May 27, 2019
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Headline, Industry News

Rogers Comm. triples Q3 net to $154M

TORONTO (CP) _ Rogers Communications Inc. (TSX:RCI.B) is more than doubling its dividend and splitting its stock after third-quarter net income tripled, but Canada’s largest cable TV and cellphone operator has no intention of becoming a boring income stock.

"We’re certainly not going to start resting on our laurels, just collecting the cash without a strong commitment to investing to ensure that healthy harvests continue well into the future," chief executive officer Ted Rogers said Tuesday in commenting on the company’s biggest-ever quarter.

Operating revenue swelled 15 per cent to $2.35 billion, compared with $2.05 billion a year earlier, with all the increase coming from internal growth rather than acquisitions. Operating profit grew 33 per cent to $784.3 million, and net income increased to $154 million, 48 cents per share, from $48.9 million, 16 cents per share.

"We’re competing well with very powerful and heavily entrenched monopolies," Ted Rogers told congratulatory analysts on a conference call.

The board plans a two-for-one share split at year-end, and the dividend will become quarterly and rise to 32 cents per share annually from 15 cents on a pre-split basis. Splitting the stock will ease small-investor access and add liquidity for Rogers, whose widely held B shares jumped six per cent to a new high of $68.18 Tuesday, up from $47 a year ago and $10 four years ago.

The new dividend yield will still be only about half of one per cent. It is likely to rise further but "we’re always nervous about increasing it too much and having to retreat," Ted Rogers said.

The company remains growth-oriented and has almost $8 billion in long-term debt, after paying down debt by $309 million during the quarter, and "we are trying to get the right balance between the interests of the shareholders and the interests of the debtholders," the 73-year-old CEO and controlling shareholder added.

The company’s debt rating "will hopefully be within spitting distance of investment grade sometime in 2007," he said, but "we are in a fiercely competitive market and we have much hard work and continued investment in front of us."

Much of the new investment will be in telecom services for small and medium-sized business as Rogers diversifies away from being mostly residential.

In releasing the results, the company nudged up the high end of its full-year forecasts for revenue, operating profit and residential cable telephone subscriber additions.

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Headline, Industry News

Rogers Comm. triples Q3 net to $154M

TORONTO (CP) _ Rogers Communications Inc. (TSX:RCI.B) is more than doubling its dividend and splitting its stock after third-quarter net income tripled, but Canada’s largest cable TV and cellphone operator has no intention of becoming a boring income stock.

"We’re certainly not going to start resting on our laurels, just collecting the cash without a strong commitment to investing to ensure that healthy harvests continue well into the future," chief executive officer Ted Rogers said Tuesday in commenting on the company’s biggest-ever quarter.

Operating revenue swelled 15 per cent to $2.35 billion, compared with $2.05 billion a year earlier, with all the increase coming from internal growth rather than acquisitions. Operating profit grew 33 per cent to $784.3 million, and net income increased to $154 million, 48 cents per share, from $48.9 million, 16 cents per share.

"We’re competing well with very powerful and heavily entrenched monopolies," Ted Rogers told congratulatory analysts on a conference call.

The board plans a two-for-one share split at year-end, and the dividend will become quarterly and rise to 32 cents per share annually from 15 cents on a pre-split basis. Splitting the stock will ease small-investor access and add liquidity for Rogers, whose widely held B shares jumped six per cent to a new high of $68.18 Tuesday, up from $47 a year ago and $10 four years ago.

The new dividend yield will still be only about half of one per cent. It is likely to rise further but "we’re always nervous about increasing it too much and having to retreat," Ted Rogers said.

The company remains growth-oriented and has almost $8 billion in long-term debt, after paying down debt by $309 million during the quarter, and "we are trying to get the right balance between the interests of the shareholders and the interests of the debtholders," the 73-year-old CEO and controlling shareholder added.

The company’s debt rating "will hopefully be within spitting distance of investment grade sometime in 2007," he said, but "we are in a fiercely competitive market and we have much hard work and continued investment in front of us."

Much of the new investment will be in telecom services for small and medium-sized business as Rogers diversifies away from being mostly residential.

In releasing the results, the company nudged up the high end of its full-year forecasts for revenue, operating profit and residential cable telephone subscriber additions.

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You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Headline, Industry News

Rogers Comm. triples Q3 net to $154M

TORONTO (CP) _ Rogers Communications Inc. (TSX:RCI.B) is more than doubling its dividend and splitting its stock after third-quarter net income tripled, but Canada’s largest cable TV and cellphone operator has no intention of becoming a boring income stock.

"We’re certainly not going to start resting on our laurels, just collecting the cash without a strong commitment to investing to ensure that healthy harvests continue well into the future," chief executive officer Ted Rogers said Tuesday in commenting on the company’s biggest-ever quarter.

Operating revenue swelled 15 per cent to $2.35 billion, compared with $2.05 billion a year earlier, with all the increase coming from internal growth rather than acquisitions. Operating profit grew 33 per cent to $784.3 million, and net income increased to $154 million, 48 cents per share, from $48.9 million, 16 cents per share.

"We’re competing well with very powerful and heavily entrenched monopolies," Ted Rogers told congratulatory analysts on a conference call.

The board plans a two-for-one share split at year-end, and the dividend will become quarterly and rise to 32 cents per share annually from 15 cents on a pre-split basis. Splitting the stock will ease small-investor access and add liquidity for Rogers, whose widely held B shares jumped six per cent to a new high of $68.18 Tuesday, up from $47 a year ago and $10 four years ago.

The new dividend yield will still be only about half of one per cent. It is likely to rise further but "we’re always nervous about increasing it too much and having to retreat," Ted Rogers said.

The company remains growth-oriented and has almost $8 billion in long-term debt, after paying down debt by $309 million during the quarter, and "we are trying to get the right balance between the interests of the shareholders and the interests of the debtholders," the 73-year-old CEO and controlling shareholder added.

The company’s debt rating "will hopefully be within spitting distance of investment grade sometime in 2007," he said, but "we are in a fiercely competitive market and we have much hard work and continued investment in front of us."

Much of the new investment will be in telecom services for small and medium-sized business as Rogers diversifies away from being mostly residential.

In releasing the results, the company nudged up the high end of its full-year forecasts for revenue, operating profit and residential cable telephone subscriber additions.

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You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

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