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$430
million under its C$1.5 billion share buyback program and paid dividends totaling C$177
million 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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