Continuing momentum in Wireless Service Revenue 5% o Maintained momentum in our largest segment $M 1,788 o Service revenue increased by 5% or $81M to $1.79B 1,707 Q2'15 Q2'16 Postpaid Net Adds 41k o Postpaid net adds increased for the fourth consecutive quarter 000s 65 o Postpaid net adds increased
Slide 5: Meeting the 'Need for Speed'
Meeting the ‘Need for Speed’ Internet Revenue 15% o Internet revenue continued to grow at double digit rates $M $376 $327 o Internet revenue increased by 15% or $49M to $376M Q2'15 Q2'16 Internet Net Adds 200% o Best Q2 Internet net adds in 8 years 000s 12 o Internet net adds increased 200% or 8k to
Slide 6: Strengthening our Cable offerings
Strengthening our Cable offerings Plan to introduce IPTV at end of 2016 Rogers 4K 1 Gbps Internet rollout to Leadership in 4K over 4M homes in 2016 broadcasting Enabled by capacity and speed of Rogers network 6
Slide 7: Improving customer experience
Improving customer experience Q2 postpaid wireless churn reduction Wireless postpaid churn improved for third consecutive quarter -5bps Number of times customers needed to contact us The number of times customers needed to contact us reduced by 8% -8% Number of Rogers brand self-serve transactions R
Slide 8: Media revenue growth driven by sports
Media revenue growth driven by sports o Overall growth in Media revenue driven by our diversified sports portfolio o Most-watched first half Blue Jays season in Sportsnet’s Sports history o Revenue growth and positive margin contribution in year 2 of NHL national agreement Traditional o Previously a
Slide 9: Solid progress in Q2 2016
Solid progress in Q2 2016 Q2’16 Q2’15 Chg Total Revenue 3,455 3,403 2% Strong performances Service Revenue1 3,309 3,204 3% in Wireless and Internet drove solid Wireless 1,788 1,707 5% service revenue Cable 869 867 - growth Business Solutions 95 93 2% Media 615 582 6% Adjusted Operating Profit 1,347
Slide 10: Continuing positive trends in Wireless
Continuing positive trends in Wireless Increased service revenue Increased postpaid gross adds 5% 12% 000s 1,788 349 $M 1,707 313 Q2'15 Q2'16 Q2'15 Q2'16 Increased postpaid net adds Increased postpaid ARPA1 growth 1pt 171% 000s 65 5% 4% 24 Q2'15 Q2'16 Q2'15 Q2'16 1 Average revenue per account 10
Slide 11: Improving Cable results from Internet
Improving Cable results from Internet Increased Internet revenue Increased Internet net adds 15% 200% 12 000s $M 376 327 4 Q2'15 Q2'16 Q2'15 Q2'16 Internet revenue grew as % of Cable Improved TSU1 net losses 5pts (6) (39) 000s % 43% 38% 33k Q2'15 Q2'16 Q2'15 Q2'16 1 Total service units 11
Slide 12: Offering 1 Gigabit speeds in 2016
Offering 1 Gigabit speeds in 2016 NO truck rolls nor work on customer premise required <$50/home in 20161 Our network uses highly flexible and scalable technology so that capex is success-based, driven by demand Simplicity is based on our ability to use available channel capacity from having removed
Slide 13: Financial flexibility
Financial flexibility Improved leverage ratio1 from last quarter to 3.1 and expect it to continue to decline Generated strong operating cash flow of $1,121M and free cash flow of $495M Strong investment grade ratings with stable outlooks from Fitch, Moody’s and S&P $2.2B in liquidity; average cost o
Slide 14: Reaffirming 2016 outlook
Reaffirming 2016 outlook 2015 Actuals 2016 Guidance Total Revenue $13,414 Increase of 1% to 3% Adjusted Operating Profit $5,032 Increase of 1% to 3% Capital Expenditures $2,440 $2,300 to $2,400 Free Cash Flow $1,676 Increase of 1% to 3% $ millions 14 Confidential | Presentation Title
Slide 15: Rogers Q2 2016 Results
Rogers Q2 2016 Results 21| 07 | 16 15