Rogers posts 17% Q2 revenue drop on COVID-19 factors

23 Jul 2020

Canada’s Rogers Communications posted a 17% year-on-year drop in total revenue in the second quarter of 2020 to CAD3.155 billion (USD2.341 billion), largely driven by a 14% fall in Wireless revenue to CAD1.934 billion (with underlying 13%/17% decreases in Wireless service/equipment revenues) resulting from: lower roaming revenue due to global travel restrictions during the COVID-19 pandemic, lower mobile data usage as customers spent more time at home on Wi-Fi; decreases in certain fees, partially from waivers provided to customers amid the crisis; reduced sign-ups for both post-paid and pre-paid services with around 90% of Rogers stores temporarily closed due to COVID-19; and lower data overage revenue due to continued adoption of Rogers ‘Infinite unlimited’ data plans. Roger’s Media division saw an even sharper fall in sales, down 50% to CAD296 million mainly resulting from lower advertising revenue and lack of sports-related income. Cable division revenue was more resilient, declining by 3% y-o-y to CAD966 million in the three months to 30 June 2020, influenced by ongoing falls in legacy TV and home phone subscriber bases partially offset by growth in internet and new-generation ‘Ignite TV’ subscribers.

Consolidated adjusted EBITDA decreased 21% y-o-y in Q2 2020, primarily as a result of lower revenue and higher bad debt expense due to the national economic conditions, and quarterly net income fell 53% to CAD279 million.

Rogers’ CEO Joe Natale said: ‘As we expected, our second quarter results reflect the economic pressures we saw in our business as Canadians adapted to the challenges of COVID-19. As Canada’s business environment slowly improves, we will rely on our strong balance sheet, world-class networks, and leading market share position to support long-term growth … Our priorities in the second half of the year are to drive the competitive benefits and efficiencies from the customer-first and digital initiatives we have accelerated during the pandemic, and to resume growth across our businesses as more of the Canadian economy opens up.’

Canada, Rogers Communications