RCI Earnings Prediction
The chart below shows how RCI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RCI sees a -1.27% change in stock price 10 days leading up to the earnings, and a -0.19% change 10 days following the report. On the earnings day itself, the stock moves by +0.03%. This data can give you a slight idea of what to expect for the next quarter's release.
RCI Key Earning Data
RCI Earnings Analysis
Positive
Customer Growth Milestone: 1. Record Customer Additions: Rogers added a record 227,000 mobile phone and Internet net additions in Q3 2024, contributing to a total of 1.9 million net additions over the past 11 quarters.
Record Wireless EBITDA Margins: 2. Strong Wireless Margins: The company achieved wireless adjusted EBITDA margins of 66%, marking a 220 basis point increase year-over-year and setting a new all-time high.
Sports & Media Revenue Surge: 3. Significant Revenue Growth in Sports & Media: The Sports & Media segment reported an 11% increase in revenue and a 25% rise in adjusted EBITDA for the quarter, driven by strong performance from the Toronto Blue Jays and NHL on Sportsnet.
Cable EBITDA Growth: 4. Improved Cable Performance: Cable adjusted EBITDA increased by 5% year-over-year, with cable margins reaching an all-time high of 58%, up 330 basis points from the previous year.
Free Cash Flow Increase: 5. Free Cash Flow Growth: Rogers generated free cash flow of $915 million in Q3 2024, reflecting a 23% increase from the prior year, primarily due to higher adjusted EBITDA and lower interest expenses.
Negative
Cable Revenue Decline: 1. Declining Cable Revenue: Cable revenue decreased by 1% year-over-year, indicating ongoing challenges in the segment despite efforts to return to growth.
Debt Leverage Concerns: 2. High Debt Leverage Ratio: The company ended the quarter with a debt leverage ratio of 4.6x, which is still significantly above the target of 3.7x, highlighting ongoing debt concerns.
Customer Retention Challenges: 3. Increased Churn Rates: Postpaid mobile phone churn remained unchanged at 1.12%, indicating potential customer retention issues in a competitive market.
Wireless Revenue Slowdown: 4. Pressure on Wireless Revenue Growth: Wireless service revenue growth was only 2% year-over-year, suggesting a slowdown in revenue expansion amid competitive pressures.
Regulatory Impact on Growth: 5. Impact of Regulatory Changes: The government’s new immigration policies have led to a 40% year-on-year decline in foreign student additions, which could negatively impact future customer growth.
RCI FAQs
How does RCI typically perform around its earnings report dates?
RCI's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -1.27% change leading up to the report and a -0.19% change in the 10 days following the release.
Is Rogers Communications, Inc. (RCI) Q3 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
RCI Earning Call Sentiment
Rogers Communications, Inc. (RCI) Q3 2024 Earnings Call Transcript
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