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dated: 2022-11-19 21:43:02 .
TORONTO – Rogers Communications Inc. mentioned on Wednesday that the impact on the company from the community shutdown in July was “very distant” as it reported that its third-quarter revenue fell compared to a year ago, while revenue rose even more.
The telecommunications and media company mentioned that it recouped approximately $150 million within the quarter due to outages and promised prospective buyers a 5-day credit.
You’re reading: Rogers says July blackout impact on business ‘very isolated’
Rogers said it earned $371 million, or 71 cents per diluted share, in internet earnings for the quarter ended Sept. 30, down from $490 million, or 94 cents per diluted share, in the identical quarter last year.
The lower was primarily as a result of credits related to the community outage and better financial prices attributable to the funding of layoffs of Shaw’s senior employees, the company mentioned.
Meanwhile, revenue for the quarter totaled $3.74 billion, up two percent from $3.67 billion in Q3 2021.
Rogers mentioned that excluding the impact of the loan that gave the outlook as a result of the work stoppage, its total income would have increased by six percent compared to the year in the past.
On an adjusted basis, Rogers mentioned that it earned 84 cents per diluted share, down from adjusted income of $1.03 per diluted share in the identical quarter last year.
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Analysts at Common had forecast earnings of 86 cents a share and nearly $3.73 billion in revenue, according to estimates compiled by monetary markets knowledge agency Refinitiv.
Among the outage results within the quarter was compensated by a robust Wi-Fi setup. Rogers noted that there was an increase of 221,000 mobile phones in the third quarter, an increase of 30,000 from last year.
Regarding the corporation’s name with analysts, Rogers Chief Executive Officer Tony Staffieri mentioned that he didn’t see anything particularly “alarming or worrisome” about the churn — a closely watched indicator of customers moving to different companies — that would be immediately linked to the July outage.
Staffieri mentioned that the company will continue to invest money in its networks and customer expertise.
Rogers reported capital expenditures of $872 million during the quarter, an 18 percent increase, along with a 52 percent improvement in community funding compared to last year.
Rogers further confirmed its full-year management ranges for 2022.
In a note to buyers, Desjardins analyst Jerome Dubreuil mentioned that Rogers’ repeat management of 2022 was “encouraging.”
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Looking forward, Rogers mentioned that he remains “committed” to acquiring Shaw.
The proposed $26 billion deal is currently ahead of the Competition Tribunal as the Competition Bureau seeks to block it entirely. Rogers hopes to close the deal by the end of the year, with a possible additional extension until Jan. 31. 2023.
Amid rising interest rates and ongoing inflationary pressures, Rogers mentioned that he is aware of the impact on people’s pocketbooks, but will not feel it internally to a “material extent.”
The company mentioned that it is confident in its staff, its stability and networks as it navigates the current macroeconomic environment.
This report by The Canadian Press was first published on November 9, 2022.
Corporations in this story: (TSX:RCI.B, TSX:SJR.B)
Rogers says business impact of July outage ‘very isolated’
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