22 slides from Rogers Communications Inc. Class A's earnings presentation, Jan 24, 2019
Slide 1: January 24, 2019
January 24, 2019 1|
Slide 2: Forward-looking statements and non-GAAP measures
The following materials are for presentation purposes only. They accompany the discussions held during Rogers Communications Inc.’s (Rogers) investor conference call on January 24, 2019. These materials should be read in conjunction with the disclosure documents referenced below. Certain statements
Slide 3: Delivered another strong quarter in Q4
Delivered another strong quarter in O4 Consolidated +6% +6% Total revenue Adjusted EBITDA (SM) (SM) 1,521 3,731 1,436 0417 0418 0417 0418 3| 2018 Q4 Results
Slide 4: Executing on Wireless fundamentals
Executing on Wireless fundamentals -25 bps +2% 112k Postpaid churn Blended ARPU Postpaid net adds (%) ($) (000s) 55.91 112 148 54.95 72 1.23 0417 0418 Q417 0418 0417 0418 + Best O4 postpaid net adds and lowest O4 postpaid churn in nearly a decade 4| 2018 Q4 Results
Slide 5: Cable internet penetration
• • 1. Internet penetration calculated as Internet subscribers divided by homes passed 5| 2018 Q4 Results
Slide 6: Focusing Media on sports and local content
Focusing Media on sports and local content +3% +8% Revenue Adjusted EBITDA 540 40 526 37 Q4'17 04'18 0417 0418 6| 2018 Q4 Results
Slide 7: Excellent 2018 performance
Excellent 2018 performance + Continued strong growth in revenue, adjusted EBITDA, margins and free cash flow + Delivered strong short-term results while making strategic long-term investments Consolidated +5% +9% +130 bps +5% Total revenue Adj. EBITDA Adj. EBITDA margin Free cash flow (SM) (sm) 1% (
Slide 8: Best years
BEST 9 years Reduced digital adoption 88| | 2018 Q4 Results
Slide 9: 5G leadership in Canada
5G leadership in Canada Working with Ericsson to bring Canadians the very best 5G has to offer Strategic partnership with UBC to build and test a real-world 5G hub ARIES oes PA SS 3 Nis a th es eat i!
Slide 10: Cable network and Ignite TV rollout
Download speeds of up to 1 gigabit per second available across entire cable footprint Success-based investment future-proofed with DOCSIS technology Netflix + YouTube Voice integration command 10| 2018 Q4 Results Strategic rollout of Ignite TV - available to entire Ontario cable footprint Innovative
Slide 11: Building a formidable, high performance culture
Building a formidable, high performance culture 11] 2018 Q4 Results Recognized as one of Canada’s (i ie) Achieved best-in-class employee engagement score of
Slide 12: Momentum in 2019
Momentum in 2019 2019 outlook reflects continued expected growth Focused on growing the fundamentals - sustainable growth in revenue, margins and free cash flow Healthy macroeconomic conditions in the markets we serve Consumer and business demand for data continues to grow
Slide 13: Create best-in-class customer experience by putting our customers first
Create best-in-class customer Invest in our networks and Deliver innovative solutions experience by putting our technology to deliver leading and compelling content that customers first in everything we do performance and reliability our customers will love Drive profitable growth in all Develop our
Slide 14: 2018 Q4 Results
14 | 2018 Q4 Results
Slide 15: Q4 consolidated results
Q4 consolidated results +6% +6% +10 bps Total revenue Adjusted EBITDA Adj. EBITDA margin ($M) ($M) (%) 3,938 3,731 S221 - 1,436 38.5 417 0418 Q417 0418 417 0418 + Q4 and full-year 2018 continued strong revenue and adjusted EBITDA growth + Solid traction on cost reduction. Overachieved goal of 100-20
Slide 16: Q4 Wireless results
O4 Wireless results +3% Blended ABPU +5% +7% 42% Service revenue Adjusted EBITDA Blended ARPU ($M) (SM) ($) 55.91 i4 ‘B 54.95 0417 0418 0417 0418 Q417 04'18 + Strong revenue and adjusted EBITDA growth delivered in the fourth quarter ($) 65.12 63.46 Q4'17 0418 + Achieved 2018 goal of blended ARPU gro
Slide 17: Q4 Cable results
O4 Cable results 41% +3% +6% +80 bps Revenue Adjusted EBITDA Internet revenue Adj. EBITDA margin ($M) ($M) ($M) ) { (%) 489 536 49.4 981 477 508 48.6 Q4'17 04'18 0417 04'18 Q4'17 04'18 Q4'17 0418 + Internet continues to be the growth driver and remains an anchor for our Cable business + Adjusted EBI
Slide 18: Q4 Media results
O4 Media results +3% +8% Revenue Adjusted EBITDA ($M) ($M) 40 526 37 0417 04'18 0417 0418 + Revenue growth as a result of higher advertising and sports-related revenue + Adjusted EBITDA growth driven by our continued focus on cost efficiencies 18| 2018 Q4 Results
Slide 19: Net income, adjusted net income, adjusted diluted EPS
Q4’18 %Chg 2018 %Chg Net income 502 1 2,059 12 Adjusted net income 585 11 2,241 18 Adjusted diluted EPS $1.13 11 $4.34 18 Capital expenditures, net 828 (2) 2,790 15 Capital intensity 21.0% (1.5 pts) 18.5% 1.5 pts Free cash flow 275 20 1,771 5 In millions of dollars, except percentages and per share
Slide 20: Optimal Range
Optimal Range 1. As reported prior to the adoption of IFRS 15 20 | 2018 Q4 Results
Slide 21: 2018 Results and 2019 Guidance
2018 Results 2019 Guidance 1 1. Effective January 1, 2019, we will amend our definition of free cash flow. Free cash flow presented above reflects this change. For further information, please see “2019 Outlook” in our Fourth Quarter 2018 Press Release 21 | 2018 Q4 Results
Slide 22: 2018 Q4 Results
22 | 2018 Q4 Results