Rogers Communications (TSE: RCI-B, NYSE: RCI) reported their Q4 2019 earnings this morning and results were unimpressive, missing estimates and showing no growth and shrinking profits.
The Canadian telecommunications giant turned in revenues of $3.952 billion for the quarter compared to analyst estimates of $3.971 billion CAD. Revenue growth for the quarter was basically unchanged compared to the same quarter last year.
Rogers’ revenues are primarily driven by their wireless business which accounted for 63% of sales in Q4 and saw growth of 1% compared to the same quarter last year. With limited competition in the Canadian wireless market, primarily from rivals Bell (TSE: BCE; NYSE: BCE) and Telus (TSE: T, NYSE: TU) Rogers results were disappointing.
The company’s cable business sales, which accounts for its internet, TV and phone services, reported $987 million in sales over the quarter, slightly less than the same quarter last year. In particular, TV and phone services are continuing to face challenges as more consumers ditch landlines in favour of cell phones and cut the cord on cable TV.
Rogers’ media business made up 13% of revenues this past quarter and sales also slowed by 2% compared to last year.
Rogers reported EBITDA for the quarter of $1.53 billion compared just barely missing estimates of $1.537 billion. EBITDA shrinkage in media significantly drove the overall result decreasing 45% over the same quarter last year.
The company’s overall earnings came in at $1.00 per share compared to analyst estimates of $1.03 per share, a miss of 3%.
Rogers stock has not had a good run of late. The telecom stock ended 2019 flat compared to the start of the year and thus far in 2020 has also remained fairly stable. While the company does pay a 3% dividend, the performance leaves much to be desired compared to its peers.