Rogers posts 4% Q1 revenue increase; reportedly favours Xplornet bid for Shaw mobile assets

21 Apr 2022

Canada’s Rogers Communications reported ‘solid operational improvements’ in its Wireless (mobile), Cable (fixed internet/pay-TV/voice) and Media divisions in Q1 2022. Total revenue improved 4% year-on-year to CAD3.619 billion (USD2.871 billion) in the three months ended 31 March 2022. Group quarterly EBITDA rose 11% y-o-y to CAD1.539 billion, with net income rising 9% y-o-y to CAD392 million.

Rogers highlighted 7% y-o-y growth in both mobile service revenue and mobile EBITDA in January-March 2022, with post-paid mobile phone subscription net additions of 66,000, up 44,000 from 1Q21, and a 3% y-o-y improvement in mobile phone subscription ARPU. Cable division revenue climbed 2% and Cable EBITDA increased by 13%.

As Rogers prepares to close its proposed merger with Shaw Communications, it echoed the latter’s statement in saying that the transaction ‘remains on track to close in Q2 2022’. According to confidential sources cited by the Globe & Mail, Rogers has reportedly presented the federal government with an offer from Xplornet to acquire Shaw’s Freedom Mobile division, to gain regulatory clearance for the merger. Xplornet – Canada’s largest specialist rural broadband provider, backed by US-based private equity firm Stonepeak Infrastructure Partners – was previously reported to be among several potential buyers, and according to the newspaper the bid now rests on Ottawa’s approval to see Xplornet become the country’s fourth largest mobile provider.