Rogers Communications Inc. Class A · TSX:RCI.A
Rogers Communications Inc. Class A — Q4 2019 Earnings Presentation
16 slides from Rogers Communications Inc. Class A's earnings presentation, Jan 22, 2020
Slide 1: Q4 2019 Results
Q4 2019 RESULTS January 22, 2020 1 | Q4 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 January 22, 2020. These materials should be read in conjunction with the disclosure documents referenced below. Cer
Slide 3: Positioned for Success
Positioned for Success Rogers Infinite™ Rogers Ignite TV™ Launched unlimited Accelerated rollout data plans across footprint Customer experience Improved service level, increased digital adoption, higher LTR1 scores Culture at Rogers Record level of engagement and among Canada’s most admired corpora
Slide 4: Continued momentum with Rogers Infinite
Continued momentum with Rogers Infinite™ 1.4 million subscribers now on Rogers Infinite Simplicity dividend: Positioned for the improved customer future with unlimited experience, higher data plans LTR1, and lower costs 1. Likelihood to recommend 4 | Q4 2019 Results
Slide 5: Cable led by Internet
Cable led by Internet Internet product continues to provide stable growth 1 Gbps capability across entire Cable footprint driving increase in market penetration Ignite TV™ subscriber base now over 325,000 5 |5Q4 | Q4 2019 2019 Results Results
Slide 6: Returning capital to shareholders
Returning capital to shareholders $1.7 billion returned to shareholders in 2019 +69% +36% up $683 million total return to shareholders over past 3 years1 6 | Q4 2019 Results 1. Total shareholder return from Jan 1, 2017 – Dec 31, 2019
Slide 7: Leading the way for 5G in Canada
Leading the way for 5G in Canada Rolling out Canada’s first 5G network in downtown Vancouver, Toronto, Ottawa and Montreal Rogers’ 5G network will expand to over 20 more markets by the end of the year Exclusive Canadian member of the global 5G Future Forum 7 |7Q4 | Q4 2019 2019 Results Results
Slide 8: Financial Performance
FINANCIAL PERFORMANCE 8 | Q4 2019 Results
Slide 9: Q4 Wireless results
Q4 Wireless results -1% 4% +100 bps -1% Service Adjusted Adj. EBITDA Blended revenue EBITDA margin ARPU ($M) ($M) (%) ($) 1,806 1,064 42.7 1,788 1,028 41.7 55.91 55.26 Q4'18 Q4'19 Q4'18 Q4'19 Q4'18 Q4'19 Q4'18 Q4'19 Postpaid net adds of 131k 9 | Q4 2019 Results
Slide 10: Q4 Cable results
Q4 Cable results 0% +2% +100 bps +7% Revenue Adjusted Adj. EBITDA Internet EBITDA margin revenue ($M) ($M) (%) ($M) 49.4 50.4 989 987 497 575 489 536 Q4'18 Q4'19 Q4'18 Q4'19 Q4'18 Q4'19 Q4'18 Q4'19 Internet net adds of 27k 10 | Q4 2019 Results
Slide 11: Q4 Media results
Q4 Media results -2% -45% Revenue Adjusted EBITDA ($M) ($M) 540 530 40 22 Q4'18 Q4'19 Q4'18 Q4'19 11 | Q4 2019 Results
Slide 12: Q4 consolidated results
Q4 consolidated results Q4'19 %Chg In millions of dollars, except percentages and per share amounts Service revenue results reflect accelerated Total service revenue 3,244 (1) adoption of Rogers Infinite plans Adjusted EBITDA 1,530 1 Adjusted EBITDA margin 38.7% 0.1 pts Healthy free cash flow growth
Slide 13: Returning capital to shareholders
Returning capital to shareholders Q4’19 2019 $357 million $1.7 billion share buyback cash returned to shareholders $256 million dividends paid +69% up $683 million in 2019 13 | Q4 2019 Results
Slide 14: Financial flexibility
Financial flexibility 2.9x Debt Leverage Ratio +0.3x -0.1x 2019 +0.2x 600 MHz EBITDA 2.9x • Cash provided by • Acquisition of 600 MHz acquisition growth operating activities of spectrum impacted debt 2.5x IFRS 16 leverage ratio by 0.3x impact $1.2 billion in the fourth quarter of 2019 • IFRS 16 impl
Slide 15: 2020 Guidance
2020 Guidance 2019 Results 2020 Guidance Service Revenue $12,965M 0% Decrease of 2% to increase of 2% Adjusted EBITDA $6,212M +4% Increase of 0% to 2% Capital Expenditures $2,807M +$17M $2,700M to $2,900M Free Cash Flow $2,278M +7% Increase of 2% to 4% Guidance reflects faster-than-expected adoption
Slide 16: Q4 2019 Q&A
Q4 2019 Q&A 16 | Q4 2019 Results
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