18 slides from Rogers Communications Inc. Class A's earnings presentation, Jul 19, 2018
Slide 1: Q2 2018 Results
Q2 2018 Results July 19, 2018 1|
Slide 2: Cautionary note
Cautionary note The following materials are for presentation purposes only. They accompany the discussions held during Rogers’ investor conference call on July 19, 2018. These materials should be read in conjunction with the disclosure documents referenced below. Certain statements made in this pres
Slide 3: Strong results reflecting solid momentum
Strong results reflecting solid momentum Consolidated Total Adjusted revenue +4% EBITDA +8% ($M) ($M) 3,620 3,756 1,389 1,504 Q2’17 Q2’18 Q2’17 Q2’18 • Total revenue growth of 4% and adjusted EBITDA growth of 8% • Strength of Wireless and Cable business units underpinning performance 3| 2018 Q2 Resu
Slide 4: Delivered strong Wireless results
Delivered strong Wireless results Postpaid gross adds increased Postpaid net adds increased Postpaid churn improved by +23k or +6% +29k or +31% 4 bps (000s) (000s) (%) 389 122 366 93 1.05 1.01 Q2’17 Q2’18 Q2’17 Q2’18 Q2’17 Q2’18 • Postpaid net additions of 122k - highest Q2 postpaid net additions in
Slide 5: Solid Internet performance driving Cable
Solid Internet performance driving Cable Total Service Units net adds Internet net adds Internet penetration1 +27k +10k +140 bps (000s) (000s) (%) 17 23 54.6 13 53.2 (10) Q2’17 Q2’18 Q2’17 Q2’18 Q2’17 Q2’18 • Ability to offer Ignite Gigabit Internet speed over entire cable footprint continues to be o
Slide 6: Cost efficiency in Media driving margin growth
Cost efficiency in Media driving margin growth Adjusted Adjusted Revenue - 5% EBITDA +2% EBITDA Margin +0.6 pts ($M) ($M) (%) 637 608 59 60 9.9 9.3 Q2’17 Q2’18 Q2’17 Q2’18 Q2’17 Q2’18 • Improved cost structure driving margin expansion and offsetting revenue decline • Focused on driving growth with live
Slide 7: Moving forward on 5G
Moving forward on 5G Partnered with Testing new set Signing key strategic Ericsson to further of global 5G agreements for small densify network standards cell deployment 7| 2018 Q2 Results
Slide 8: Winning formula
Winning formula World-class Internet service IPTV Service • Download speeds of up to • Ongoing strategic rollout of 1 gigabit per second available Ignite TV – offered to across entire footprint employees and select customers • Success-based investment future-proofed with DOCSIS • Innovative, robust C
Slide 9: Relentless focus on the customer
Relentless focus on the customer BEST postpaid churn in 9 years Reduction in customer calls Continued uptick in digital adoption 99| | 2018 Q2 Results
Slide 10: Financial performance
Financial performance 10 | 2018 Q2 Results
Slide 11: Q2 key financial performance
Q2 key financial performance Q2’18 %Chg Total revenue 3,756 4 Wireless 2,214 7 Q2 continued strong service revenue Cable 991 2 growth; margin expansion reflects solid Media 608 (5) progress on target Total service revenue 3,300 2 Wireless 1,761 5 2018 margin expansion goal of Adjusted EBITDA 1,504 8
Slide 12: Q2 Wireless – Financial results
Q2 Wireless – Financial results Service Adjusted Blended Blended Revenue +7% revenue +5% EBITDA +12% ABPU +4% ARPU +3% ($M) ($M) ($M) ($) ($) 2,214 1,761 1,029 64.80 55.60 2,076 1,680 915 62.13 54.21 Q2’17 Q2’18 Q2’17 Q2’18 Q2’17 Q2’18 Q2’17 Q2’18 Q2’17 Q2’18 • Service revenue growth reflects solid
Slide 13: Q2 Cable – Financial results
Q2 Cable – Financial results Internet Adjusted Adj. EBITDA Revenue +2% revenue +10% EBITDA +2% margin 0 bps ($M) ($M) ($M) (%) 976 991 538 455 462 46.6 46.6 490 Q2’17 Q2’18 Q2’17 Q2’18 Q2’17 Q2’18 Q2’17 Q2’18 • Cable business driven by growth in Internet • Internet revenue growth led by demand for s
Slide 14: Q2 Media – Financial results
Q2 Media – Financial results Adjusted Revenue - 5% EBITDA +2% ($M) ($M) 637 608 60 59 Q2’17 Q2’18 Q2’17 Q2’18 • Revenue decline due to the Toronto Blue Jays offset by improved cost structure leading to Adjusted EBITDA growth of 2% 14 | 2018 Q2 Results
Slide 15: Q2 Financial performance
Q2 Financial performance Q2’18 % Chg Q2’18 capex change elevated due to divestiture offset Net income 538 2 in Q2’17. Excluding divestiture, Free Cash Flow would have increased 5% Adjusted net income 554 12 Q2 Wireless capex related to preparation of network Adjusted basic EPS 1.08 13 for 5G Capital
Slide 16: Enhancing financial flexibility
Enhancing financial flexibility Strong adjusted EBITDA contributed to cash provided Debt Leverage by operating activities of $1.05 billion in Q2 Ratio 2.6 3.0 Continue to focus on meaningful progress towards our optimal debt leverage ratio range of 2.0-2.5 2.6 Q2’17 Q2'18 Investment-grade balance sh
Slide 17: Strong first half towards achieving 2018 guidance
Strong first half towards achieving 2018 guidance 2017 2018 Guidance Revenue 14,369 3% - 5% growth Adjusted EBITDA 5,502 5% - 7% growth Capital expenditures 2,436 2,650 to 2,850 Free cash flow 1,685 3% - 5% growth (In millions of dollars, except percentages) Focused on driving sustainable growth in
Slide 18: Q&A
Q&A 18 | 2018 Q2 Results