Rogers Communications Q4 2024: Churn Challenges and Mixed Signals on Growth Strategy

These are the key contradictions discussed in Rogers Communications Inc.'s latest 2024Q4 earnings call, specifically including: Churn Expectations and the Impact on Revenue Growth, Fixed Wireless Access Strategy, and Revenue Growth Expectations:



Strong Financial Performance and Market Leadership:
- Rogers Communications reported wireless service revenue up 2%, adjusted EBITDA growth of 6%, and added 95,000 net postpaid and prepaid phone subscribers in Q4 2024.
- The company led the industry in wireless subscriptions by attracting 623,000 wireless and Internet net additions.
- The growth was driven by disciplined market execution, maintaining a strong margin profile, and improving postpaid mobile phone churn.

Cable Revenue Recovery:
- Rogers' cable segment returned to slight year-over-year growth in Q4 2024, with Internet net additions up 30% year-on-year.
- The company delivered record margins of 59% in cable by focusing on disciplined pricing and loading strategy.
- The recovery was due to strong customer retention, operational efficiencies, and leveraging Canada's most reliable Internet.

Investment in Network and Innovation:
- Rogers invested significantly in its network, including achieving Canada's most reliable networks and introducing advanced technologies like DOCSIS 4.0.
- The company was awarded Canada's most reliable 5G network and completed a trial for 5G network slicing.
- These investments were aimed at maintaining network leadership and enhancing service quality.

Transaction and Strategic Investments:
- Rogers announced an agreement to purchase Bell's 37.5% stake in Maple Leaf Sports and Entertainment, aiming to own a majority 75% stake.
- The company is also exploring a minority stake sale in its wireless backhaul infrastructure, expected to raise $7 billion.
- These transactions are part of Rogers' long-term growth strategy to enhance sports and media assets and deleverage its balance sheet.