2020 results€¦ · the following materials are for presentation purposes only. they accompany the...
TRANSCRIPT
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1 | Q1 2020 Results
Q1 2020 ResultsApril 22, 2020
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2 | Q1 2020 Results
Cautionary note
The following materials are for presentation purposes only. They accompany the discussions held during Rogers Communications Inc.’s (Rogers) investor conference call on
April 22, 2020. These materials should be read in conjunction with the disclosure documents referenced below.
Certain statements made in this presentation, including, but not limited to, statements relating to expected future events, financial and operating results, guidance,
objectives, plans, strategic priorities and other statements that are not historical facts, are forward-looking. By their nature, forward-looking statements require Rogers’
management to make assumptions and predictions and are subject to inherent risks and uncertainties, thus there is risk that the forward-looking statements will not prove to
be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future results and events to differ
materially from that expressed in the forward-looking statements. Accordingly, our comments are subject to the disclaimer and qualified by the assumptions and risk factors
referred to in Rogers’ 2019 Annual Report and Rogers’ First Quarter 2020 MD&A (which was issued on April 22, 2020), as filed with securities regulators at sedar.com and
sec.gov, and also available at investors.rogers.com. The forward-looking statements made in this presentation and discussion describe our expectations as of today and,
accordingly, are subject to change going forward. Except as required by law, Rogers disclaims any intention or obligation to update or revise forward-looking statements.
This presentation includes non-GAAP measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted diluted EPS, adjusted net debt, debt
leverage ratio (adjusted net debt / 12-months trailing adjusted EBITDA), and free cash flow. Descriptions of these measures and why they are used can be found in the
disclosure documents referenced above.
This presentation discusses certain key performance indicators used by Rogers, including total service revenue (total revenue excluding equipment revenue in Wireless and
Cable), subscriber counts, ARPA and blended ARPU. Descriptions of these indicators can be found in the disclosure documents referenced above.
TM Trademarks of or used under license from Rogers Communications Inc. or an affiliate. All other trademarks are the property of their respective owners. ©2020 Rogers
Communications.
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5 | Q1 2020 Results
Q1’20 free cash flow of $462 million, up 14% year over year
Investment-grade balance sheet remains healthy with a solid liquidity position of
$3.8 billion
Strong financial position in COVID-19 environment
Debt leverage ratio of 2.7x
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6 | Q1 2020 Results
Gross postpaid adds decreased 13% due to COVID-19
Q1'20
($M)
Q1'19
-2%
Q1 Wireless results
1,7121,747
Q1'20
($M)
Q1'19
+1%
1,0261,015
Q1'20
(%)
Q1'19
+300 bps
49.446.4
Q1'20
($)
Q1'19
-2%
52.8554.13
Servicerevenue
Adjusted EBITDA
Adj. EBITDA margin
BlendedARPU
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7 | Q1 2020 Results
Internet net adds of 17k
Q1'20
($M)
Q1'19
Revenue
0%
Q1 Cable results
973976
Q1'20
($M)
Q1'19
Adjusted EBITDA
+2%
453445
Q1'20
(%)
Q1'19
Adj. EBITDA margin
+100 bps
46.645.6
Q1'20
($M)
Q1'19
ARPA
-1%
128.91130.51
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8 | Q1 2020 Results
Q1 Media results
Q1'20
($M)
Q1'19
Revenue
-12%
412468 Q1'20
($M)
Q1'19
Adjusted
EBITDA
-1%
(85)(84)
Revenue loss from suspension of live sporting events
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9 | Q1 2020 Results
Total service revenue 3,049 (3)
Adjusted EBITDA 1,335 -
Adjusted EBITDA margin 39.1% 1.9 pts
Net income 352 (10)
Adjusted net income 367 (9)
Adjusted diluted EPS $0.71 (9)
Capital expenditures 593 (4)
Capital intensity 17.4% 0.2 pts
Free cash flow 462 14
In millions of dollars, except percentages and per share amounts
Q1'20 %Chg Service revenue results reflect
reduced roaming revenue and strong
adoption of Rogers Infinite plans
Healthy free cash flow growth
driven by cost management
and capital efficiencies
Capital expenditure reduction
driven by prioritizing capital
investments to increase
network capacity
Q1 consolidated results
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10 | Q1 2020 Results
Suspending 2020 guidance given
the uncertainty of the duration and
impact of COVID-19 pandemic
Focus on maintaining strong cash
flow, liquidity and balance sheet
Outlook
For further information, please see the “Financial guidance” section of our First Quarter 2020 MD&A
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11 | Q1 2020 Results
April 22, 2020
Q1 2020 Results