TORONTO — In Canada, much like in the U.S., radio station ownership groups have been challenged by core advertising slowdowns. For Corus and Bell Media, which enjoys a partnership with iHeartMedia, quarterly challenges have made headlines. How did the third quarter of 2023 fare for North America’s most dominant multimedia ownership group?
Rogers Communications blew past analysts’ forecasts, with President/CEO Tony Staffieri “very pleased” to be sharing “industry-leading results” for Q3.
Total revenue for Rogers improved to $5.09 billion CDN, rising 36% from $3.743 billion CDN, as adjusted EBITDA increased to $2.41 billion CDN from $1.58 billion. Nine analysts had pegged revenue to finish $1 million CDN less for Rogers.
That helped Rogers achieve adjusted net income of $679 million CDN ($1.27), rising from $436 million CDN ($0.84). Thirteen analysts had forecast EPS of $1.11 CDN.
Free Cash Flow soared to $745 million CDN, from $279 million.
To be clear, Rogers’ growth is thanks to a myriad of businesses, including its 5G service. Following a well-publicized July 2022 service meltdown, Rogers’ business today is marked by reliability and service within Toronto’s TTC subway line. Then, there are the internet and TV services Rogers now offers in territories previously served by Shaw Communications, which Rogers successfully merged with despite a challenge from regulators in Ottawa.
But Radio also added to the revenue mix, with Staffieri noting how Adult Contemporary CHFI, Top 40 CKIS “Kiss 92.5,” and CFTR “CityNews 680” each scored big ratings finishes in the Numeris Summer 2023 survey for Toronto, the nation’s No. 1 market.
Media revenue for Rogers increased by 11% in Q3. This, the company shared, is primarily the result of higher sports-related revenue, including at the Toronto Blue Jays; Rogers owns the Major League Baseball club.
Trading as “RCI-B” on the TSX, Rogers shares were up 20 cents to $57.30 CDN as of 2:45pm Eastern.
