Rogers Communications Inc. added fewer wireless subscribers than anticipated in its fourth quarter, citing a competitive market and slowed immigration. The company reported 69,000 prepaid wireless subscribers, below analyst expectations. While postpaid churn improved slightly, Rogers attributed the lower subscriber growth to promotional pricing and a challenging environment. Despite this, Rogers saw a 2% increase in service revenue for the quarter, reaching $4.5 billion.
added fewer wireless subscribers than expected in its fourth quarter, amid a pricing battle with rivals.
Royal Bank of Canada analyst Drew McReynolds called it “a decent quarter for wireless in a lower loading environment” in a note to investors. It reiterated its goal to deleverage following its 2023 acquisition of Shaw. But the company has yet to close a $7-billion structured equity deal, the proceeds of which it has said it will use to pay down debt.
“This uncertainty, while possibly transitory, is weighting on the stock and until this is dealt with it will be difficult for the stock to pick up momentum,” said Scotiabank analyst Maher Yaghi in a note.
Technology WIRELESS SUBSCRIBERS ROGERS COMMUNICATIONS PRICING COMPETITION CHURN SERVICE REVENUE
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