17 slides from Rogers Communications Inc. Class A's earnings presentation, Oct 18, 2017
Slide 1: Rogers Communications
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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: Primary focus is growing our core business
Primary focus is growing our core business Delivering on the fundamentals - growth in revenue, profit, margins, free cash flow and return on investment Focusing on our strategic priorities - our customers, our people, investments in our networks, innovation and growth Driving deeper end-to-end accou
Slide 4: Q3 Highlights
Q3 Highlights * Overall results reflect continued solid momentum * Increased 2017 guidance for adjusted operating profit (AOP) growth and incremental AOP to be invested in our networks for revised capex guidance; free cash flow guidance remains unchanged * Delivered excellent results across all key
Slide 5: Wireless operating metrics
Wireless operating metrics * Postpaid ARPA growth supported by continued 121.39 128.54 adoption of higher value Share Everything plans . * Blended ARPU growth of 2% Q3'16 Q3'17 (000s) Postpaid Highest postpaid net additions in 8 nevacss 114 ~ * Highest postpaid net additions in 8 years chest ves ’ +
Slide 6: Cable operating metrics
Cable operating metrics * TSU net additions impacted by lower Internet net additions given highly competitive environment with aggressive offers only selectively matched * Ignite Gigabit Internet service available to our entire Cable footprint 1 Residential Intesnetbase. Subscriber counts are key pe
Slide 7: Enhancing Cable offerings with X1 IPTV platform
xfinity | x1 Purchase Enhancing Cable offerings with X1 IPTV platform Best in class, next generation roadmap of video entertainment and connected home services Continuous stream of innovation: * natural language voice search and commands * deep integration of streaming services like Netflix * cloud
Slide 8: Sports represents ~60% of #1 sports media brand
Sports represents ~60% of #1 sports media brand Media revenue! Sw in Canada for the past two years in a row? fey Exclusive national if) 12-year licensing agreement Owner of the Toronto Broadcasting, Sports TSC and other @LIVE
Slide 9: Financial performance
Slide 10: Strong momentum in Wireless financials
Strong momentum in Wireless financials Service 2,011 | * Continued strong service revenue growth as ee +7% Q3'16 Q3'17 ($M) AOP 964 * Strong flow through of top line growth to AOP ° 884 +9% Q3'16 Q3'17 (%) * Margin expansion on better operating leverage margin 47.9 eer 47.1 and cost efficiencies +80
Slide 11: Robust Cable financials
Robust Cable financials * Cable revenue growth would have been 2% excluding impact of lower wholesale revenue" * Internet revenue growth would have been 9% excluding impact of lower wholesale revenue! * Cable AOP growth would have been 5% excluding impact of lower wholesale revenue! 1 Excluding the
Slide 12: Cable margin expansion
Cable margin expansion * Meaningful Cable AOP and margin growth on shift in product mix to higher margin Internet and cost efficiencies * Higher margin Internet revenue represents nearly half of total Cable revenue AOP margin +80 bps 49.8 O3'16 Q3'17 46% of Cable revenue is Internet O3'16 Q3'17
Slide 13: Media financials
@ LIVE Revenue down 3% year-on-year due to: the success of World Cup of Hockey held in 2016; and lower print revenue following our restructuring announced last year AOP down 18% year-on-year due to: lower print revenue following our restructuring announced last year; and higher Toronto Blue Jays sal
Slide 14: Q3 financial performance
Q3 financial performance Total revenue 3,581 3 Total service revenue? 3,450 4 Wireless 2,011 7 Continued strong revenue growth on Cable 869 1 ongoing momentum in Wireless Business Solutions 95 1 ~ Media 516 (3) Adjusted operating profit 1,463 6 Wireless 964 9 . Cable 440 2 Strong AOP growth driven b
Slide 15: Enhancing financial flexibility
Enhancing financial flexibility Strong AOP contributed to operating cash flow of $1,377 million Debt Decline in debt leverage ratio to 2.8 due to both debt repayment Leverage Ratio’ and strong AOP growth Continue to focus on meaningful progress toward target debt leverage ratio of <2.5 3.0 2.8 Stron
Slide 16: Revised 2017 outlook
Revised 2017 outlook Revenue Adjusted operating profit Capital expenditures’ Free cash flow 13,702 5,092 2,352 1,705 {in millions of dollars, except percentages) 3% - 5% growth 2% - 4% growth 2,250 to 2,350 2% - 4% growth unchanged 5% - 6% growth 2,350 to 2,450 unchanged Original Guidance Revised Gu
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