18 slides from Rogers Communications Inc. Class A's earnings presentation, Oct 19, 2018
Slide 1: Q3 2018 Results
Q3 2018 Results October 19, 2018 1|
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 19, 2018. These materials should be read in conjunction with the disclosure documents referenced below. Cer
Slide 3: Momentum reflected in continued strong results
Momentum reflected in continued strong results Consolidated Total revenue Adjusted EBITDA +3% +8% ($M) ($M) 3,769 1,620 3,646 1,503 Q3’17 Q3’18 Q3’17 Q3’18 3| 2018 Q3 Results
Slide 4: Executing on fundamentals in Wireless
Executing on fundamentals in Wireless Postpaid churn improved by Blended ARPU improved by Postpaid net adds of 7 bps +3% 124k (%) ($) (000s) 57.21 55.81 129 124 1.16 1.09 Q3’17 Q3’18 Q3’17 Q3’18 Q3’17 Q3’18 • Lowest Q3 postpaid churn since 2009 • ARPU growth as a result of maintaining discipline and
Slide 5: Growth in Cable driven by solid Internet performance
Growth in Cable driven by solid Internet performance Total Service Units net adds Internet net adds Internet penetration1 +5k +6k +150 bps (000s) (000s) (%) 17 35 55.2 12 29 53.7 Q3’17 Q3’18 Q3’17 Q3’18 Q3’17 Q3’18 • Solid results during an intensely competitive third quarter • Ability to offer Igni
Slide 6: Expanding margins in Media through cost efficiency
Expanding margins in Media through cost efficiency Revenue Adjusted EBITDA Adjusted EBITDA Margin - 5% +20% +320 bps ($M) ($M) (%) 516 488 61 73 15.0 11.8 Q3’17 Q3’18 Q3’17 Q3’18 Q3’17 Q3’18 • Improved cost structure driving margin expansion and offsetting revenue decline • Focused on driving growth
Slide 7: Driving continuous improvement in customer experience
Driving continuous improvement in customer experience Self-serve options New tools for Digital adoption and proactive proactive network Churn continues momentum outreach driving remediation reducing to decline in a fewer calls service truck rolls sustainable way 7| 2018 Q3 Results
Slide 8: 5G leadership in Canada
5G leadership in Canada Comprehensive 5G Strategic partnership with Launching LTE-M in partnership with Ericsson, UBC to build a Canadian Ontario to enable IoT North America’s 5G 5G ecosystem devices partner of choice 88| | 2018 Q3 Results
Slide 9: Moving towards the connected home
Moving towards the connected home Steady progress on the rollout of Ignite TV Atlantic Canada True all-IP employee service with trial in late an open October platform World’s best connected home roadmap 9| 2018 Q3 Results
Slide 10: Financial performance
Financial performance 10 | 2018 Q3 Results
Slide 11: Q3 key financial performance
Q3 key financial performance (In millions of $, except percentages and points) Q3’18 %Chg Total revenue 3,769 3 Wireless 2,331 6 Q3 continued strong service revenue growth; Cable 983 1 margin expansion reflects solid progress on Media 488 (5) goal Total service revenue 3,271 2 Wireless 1,837 5 Achie
Slide 12: Q3 Wireless – Financial results
Q3 Wireless – Financial results Service Adjusted Blended Blended Revenue +6% revenue +5% EBITDA +8% ABPU +4% ARPU +3% ($M) ($M) ($M) ($) ($) 2,331 1,837 1,099 66.20 57.21 2,203 1,757 1,017 63.78 55.81 Q3’17 Q3’18 Q3’17 Q3’18 Q3’17 Q3’18 Q3’17 Q3’18 Q3’17 Q3’18 • Service revenue growth reflects solid
Slide 13: Q3 Cable – Financial results
Q3 Cable – Financial results Internet Adjusted Adj. EBITDA Revenue +1% revenue +8% EBITDA +4% margin 160 bps ($M) ($M) ($M) (%) 49.8 977 983 534 471 490 48.2 495 Q3’17 Q3’18 Q3’17 Q3’18 Q3’17 Q3’18 Q3’17 Q3’18 • Cable business driven by growth in Internet • Internet net additions of 35k. Internet st
Slide 14: Q3 Media – Financial results
Q3 Media – Financial results Adjusted Revenue - 5% EBITDA +20% ($M) ($M) 516 488 73 61 Q3’17 Q3’18 Q3’17 Q3’18 • Revenue decline primarily due to lower Toronto Blue Jays revenue offset by improved cost structure leading to adjusted EBITDA growth of 20% 14 | 2018 Q3 Results
Slide 15: Q3 Financial performance
Q3 Financial performance (In millions of $, except per share amounts and percentages) Q3’18 % Chg Q3 free cash flow increased 5% given higher adjusted EBITDA, partially offset by planned increase in capex Net income 594 17 driven by investments in our wireless and cable networks Adjusted net income
Slide 16: Enhancing financial flexibility
Enhancing financial flexibility Debt Leverage Ratio 2.5x 3.1x 3.0x Strong adjusted EBITDA contributed to cash provided by operating activities of $1.3 billion in the 2.7x third quarter of 2018 2.5x 2.5x - Entering the high-end of our optimal debt leverage 2.0x ratio range of 2.0x - 2.5x Investment-g
Slide 17: Progress on fundamentals leading to stronger 2018 guidance
Progress on fundamentals leading to stronger 2018 guidance Previous Updated 2018 Guidance1 2018 Guidance Revenue 3% - 5% growth no change Adjusted EBITDA 5% - 7% growth 7% - 9% growth Capital expenditures 2,650 to 2,850 no change Free cash flow 3% - 5% growth 5% - 7% growth (In millions of dollars,
Slide 18: Q&A
Q&A 18 | 2018 Q3 Results