Rogers earnings jump as Shaw-related costs fall, but revenue is flat as cable declines

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Rogers must now confront the challenge of reducing its nearly $44-billion debt load, much of that having been borrowed in recent years to finance the Shaw transaction

Rogers Communications Inc.’s second-quarter profit nearly quadrupled compared to 2023, the wireless giant reported Tuesday, as the company benefited from lower costs related to its $20-billion acquisition of Shaw Communications.

But those costs have fallen dramatically, from $188-million in the second quarter of 2023 to just $24-million one year later. Total restructuring and acquisition-related costs were $90-million during Rogers’ latest quarter, representing a 73 per cent decline from the same time last year. On an adjusted basis, Rogers reported second-quarter earnings of $623-million or $1.16 per diluted share, up from earnings of $544-million or $1.02 per diluted share.

While the company’s net debt has fallen slightly on a year-over-year basis, to $43.8-billion in the second quarter from $44.3-billion one year prior, its debt leverage ratio has fallen much faster thanks to rising operating income. Debt leverage ratios are a key indicator of a company’s ability to repay its lenders as they compare total debt to annual operating income.

Yet at least part of that plan hinges on selling $1-billion worth of real estate, including several of its Canadian data centres. Mr. Brandt said in April the process was taking longer than expected and he repeated that on Tuesday.in Cogeco Inc. and subsidiary Cogeco Communications Inc. to the Caisse de dépôt et placement du Québec last December for $829-million, which Mr. Brandt said at least temporarily reduced the urgency for asset sales.

 

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