© Reuters. FILE PHOTO: The Rogers Building, the green-topped corporate campus of Canadian media conglomerate Rogers Communications is seen in downtown Toronto, Ontario, Canada July 9, 2022. REUTERS/Chris Helgren/File Photo
(Reuters) -Canada’s Rogers (NYSE:) Communications forecast strong annual free cash flow after topping estimates for quarterly wireless subscriber additions on Thursday, as a surge in immigration boosted demand for its wireless and internet services.
The company’s shares gained more than 2% in early trading.
Canada has been seeing a steady rise in immigration as it welcomes more people in a bid to grow its population and boost economy – increasing demand for Rogers’ plans aimed at newcomers.
The country targeted 465,000 new residents in 2023 and has a goal of 485,000 in 2024 and 500,000 in 2025 – a move that analysts have said will benefit the country’s big three carriers – Rogers, BCE (NYSE:) and Telus (NYSE:).
Rogers expects free cash flow of C$2.9 billion to C$3.1 billion ($2.31 billion) in 2024, above Visible Alpha estimates of C$2.83 billion. It also beat quarterly estimates for the metric.
Promotions during the holiday season and customers upgrading their phones after the release of the iPhone 15, along with Rogers’ robust 5G services have been resonating with Canadian subscribers.
The company added 184,000 net monthly bill-paying wireless phone subscribers in the fourth quarter, higher than analysts’ expectations for additions of 171,830.
During the quarter, pop icon Taylor Swift performed the “Eras” tour at the company’s Rogers Centre in Toronto, making her the first artist to perform six shows at the stadium.
Total revenue for the quarter stood at C$5.34 billion ($3.97 billion), higher than estimates of C$5.29 billion, per LSEG data. Adjusted profit of C$1.19 also beat estimates.
Media revenue at the Toronto Blue Jays owner fell 8% as a result of lower sports-related revenue.
($1 = 1.3448 Canadian dollars)
