18 slides from Rogers Communications Inc. Class A's earnings presentation, Jul 20, 2017
Slide 1: Q2 2017 Results
Q2 2017 Results 20 | 07 | 17
Slide 2: Cautionary note
Cautionary note Certain statements made in this presentation, including, but not limited to, statements relating to expected future events, financial and operating results, guidance, objectives, plans, strategic priorities and other statements that are not historical facts, are forward-looking. By t
Slide 3: Strong foundation for growth
Strong foundation for growth Strong growth Good Highly prospects in progress on committed and our core customer engaged team businesses churn
Slide 4: Investing for sustainable growth and shareholder returns
Investing for sustainable growth and shareholder returns Create best in class customer experience Invest in our networks for leading performance and reliability Deliver innovative and compelling content and solutions Drive growth in the key markets we serve – with a core focus on cost management 4
Slide 5: Q2 Highlights
Q2 Highlights • Strong total service revenue and adjusted operating profit (AOP) growth driven by continued • Delivered on all key financial, customer and operating metrics in Wireless momentum in Wireless • Robust Cable AOP growth and expanded margins • Acquired AWS-1 spectrum licence in key Toront
Slide 6: Wireless operating metrics
Wireless operating metrics • Postpaid ARPA growth supported by ($) 124.31 Postpaid continued adoption of higher value Share 116.06 ARPA • Blended ARPU growth of 3% Everything plans +7% Q2'16 Q2'17 (%) • Lowest postpaid churn rate since 2009 Churn 1.14 1.05 improved 9bps Q2'16 Q2'17 • 8th consecutive
Slide 7: Cable operating metrics
Cable operating metrics (000s) • Cable customer churn down year on year TSU net losses (6) (12) for 4th straight quarter -6k YoY Q2'16 Q2'17 (000s) • Highly competitive environment with Internet net adds 12 -1k 11 aggressive offers YoY Q2'16 Q2'17 • Ignite Gigabit Internet service available (%) 51%
Slide 8: Enhancing Cable offerings with X1 IPTV platform
Enhancing Cable offerings with X1 IPTV platform • Best-in-class next gen suite of residential services integrating choice for customers • Continuous stream of innovations and natural language voice search • State-of-the-art customer premise equipment 3 • Variable opex model and shifting capex to suc
Slide 9: Media focused on sports
Media focused on sports • Sports represents • #1 sports media brand more than half of in Canada for the second year in a Media revenue row1 • Exclusive national 12-year licensing >50% agreement • Owner of the Toronto Blue Jays • Sports • Broadcasting ,TSC and other baseball club Brands that resonate
Slide 10: Financial performance
Financial performance
Slide 11: Accelerated momentum in Wireless financials
Accelerated momentum in Wireless financials ($M) • Highest service revenue growth since Service revenue 1,788 1,925 2009 +8% Q2'16 Q2'17 • Strong flow through of top line growth to ($M) AOP 1.23 924 • Best growth rate since 2010 AOP +9% 846 Q2'16 Q2'17 (%) • Margin expansion on improved operating AO
Slide 12: Robust Cable AOP growth
Robust Cable AOP growth • Cable revenue supported by strong Internet ($M) Cable 870 870 • 1% Cable revenue growth excluding impact revenue growth revenue stable of lower wholesale revenue 1 Q2'16 Q2'17 • Internet revenue growth driven by subscriber ($M) growth and migration to higher speed and Inter
Slide 13: Cable margin expansion
Cable margin expansion (%) • Meaningful Cable AOP growth and AOP 49.2 47.7 margin substantial margin improvement +1.5pts Q2'16 Q2'17 • Higher margin Internet revenue represents (%) 46% 43 46 nearly half of total Cable revenue of Cable revenue is Internet Q2'16 Q2'17 13
Slide 14: Media revenue growth driven by sports
Media revenue growth driven by sports • Revenue growth primarily driven by Toronto Blue Jays and • AOP largely impacted by higher Toronto Blue Jays salaries higher NHL advertising revenue Sports (including higher US foreign exchange) and lower print revenue following our restructuring announced in l
Slide 15: Q2 financial performance
Q2 financial performance Q2’17 1 % Chg Total revenue 3,592 4 Continued revenue growth on Total service revenue 2 3,466 5 high quality mix of assets Wireless 1,925 8 Cable 869 - Business Solutions 94 (1) Media 637 4 Adjusted operating profit 1,410 5 Strong AOP growth driven by Wireless 924 9 healthy
Slide 16: Enhancing financial flexibility
Enhancing financial flexibility • Continue to focus on meaningful progress toward target debt leverage ratio of ≤2.5 • Held debt leverage ratio stable sequentially despite the acquisition of the AWS-1 • Strong investment-grade debt ratings with stable outlooks spectrum licence • $2.0 billion in avai
Slide 17: Maintaining strong growth outlook in 2017
Maintaining strong growth outlook in 2017 2016 Actuals 2017 Guidance Revenue 13,702 3% - 5% growth Adjusted operating profit 5,092 2% - 4% growth Capital expenditures 1 2,352 2,250 to 2,350 Free cash flow 1,705 2% - 4% growth (In millions of dollars, except percentages) • Building on momentum in Wir
Slide 18: Q&A
Q&A