15 slides from Rogers Communications Inc. Class A's earnings presentation, Oct 23, 2019
Slide 1: Q3 2019 Results
Q3 2019 Results October 23, 2019 1 | Q3 2019 Results
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 October 23, 2019. These materials should be read in conjunction with the disclosure documents referenced below. Cer
Slide 3: The shift to Rogers Infinite unlimited data plans
The shift to Rogers Infinite™ unlimited data plans 1 million 3x the rate of adoption Positioned for the future subscribers of "no more overage" with growing data usage now on Rogers Infinite plans than expected 3 3 || Q3 Q32019 2019Results Results
Slide 4: Continued Internet growth
Continued Internet growth 4 4 || Q3 Q32019 2019Results Results
Slide 5: First principles of Rogers Infinite plans
First principles of Rogers Infinite plans 1 / Accelerate Data Growth: 60% of customers upgrading to Rogers Infinite plans Average data usage up over 50% for Rogers Infinite customers 2 / Drive the “Simplicity Dividend”: Likelihood to recommend up approximately 30% 50% reduction in top customer call
Slide 6: Building on customer first
Building on customer first ™ 6 6 || Q3 Q32019 2019Results Results
Slide 7: Financial performance
Financial performance 7 7 || Q3 Q32019 2019Results Results
Slide 8: Q3 Wireless results
Q3 Wireless results 0% +4% +190 bps -2% Total revenue Adjusted EBITDA Adj. EBITDA margin Blended ARPU ($M) ($M) (%) ($) 2,324 1,138 49.0 57.21 2,331 1,099 47.1 56.01 Q3'18 Q3'19 Q3'18 Q3'19 Q3'18 Q3'19 Q3'18 Q3'19 Postpaid net adds of 103k 8 | Q3 2019 Results
Slide 9: Q3 Cable results
Q3 Cable results +1% +2% +40 bps +7% Revenue Adjusted EBITDA Adj. EBITDA margin Internet revenue ($M) ($M) (%) ($M) 994 499 50.2 570 983 490 49.8 534 Q3'18 Q3'19 Q3'18 Q3'19 Q3'18 Q3'19 Q3'18 Q3'19 Internet net adds of 41k 9 | Q3 2019 Results
Slide 10: Q3 Media results
Q3 Media results -1% +78% Revenue Adjusted EBITDA ($M) ($M) 488 130 483 73 Q3'18 Q3'19 Q3'18 Q3'19 10 | Q3 2019 Results 8| Q3 2019 Results
Slide 11: Q3 consolidated results
Q3 consolidated results Q3'19 %Chg In millions of dollars, except percentages and per share amounts Service revenue results reflect accelerated Total service revenue 3,233 (1) adoption of Rogers Infinite plans Adjusted EBITDA 1,712 6 Adjusted EBITDA margin 45.6% 2.6 pts Healthy FCF growth driven by
Slide 12: Returning capital to shareholders
Returning capital to shareholders Q3’19 YTD $93 million $1.1 billion +43% share buyback up $317 million cash returned to shareholders in $256 million first nine months of 2019 dividends paid 12 | Q3 2019 Results 12 | Q3 2019 Results
Slide 13: Financial flexibility
Financial flexibility 2.8x Debt Leverage Ratio +0.3x -0.2x Q3 EBITDA +0.2x 600 MHz growth + 2.8x • Cash provided by • Acquisition of 600 MHz acquisition increased operating activities of spectrum impacted debt 2.5x IFRS 16 value of leverage ratio by 0.3x impact $1.3 billion in the third debt quarter
Slide 14: Guidance update
Guidance update 2019 Guidance Initial Revised Revenue 3% to 5% increase Decrease of 1% to increase of 1% Adjusted EBITDA 7% to 9% increase 3% to 5% increase Capital Expenditures $2,850M to $3,050M $2,750M to $2,850M Free Cash Flow Increase of $200M to $300M Increase of $100M to $200M Revised guidanc
Slide 15: Q3 2019 Results
Q3 2019 Results Q&A 15 15 || Q3 Q32019 2019Results Results