Communications and media company Rogers Communications Inc. (RCI,RCI-A.TO, RCI-B.TO) Wednesday reported a profit for the fourth quarter, compared to a loss last year, helped by higher revenues and lower expenses. Further, the company said its board of directors adopted a dividend policy that increases the annualized dividend rate by 10%.
The company reported fourth-quarter net income of C$310 million or C$0.51 per share, compared to a net loss of C$138 million or C$0.22 per share in the prior year. In the third quarter, the company' net income was C$485 million or C$0.79 per share.
The latest results included stock-based compensation expense, settlement of pension obligations, integration & restructuring expenses, impairment losses and an adjustment for CRTC Part II fees decision. In the previous year, stock-based compensation expense, integration & restructuring expenses and impairment losses.
Adjusted fourth-quarter net income soared to C$370 million or C$0.61 per share from C$164 million or C$0.26 per share in the prior year. On average, four analysts polled by Thomson Reuters expected the company to earn US$0.58 per share for the quarter. Analysts' estimates typically exclude special items.
Operating revenue for the quarter advanced to C$3.057 billion from C$2.941 billion reported for the same period last year. Analysts were looking for fourth-quarter revenues of US$3.04 billion. The company's third-quarter revenues were C$3.04 billion.
Operating income for the fourth quarter increased to C$607 million from C$137 million in the previous year. Operating profit climbed to C$1.049 billion from C$902 million and adjusted operating profit increased to C$1.101 billion from C$968 million.
In Wireless segment, revenues for the quarter rose to C$1.734 billion from C$1.655 billion in the previous year, fueled by data revenue growth of 45% and postpaid net subscriber additions of 109,000. the segment's adjusted operating profit increased to C$744 million from C$639 million.
In Post-paid, net additions declined 49,000 in the quarter. Average Revenue Per User or ARPU dropped to C$73.42 from C$74.83. Monthly churn declined to 1.08% from 1.12%.
In Pre-paid, net additions declined to 19,000 from 41,000 and ARPU grew to C$16.39 from C$15.91. Monthly churn slipped to 2.80% from 3.03%.
Cable revenues for the just concluded quarter grew to C$1.019 billion from last year's C$985 million and adjusted operating profit advanced to C$325 million from C$313 million in the prior year.
Media revenues in the latest quarter edged down to C$393 million from C$394 million reported last year, but adjusted operating profit rose to C$52 million from C$46 million in the prior year.
Operating expenses declined to C$2.450 billion from the previous year's C$2.804 billion, mainly due to impairment losses that declined to C$18 million from last year's C$294 million.
Among peers, BCE, Inc. (BCE, BCE.TO) recently said its fourth-quarter net earnings applicable to common shares were C$350 million or C$0.46 per share, compared to a net loss of C$48 million, or C$0.06 per share for the same period last year. Operating Revenues for the quarter rose to C$4.65 billion, from C$4.48 billion in the year ago quarter.
According to Nadir Mohamed, president and chief executive officer of Rogers Communications, "Against a tough economic backdrop, we delivered solid financial and operating results during the fourth quarter. Importantly, the results show a healthy balance of growth, cost control, improved churn and a double-digit increase in cash flow generation."
For the full year, Rogers' net income rose to C$1.478 billion or C$2.38 per share from C$1.002 billion or C$1.57 per share in the prior year. Operating revenue grew to C$11.731 billion from last year's C$11.335 billion. Analysts were looking for full-year earnings of US$2.53 per share on revenues of US$11.71 billion.
In the fourth quarter, the company repurchased 13.4 million of its Class B Non-Voting shares for C$430million under its C$1.5 billion share buyback program and paid dividends totaling C$177million on its common shares.
In another statement, Rogers said the Toronto Stock Exchange accepted a notice filed by the company of its intention to renew its prior normal course issuer bid, or NCIB, for its Class B Non-Voting shares for a further one-year period. Between February 22, 2010 and February 21, 2011, the company may purchase the lesser of 43.6 million Class B shares, representing about 9.08% of the issued and outstanding Class B shares. The shares can be purchased under the NCIB for an aggregate purchase price of $1.5 billion.
Further, the company said its Board of Directors adopted a dividend policy that increases the annualized dividend rate by 10% from C$1.16 to C$1.28 per Class A Voting and Class B Non-Voting share, effective immediately. The dividend is to be paid in quarterly amounts of C$0.32 per share.
Rogers today declared a quarterly dividend totaling C$0.32 per share, to be paid on April 1, to shareholders of record on March 5. The company noted that this is the first quarterly dividend to reflect the newly increased C$1.28 per share annual dividend level.
Looking ahead, the company expects adjusted operating profit in 2010 to grow 2%-7% from 2009. Wireless network revenue and Cable revenue are estimated to increase 3%-6% from 2009, and Media revenue is expected to rise 4%-9% from 2009.
RCI close Tuesday's regular trade at US$33.01, up from the previous close of US$32.95, on 481,100 shares.
RCI-A.TO ended the regular trade Tuesday at C$35.02, lower than the prior close of C$35.10, on 2,300 shares.
RCI-B.TO settled Tuesday at C$34.52, compared to Friday's close of C$34.90, on 1.62 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.