Canada’s largest multimedia company, owner of radio stations including flagship CHFI-FM in Toronto and an array of broadcast and cable brands including CityTV, SportsNet and CityNews, has released its third quarter earnings report for fiscal 2024. And, its earnings per share fell short of analysts’ estimates by some 14%.
For the three months ended September 30, Rogers Communications‘ consolidated revenue inched forward by 1% to $5.13 billion CDN, from $5.09 billion. At the same time, adjusted net income moved forward to $762 million CDN ($1.42 CDN per share), from $679 million CDN ($1.27). While that’s upward from one year ago, analysts expected more from the parent of Rogers Sports + Media.
Investors weren’t thrilled with the results, with Rogers’ stock on the NYSE slipping by 36 cents to $37.63 as of 11:15am Eastern as its Class B common stock trading on the TSX was down by 51 cents CDN to $52.15 CDN.
Rogers’ shares have been flat on a 52-week basis but are down by 16% year-to-date, and the Q3 2024 results led TD to lower its target price for “RCI-B” to $71 CDN.
In prepared comments, Rogers President/CEO Tony Staffieri focused his discussion on the company’s cable and wireless prowess. Yet, Media revenue increased by 11% to $653 million CDN, from $586 million CDN, in the third quarter primarily as a result of higher sports-related Loonies and Twonies, the company said. Media adjusted EBITDA increased by 25% during the quarter, to $134 million CDN from $107 million CDN.
There was no specific mention of Rogers’ broadcast radio or television units with the release of its latest earnings report.
