Rogers Communications Inc. (NYSE:RCI) Reports its Third Quarter Results

2014’s third quarter results for Rogers Communications Inc. (NYSE:RCI) had both ups and down. Net income slumped as compared to last year and the company also missed out on estimates for its EPS.

Rogers Communications Inc. (NYSE:RCI) third quarter’s net income went down to $305.2 million (64 cents/share), which was at 90 cents/share or $446.5 million in last year’s third quarter. Estimates for Rogers Communications Inc. (NYSE:RCI) adjusted EPS were 82 cents, which the company missed and recorded adjusted EPS at 68 cents.

Rogers Communications Inc. (NYSE:RCI) however beat estimates for its total revenue for the quarter with $2,896 million, which is a jump up by 0.9% on a year-over-year basis; according to estimates the revenue should have been $2,836 million. The main reason for this success was growth in revenue in the company’s business and wireless solutions.

Rogers Communications Inc. (NYSE:RCI) recorded a $1,206 million adjusted profit for operations, which was a slump by 2.2% on a year-over-year basis. Operating margin for the quarter was recorded at 40.3%, which was 41.6% in last year’s third quarter.

Rogers Communications Inc. (NYSE:RCI) was up by 0.5% on a year-over-year basis in generating cash, which was reported to be $971.6 million for the third quarter.

Total accumulated cash and its cash equivalents at the end of Rogers Communications Inc. (NYSE:RCI)’s third quarter was reported to be $95.6 million. This was a major disappointment for the company because this number was up at $2,115.1 million by the end of 2013. Outstanding debt for Rogers Communications Inc. (NYSE:RCI) was recorded at $12,512.2 million.

Rogers Communications Inc. (NYSE:RCI)’s wireless segments had some good highlights in its third quarter and its total revenue was recorded to be $1,728.1 million, which is a jump up by 1.8% on a year-over-year basis. Revenue generated through network stood at $1,592.1 million, which an improvement by 0.3% on a year-over-year basis.

Wireless segment’s total adjusted profit for operations for its third quarter was up by 1.5% on a year-over-year basis and was recorded to be $816.2 million. This surge was the result of around 614,000 smartphones that were activated by the wireless segment in the company’s third quarter. The company’s per user average revenue was $56 – a jump up by 0.2% on a year-over-year.

Wireless Segment Highlights for the Third Quarter

8.131 million mark was hit by postpaid (retail) subscribers for the company – a jump up by 1.1% on a year-over-year basis.
77% of the total postpaid subscribers were smartphone customers – a record high for the company.
Postpaid per user average revenue went down by 0.7% on a year-over-year basis and was recorded to be $62.8.
1.366 million mark was hit by prepaid subscribers, which went down by 6.3% as compared to last year’s third quarter.

Third Quarter Highlights of the Cable Segment

Quarterly total revenue came in at $794.2 million revenue for the quarter was reported – down by 1% on a year-over-year.
$398 million revenue for operations was generated in the third quarter – down by 4.2% as compared to last year’s same quarter.
5.8% jump up on a year-over-year basis in internet revenues, which were recorded to be $285.9 million.
$376 million total adjusted revenue through operation for the quarter was reported for the Cable Segment’s third quarter – down by 3.8% on a year-over-year basis.

Rogers Communications Inc. (NYSE:RCI) forecasts operating adjusted revenue to be between $4,838.5 and $4,983.7 million for 2014.