RCI - Earnings call transcript Q3 2020 | Rogers Communications Inc.

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Operator

Thank you for standing by. This is the conference operator. Welcome to the Rogers Communications Third Quarter 2020 Results Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded.

Following the presentation, we will conduct a question-and-answer session. now Vice turn with President would to conference Rogers I Carpino, Paul of Instructions] like the to over Communications. [Operator Investor Relations ahead. go Please

Paul Carpino

Thanks, our Officer, Joe joining our you Fernandes. Chief with Arielle. Tony and and Natale; President Today Staffieri; Information Officer, and Jorge our Executive I'm here Technology Good for Chief and Financial everyone Chief morning, us. thank Officer,

actual want will earnings information begin I various over today's to could our include from and we With that it in discussion report and in that, cause our that remind differ. XXXX review Before turn Annual me today's Please to forward-looking Report Joe. factors, estimates other regarding and which our the let language the to assumptions actual results differ. results everyone could risks cautionary

Joe Natale

and good everyone. morning, Thanks, Paul,

start me additional provide minutes. and Let third our speaking about Tony by quarter a will results. insight few in detail briefly

will to covering long-term And and plays to Canada's our how I'll share operating role efficiency. XG we finally, Next, the update our XG driving customers discuss technology drive cities, the next continuing growth our now provider meet in of and both Canada's supporting largest [indiscernible]. generation are and and I business XXX as our rollout adapt needs

improvements First profitability growth, and our sequential results. solid our Rogers each customer delivered additions, revenue free in of performance across QX significant businesses flow. in with a cash

is economic and Q our during cable as our we've wireless growth resurfaced model. did we've As businesses. of company, term QX, our long results, demand the reflect operating media shutdown the prospects the or in rebounded after results our pivoted fundamentals growth This nor previously not which underlying of noted evident our

up environment declined postpaid our we've year. more stores we period same strategy XXX,XXX, show and and XX% reopened our additions last In market XX%. QX digital Our are long-term net the ramped delivered sales the than by strong In from results as wireless the overall QX, our managing of is sound. effectively capability

by sales a demand back-to-school and and net In plans. delivered digital XG prepaid our unlimited we consumer factors; addition shopping in of XX,XXX in active number growth growth driven period, our ready growth service capabilities pent was continued a up additions. This and

by customers. Our represents Unlimited the quarter and to by X.X XG. now grew pay base Rogers XXX,XXX overage in usage unlimited fees, customer free plans worry this Canada. Infinite This enjoy no million are largest far longer data positioned well for Customers

sequentially from and continues year. to QX the do X.X% grow line which legacy our double also in a strong basis Switching the ever year-over-year. COVID data Airbnb churn, and lows condo, was job at with dynamics, churn. cost revenue better our home and in Infinite despite as more than in to grew is cable came improved QX intensity managing we base a than XG better delivered points ARPU, lower Postpaid related good consumption Canada. market XX of anomalous with our value Our EBITDA has of churn of a lifetime in we QX, results the and serve or footprint business, like of far Despite last rental, of industry the building X% that Adjusted in solid and customers flat. in delays in the adjustments ARPU And gains. the create higher the and competitive lower exciting XG are new to our on certainly These foundation iconic arriving iPhones expectations expanding team devices quarter, plans.

provider growth QX, our and the reversal strong improvement nationally. in return in sports significant other Viewing represents as of even year-over-year notable above in large improvements Rogers audiences revenue EBITDA. in fastest all the up significant gains. network to during and large the categories. sequential a performance XX% the experienced testing, as report DOCSIS across with and We and a Media, internet business very Media with QX. to to the continue Canada underscores investments fibre were COVID-XX pleased this All This and Advertising consistent sports were in lockdown. this Switching QX. year that in week business with impact resilience viewing and advertising advertising numbers of most back Ookla, the media sports our of network a ago from gain strength speeds showing Earlier was sports the showed the recognized stronger the are four delivered major essential This recognition. depths best all leader material Media

the business want that I important both play and an in improvements Next future. to into efficiency growth highlight will recent role driving some

in As last and digital including accelerated changed capability, initiatives ever how stronger important than and Internet behaviors COVID-XX fast that plans. our and to planned, as greatly self we transformation change customer is business I care mentioned had rapidly. This fundamentally these enhanced home, launching and changes record install, few time. working expectations agents quarter, We tracked from operate name TV just more customer we a

nearly and of customers the cases industries, to contact is calls. we're pandemic. pay stores seeing support of the muscle it materially substantially In as of customer only well payments, ability transactions economics service This to is Today digital and we be years up of adoption month, service our a meet critical the such to and across agile adapt in digital as three same is improvement service is information. and self-serve on Our in that allow us our all resulting move reopened. multiple digital and to and forecasts. drive sales moved digital mix and bill the time, top-X be the dividends grow improvement. developing matter. Rogers. simple up nimble, even resulting digital in completed well channel bricks margin our our and matters to will pandemic continue This fewer is Canadian transactions, sales for how gains a channels volumes digitally. we many Building serve mortar beyond early online the shopping at and and retail. Digital [ph] service are digital period ahead Choice is needs At making Last days between changing healthy mix year-over-year

over last conversations the expect even and this our In continue continue Cable saving to our see months Ignite we with through customers Services. Assistant Rogers more technology, the install nearly conversations year capabilities XX sequentially. improvement jumped costs to X.X since more Virtual XXX% XX% calls Assistant to ongoing and handle of since launched Our AI now lowers We million advancements importantly excellent self over ago. With Virtual ongoing time. we deflect

enhanced install our our self installs XX% technicians Assistance support a Ignite installs option express installations agents app. When eliminating for growing our roll our our Together in equipment these makes via app, a Our customers QX. up represented off of drop courier do us, with through cable and our delivered our our support percentage entirely. installs, provide where self of our contactless Virtual technical call customers Assistance Virtual use also truck

and our issues of on truck digital We as drives of With rolls increases now service remain the processes. how year. customer experience enhanced capability appointment. an an service efficiencies their an save this needing XXX,XXX book our customers to as us the to save time approximately This well of XXX,XXX service hours is example without app the track and majority estimated our of solve overall

cost of efficiency to Investing management addition is priority. a success. growth critical investing our in In part long-term and opportunities, top for future and networks remains our

and speed, in enjoy our ever to [ph] customers begin XG best the across important generational of as consumer In scale This we investments importance transform technology over of in industries, will up data and increase biggest experience wireless as the future. XG testing we network traffic required businesses drive and is network over video ranks past Today, and tests, network fuel fact, to typical change to quality scale Rogers point Canadians the has the is stability country. engineered economic global Rogers decade. move and like [ph] tech years. in of of XXXX network benchmarking will network wireless the get the it XX more XG two leading capability. streaming testings a in is than how the recovery. years. call the a our reliability, awarded connect use and an It sectors, fundamentally and this in now network the reduce technology world. to download volt driven cases a has is best for and business $XX the immediate cost in Canada billion growth a cycle the innovation next To and time, support imperative last wireless performance set umlaut, upload

in innovation, the one and outcome. including long our Montreal Canada's we XXX expanded time the rollout to expected powered the largest and Vancouver is cities downtown since the better While XG levels. and half started not back city a energy use and also in partner, first have January full XG Atlantic towns Canada. Rogers Toronto, network current Ericsson. in is just to networks by environmental We Ottawa, supports operates first network be but

its ready capitalize reach with week, Rogers right Today, the iPhones, doubled our investments the XG bigger potential. times last of the Just infrastructure, we our to network of network. partners coinciding XG the right than be XG announcement XX Apple's is peers. and that we to announced fully on the requires XG

well We in regard. prepared are this

digital productivity. accomplishments dedication to team have our Ericsson, unlock our to since partner, partnerships their and medium businesses commitment tech University small rebound want incredible not and entire research, solutions great partnerships of commercialize British happened none without extend this thank just strategic to University work, across The effort Communitech. and our Columbia, startups incubate addition large strong the of pandemic. XG investments help of These networks team course, during in members. Canada, our to In And growth all critical for the the and start network and sized of demonstrated of Waterloo, COVID-XX. recover, have Canada none I the to to but these including to need to and from campuses unlock this of and quarter From are infrastructure they of they enterprises, could

and us as with we built in next service to will that has And at During we employee score our in improvement continuous Employee This the business culture be our our And our team and to Rogers. well innovation, recent reflected the of more where on capabilities. engagement. over lifetime, QX. I'll this that, has most Over Annual been XX% more in customers wireless and there turn not could Tony. it have been serve you provide some broadband and of complex also Tony, out details the prouder technology communities. in rolling of Survey, seen invest we been a achieved to I Engagement environment for generation our has

Tony Staffieri

and as reflected channels back and you, XX% stores cable, results million delivered morning playbook. from our or each as also the X% lockdown free both in revenues our strong we our through roaming our the digital of but connectivity ago. improvement of one Wireless Thank QX to good still and flow in needs. points, everyone. rolled slowly over solid service despite declined improvements out cash Joe sequentially, Consumers businesses COVID QX down from country year-on-year, numbers improved second year or in wireless $XX margin meet X healthy revenue In being efficiency to their emerged solid came the quarter.

plans. of we shift in million as Additionally, decrease to saw customers than to data continued year-over-year overage $XX fees Infinite Rogers more Unlimited a

QX On quite $XX revenue continued fees a of decline. revenue million, X not transition. fees comparison through points decline. charges point overage X such and year-over-year with are of restoral transactional combined our reduction by as Furthermore, be payment the to late We contributed year-over-year overage full in another the another representing down roaming our

reflecting service overage, time one-time flat same basis So measured wireless our revenue slight now improvements. as run margins, points service roaming, last revenue service to to and in wireless up Wireless operating compared solid in rate year, efficiency summary, nicely the revenue fees, a grew underlying is decline EBITDA XXX over excluding XX%, year-on-year.

quality profile. the our As of this we helps financing, device full service measurement understand transition to revenue us

in plans heard then the plans plans. XXX,XXX has customers one up our positions marketplace the postpaid strong and embracing along on No up bigger no in base XG reflecting gross largest loading value Canadians from the QX, more moves network. us of unlimited net unlimited does, with were and Unlimited of This you Joe underpins QX. XX% initiatives, were As very has margin a expansion. a and very world. plans additions was up Canada well speak unlimited into on Postpaid loading gross net X%. as year-over-year this XG sequentially Rogers [ph] efficiency XXX,XXX Both one earlier, were

as last highlights COVID market only was the X% be on as year-over-year how estimate driven place X% Wireless flanker largely consumers QX, the the in up decline concessions, services we XG. X% to This and promotions and as as mentioned, overall higher driving to down and saw down the plans. leading $XX.XX. Following due ARPU significant to We the operations With while in market previously level ARPU competition matched fewer slowdown basis, on that over continue was in or down focus the we are we volume effectively about was long-term unlimited most data sequentially priority but plans, move benefited to we where we pricing overage to clearly recovery bigger I position reductions needed. QX, as year. respond. significant sequentially, $X our XX%, roaming in the into may revenues during quarter, compared able in of best on a brands, well our notably The related Blended from fees, year-over-year growth

important healthy competition the industry our in think to shopping are the market. it's nature of of corresponds to promotions consumer in highlight short and reflective I term active that

from and to we lower this QX more As this quiet. for that intensity provision compared business to billing, shut QX debt launch simple increased were was of in disconnects are with continue discipline our you of Despite and needed year. million EBITDA year. funding, With from low the plans. Unlike costs no OEM a activity, was we our to QX. Owing last and XX% significant additional The EIP improvement in a which longer X.X%, last the pricing, saw offered even at they MSRPs, handset before fallout down competitive QX, if the are last had equipment QX, X.X%, upturn this value ongoing COVID. the benefit stronger QX very $XX the see reversal quarter. impact is the essentially at increased adjusted growing dealing on year as is Overall, was industry drag handset customer to and some no promotional negative accretive pleased by year, activity more see P&L. market margins from stark expected of of unlimited X.X% X.X%. has to now margins in handset the no from more EIP overages, a plans, positive great Canadian customers, the The Last year, look experience reflects was versus economic improve down positive the sales. beginning was effect and we in where margins on the these shift The you Churn economics. margins today X% in Wireless equipment and exposure, booked to but bad from up incremental provision COVID sequentially unclear. potential still through were

better than work the is our previously continues to performance continues currently provide through as environment. its running established, to COVID anticipated, sufficient the allowance economy $XX million bad provision within coverage to and the debt date, way However, the

passed sequentially, the pandemic. increases sequentially. markets in Moving and year results Cable, in the and service the was flat year-over-year to defer during we up points revenue to and highlighted relationships, As Homes last chose no year-over-year, development despite QX earlier quarter, grew home each slowdown price rental we as and our are this increases X customer

to Ignite recovered additions and with XX,XXX. up net Internet net XX,XXX down, to they Ignite While were TV threefold TV additions and both QX Internet from additions net doubling

was and XX.X%, and highest Cable the X% On QX EBITDA year-over-year Cable operations efficiency period and the basis. customers in year-over-year, This margins well throughout challenging capturing elimination by sequential and during to of to churn, lower in on sequentially, provided XX% initiatives the driven history. grew EBITDA improvement our of business, grew concessions the in our some the performed QX. extra financial side, the a

required. Additionally, no debt provisions were bad for incremental

were anticipating with of achieving by our efficient to hardware come and installations, the spending. represents XXXX. CapEx to for achieve be now down. target intensity to XX%, continue continue Cable we end of Self-install We initially the very the costs all was capital XX%

at As XX%. of Cable in sports returned Jays The to the revenue properties. and and and despite margins revenue pace delivered no were the a appetite this contributing recover. sports for notable a to was properties we was up improvements as consumers time attractiveness Blue sequentially to advertising improvement and Media return QX cash have all live of of and home business, an from also profitability. was advertisers X% started size Revenue This improvement result, games. demonstrates up broadcasting for significant year-over-year growth our high with In XX% sports achieved

XX% While was a a adjusted recovery down EBITDA basis. a very we saw on in sequential healthy Media year-over-year on basis,

QX advertising went in consolidated Second positive down and revenue basis, in million $XX $XX quarter, adjusted revenue. negative was the from a X%. reflecting QX, EBITDA EBITDA million was X% a down in to improvement total service On

have and exclude we $XX EBITDA. adjusted impacts the COVID said and we If In adjusted total in and QX, million the estimated been impacts revenue million revenue, flattened had estimated of million revenue, $XXX in and EBITDA. in Or the were you roaming in in way, would of EBITDA. related $XXX quarter million impacts overage, on adjusted QX $XXX another

given self-install the Internet efficiency ratio and uncertainty potential improvements of environment our projects, CapEx associated impact COVID, reflected Cable driven very wave in deferrals pandemic, TV. consolidated in Ignite in still While CI to with of invested million these of as the the and remains by We for $XXX due and a notable effectively. are and as XX%. which including are CapEx well of the second numbers projects a in quarters decrease a coming teams there significant months managing quarter, was capital the expenditures The was decrease year-over-year of Greenfield XX%

is investments. I on important think strategic CapEx we're to holding even it's that note consolidated our as back down, spend key not

in Wireless enjoys up Cable these assets. businesses Today, over and gig XXX%. and our Cable entire platform our Ignite Internet speed, Our ratios our is affirm X already CI footprint leadership in investment TV

January. We have in XG the The given rollout with largest XXX XG impressive enjoying the network our particularly already XG. mid pace started is in country, communities

With year-on-year. the million of increase XX% lower CapEx, and generated improvements cash and $XXX free flow adjusted this a quarter, we EBITDA

same The and should that healthy, the Our cash was of percentage billion very EBITDA liquidity remains company's the X.X% tax XXXX. rest at rate a $X.X year adjusted as in for of be the quarter, in range available.

sheet interest balance low structured our with outstanding Additionally, maturities is debt. and well long-term on rates our

Our interest end rate X.XX% of average term weighted was an quarter XX.X to at with years. maturity average

recover growth predict QX nevertheless, the but busy of term. not industry slightly of traditionally in season, compared this recovered at basis sequential near subscriber difficult won't and financial see terms dollar pressure QX. in sequential, specific a In point. data quarter, Whether at we increasing as point, we the of general, to outlook, well similar in provide additional, the in holiday do but guidance, has anticipate the is QX competition under QX, current industry remains consumers believe In some phones, last the me will anticipate QX. to with remain upgrading to as same share will we We of what Wireless, we operating year-over-year but improve an level driven color to roaming the environment plans. improvements ARPU In let and healthy, will repeat depths the by on to loading this

as right ARPU a unlimited have these underlying the positive. plans increase looking the our to However, in XXX,XXX more active upgrade, we as continue to highlighted of drivers, with market plans, on fundamentals remain focus by sequential

basis, QX unlimited be our on of million term overage the transition terms a plans. In will year-over-year down near given $XX we to anticipate revenue,

we anticipate the As overage operational clients, multiple, be to near this do transition we is our term work to continue financial and results in as benefits completed. to through the reflected

Cable continue for the fewer of In simplicity drive consumer ARPU, centers, dividend customer past, As e-billing continue expect improvement revenue, with the our starts in business we sequential in have in current modest and also and Cable the improved churn seem loading other and improving. higher in to QX as highlighted form around margins, QX and for intensity levels. call we in the have areas. and EBITDA calls should Capital the lowered should us, a improvement satisfaction sequential business, plans at be to these and both housing Wireless

scale we current significant we historical the relationships this as ongoing vendors implementing. our seen projects opportunities savings are year, from continue enjoy We benefit we to the in have and efficiency and with realize capital

shows some to key investing and our remain sequential progress we winter see As some XG declines and our early adjusted sports late business, Media In and revenue to we as will Sports in as for to the always, transition fall growth. committed EBITDA as seasons. of date

losses Media anticipated adjusted be this to earlier the year positive will net EBITDA. and Blue excluding Our for year, we less our be Jays, the are business expected much on than

how anticipate the the remain current could In very team capital terms and improved the spending. of of fourth is at cash on we range as adjusted proud quarter EBITDA flow, environment. navigating dollar same Rogers based continuation QX of approximately the the We're efficient

continues growth to economy there period. effectively efficiency, terms the profitability disciplined how generation, managing we this of ongoing rest show the significant flow year capital through operating of Canadian and opportunities, improvements, QX are uncertainty the COVID results be our the during While cash impacts investment of influence will in

to call the Let now me to Q&A. commence with the our back turn operator

Operator

you. Drew RBC. question from [Operator of first Instructions] Thank ahead. McReynolds comes Our Please go

Drew McReynolds

side, Two Joe me, Thanks the Wireless to market first very believe up the intensity about competitive did, or much. X% that morning. Tony, you and Good down was maybe alluded on being I pre-COVID. the Wireless you X% from front,

promotional activity I think there there forward, less too in that's market gets or is contracting out concern aggressive. that going a expanding

updated iPhone here among unlimited see any into to on particularly Canadian side. coverage, base in changes the you. XG tiers see you talk then you peers. the and here Can come you your with you profitability XG market how believe XG on So enabled related. versus on towards somewhat that to that to had the Seems question premium setup, this seeing growth in position quarter. you're Wireless second expect that market get like growth your on expectations particularly migration lower this the consumers acquisition largest iPhone to Thank gravitate as And leading but here I capability? Rogers well balancing we'd love thoughts retention bigger handsets broad or you’re Clearly

Joe Natale

Drew. We quite to This price Hi, is Joe. saw of query first your in aggression a question. bit

it Our views to previous down, the back. down XX% call of XX% the XX% market or down of to it was in level radically bounced XX% QX. of or year QX in QX, so In

whenever last believe but will was see We off reports same looks last year. X as roughly maybe what the or in like, it we points it year of percentage

does up So we again. be competition of think the the brand. And lot market for lot on, kind flanker just active, opportunity and game were absolutely is flanker not the to game in woke loading okay, everyone froth, clear. we market aggressor, We the the of as In saw the it up market opened when saw of I does when it the on, a brand brands, again, create flanker said in a competition create overall.

disposal digital to of to plans Our The always the overall our be a our to plus but tools in openings transact also legacy as increased about customers the ramping ARPU for unlimited present capability we at growth. kind around tools of store market Overall, $XX and there or those to we've of view be forget, timed cetera, we market have in But some when don't came around customer kind unlimited comes fruition. always is the of I it with one up, the profitability to and balance has around base. us opportunities the market. average volume will giving compared whole, are profitability. opportunities et timed as our and always been mean,

balance take the same people plans there the have capabilities price to and things get, profitability we different that tier whole. of along drive to levers and as even the time, about post pre nets. At up to So act are volume and overly We're the unlimited the advantage the not of happening the from a is so that way, of part into well. worried balancing as

the that industry to that we're You in probably saying, equipment positive margin add the the a first time the about talked beginning, history handset of whole. equipment Tony the for margins, as in discipline

nature So described. is On pleased positioned it's question, got but network for the focus we're It's your largest really that growth the country. of we're profitability, with square there's XG changing, the on how game the second as I versus not accident well a future. the in we've still by

were we mind. to in had we As XG LTE XG events, squarely upgrading

their by we As in readiness our do far so partner, XG Canada customers, capability is And the we largest, you upgrade to now base to did as Ericsson to time we of picked period saw in LTE growth with for XXX X.X short million and advanced a the and available a whole. those cities. because We're from very pleased with unlimited of on XG. January to software a from come is very that our in plans unlimited. only at Unlimited believe fruition

accident base point to relates new by an in as iPhone. very over We've excited that and the not pre robust we're business that mind is iPhone, the on it's of iPhone dots our half Bear about our in also of the that of quite largest it well. connected sort we iPhone, new very that's significant we the orders. that as And believe base day-to-day Canada. on have seen a So, we've part so

market to relates as we're pain of market ago. and course what's to capability year happens. moment in of into overage for abundance That's year, move the the go in is took XG is as and abundance a we're say of we we're the why of going kind of you XG of unlimited to future, this the that around data from you for marketplace as where will that a the of shift data and well to it through prepared the enable future. data it why we go That's a scarcity that's time ready transpire last together ready ready we're to launched melt that we So of to so and going. add going The a marketplace

Drew McReynolds

Thank you.

Paul Carpino

Thanks, Drew.

Next Arielle? question,

Operator

Vince Our ahead. next comes from go question Valentini TD. Please of

Vince Valentini

a Hi, of thanks. variation question. Bit on different Drew’s

You your ARPU you to obviously versus so subsidies, over your of the your starting follow it talk a lot XX say being to starting in haven't there. and EIP to positive that's continue equipment Can in margins and show impact update, as impact If selling up to you're I’ll is if you. they bounced the to sell to lower great. can ARPU and is an why speculation that back and Tony in in the maybe the positive all”, something XX you equipment second mentioned shares a and you “at bit have refuse to that's CGO you're considering mentioned quarter? reason the of market anything numbers all a just from there's And up, just then of throw that CCA there's to you about

if help So you anything publicly a can lot people? I say about it think of that, would Thanks.

Joe Natale

then questions. question the Vince, you. I thanks don't the first, Tony, answer throw to it second and Why for

all offer, of provide on expires put capital one dynamics are allocation back our to believe November me strategic setting normal stakeholders. would as Altice and the course what a to dynamics forward our us priorities I and we accepted, our thoughts do the we review comments If offer. it's would planning priority this with to compelling of it's is and expect you all that offer community don't and what our Cogeco. very what around fair other part of capital the benefits investment would think situation, allocation. materially on shareholders XX. that not of say come and Let plans do, Rogers we have Board, on any the The

and say intention that pretty going of to and But that's think the delivered. sure about much all work asking you I focus I'm want have what team Cogeco Vince. the to the quarter has been I about I'm for people and the questions. today, really energy thank hard the on wondering

Tony Staffieri

a year-on-year, XX% that I the or sort XX% revenue, compared mentioned bounced the that down late payment little QX. more of Roaming in ARPU, to to, first question revenue impact of I bit. it QX in of a of Overage in improvement a there equipment down sequentially. had other fees of that to those And the a XX% came categories compared quite was margins, little bit then to of down terms an so on improvements sequential each QX, down a on It or Vince of as down was sorry earlier. was in back still year-on-year, was as fees revenue year-on-year amount restoral while your proportion the in service down of charges, setup terms from referred result predominantly part three bit.

the ARPU accounting very You the in [ph] that in revenue, better you There light as at are And equipment right, but base as continue ARPU revenue been in time point way volumes to hasn't last been cause through QX to pace, impact small by since revenue expect of we it's healthy volumes it ARPU. to QX positive out, should in year-over-year margins works subsidies, today, service basis. the see over earnest the reduced and movement year. margin and equipment have equipment we see enough in with a a we'll and then health QX But QX between particularly still allocation launched service that on relatively well.

Vince Valentini

guys. you, Thank

Paul Carpino

Vince. Thanks,

question, Next question? Arielle, next Arielle?

Operator

Tim Please next of go Casey ahead. Our BMO. question comes from

Tim Casey

reopen. the quarter? very today. Obviously, was a Couple the more month how and you bit earlier parts the wondering think numbers talk strong if can in particularly that could wondering if a came comments than I just wondering September, Thanks, a as one about little finished, is? good the less made talk less Just me, through from that I'm moving if, September And a on But immigration, because about just still progression many Thanks. little you I'm morning. students public were and very it strong the September so you in shutdown terms also, posted thought trend just number. see cautious out the you sustainable strong. Wireless you sustainability foreign side? you of

Joe Natale

from is how seasonal weren't pent how if the is, we was view quarter was our versus we was questions. of question going and much volumes sure it did even right of there Right the for throughout pent the second And much is and us, stores, pent whole much the path for we health was saw stores What and from of the finish, ourselves We'll demand both earlier saw the it the build we discussions, a incredible kept up felt the to that quite sort more of if on out. Thanks starter's we in week question those and of volume, volume in largely persisted moderate of continue comfortable and of demand workers, Starting stores well. how and late And And opened, et woke to market Tim. We ramp? conference June, up all quarter. before start this seasonal shopping. Clearly, to up. you digital Hi, first. as encouraging. up really activity see in opening, cetera. of saw things opened any week this malls the handful kept up the demand. right pistol, the kind for hit. the digital demand is the us this opened People with was the asking volume in it do sort for through we because seeing some direct except and -- stores continue it's And

marketplace. mentioned this early kind in part into as showing, we of QX, Tony of in marched the activity still of the As commentary, lots QX,

will and connectivity whether people car, or is you're important about, in think your a it of life part you're whole enjoy mobile all I that, connectivity, you're at matters, out an and matters, underscores within time. it matters having the whether pocket their is in what arm's home, and matters reach matters, whether and connectivity as

the seeing we're services So essential nature of whole. provide as a the we

really and about balances In People of terms economy. performance. what bad Right our declining. talked first the seeing are think Tony the debt is to of now, that, a derivative card credit are sustainability, banks we're bills. I listen it's paying their

shop of economy ready in like? might asking And, home, visit out to ready, What The and in we're means out a not we've well in the functioning let health general got of store, transact online, is of a or or we're do know all will middle mechanism ready let And that's people's there. the the fully question a propensity good go want technician terms right in their and I COVID. their looks, not in stage store really of this terms in play to quite what modalities home, polished. we're everybody's of however, two now. to this whatever visit a So that is, technician

far, so seeing a And very we're Wireless. on healthy focus

market, well a students, to back, of for You're right are those and as we very temporary do visitors in down. that's And that and will opportunity the accretive to it be more there even come there foreign Canada terms they that. at pause when in I volumes Roger's do leave overall the whole. team it volume

Tim Casey

Joe. Thanks,

Joe Natale

Thanks Tim.

Paul Carpino

you, Tim. Thank

Arielle? question, Next

Operator

Our of next question comes ahead. Please from BoA David Bader Lynch. [Ph] Merrill go

Unidentified Analyst

those to accretive year from I have I I good look date Thanks. the Should the we margins XX% the intensity, there sustainable here to on Matt on progression this getting, as victory is wanted touch on out? of you question. should understand is then your been and just see in next you've what's get since your think thoughts in on been intensity. how ahead components the it David. but and XXXX more going And for kind of on that quickly margins trajectory saying sounds and what or Wireless there's think Cable equipment, that are what guys. the previous wanted is taking capital maybe you into, on your advanced those and is, CapEx It's gains target you're we goals claiming morning, margins to the sitting just efficiency like that look Hi, forward should Thanks for you're achieved it any -- driving get past on be? Wireless now, those we a service steady-state -- views.

Tony Staffieri

Thanks for I continue we but for what can QX them, of a really couple we're ourselves see pleased the Both so our I into playbook in and We'll and get QX. far don't question margin on with progress made terms do the want continued we ahead execute on a Matt. of expansion XXXX, looking of too things margins, out Wireless to on in execute to prospect for basis. year-over-year we to that good continue say

at about that's And talked Joe as 'XX, will it into and and head factors in we've number and and a more office, and way, operating the but transactions. about if only are digital pivoted, we XXXX a of on they depend nature. maybe our but in several, models, our fundamental As of they're capturing level, not probably I'll enduring back much think say customer many all about, you those fundamental

as shift cost and fundamental structure on do going And so, it there's in the we see enduring.

although question of you of in for Cable expansion the as in continued well, to So, QX, more look CI. similar was side that's as margin expectation your context Wireless. And the

try models efficiency. the couple we opportunity gave were fundamentally of to things. to effort the spend concerted again, to range by necessity, able on through I to, part pivot CapEx that end the us and And a the had get QX, capitalize of One the in reduce XXXX. think to operating Cable better Cable we reverse, to a XX% CI, XX% is, CI in

for wave into and to volumes, creep you, But next I had you little of head Thank we little so, capital QX. we intensity targeting. been wave cost ongoing XX% continue see think efficiency on that -- of next in in expect XX%. XX% should And the year, next keep Matt. or in around a may the check to in Depending it while, can of to broader you bit the as Cable sit a

Unidentified Analyst

thanks. Great,

Paul Carpino

Matt. Thanks,

question Next Arielle?

Operator

of go next question comes Our Canaccord Genuity. Aravinda Please from Galappatthige ahead.

Aravinda Galappatthige

to as Thanks certainly again, as taking there, sort of downswing of XX% my of A couple the of Tony, With the with. that including seeing respect X% of there talked well to ups Wireless Joe, overage the providing overage of was given updated yet impressive. timeline in a the getting I sustainable. of the target numbers, them about and an the outlook, wondering questions. I sort you I decline? lot around for drivers sort you've that previous the a morning. I follow a timeline about revenues. past, for Good Is cost, you're sort touch other timeline I of sort sound definitely the And rate digital of of that in decline service there talked start secondly, was, the the of to on that forget then which but OpEx the think, of know if OpEx, thanks And what mean, the points, lot there's

wondering we So thirds you. to comments, think environment we're if -- the like you wireline of seeing environment think for wireless how change translate that it sort I we cost side a of pricing today? of the easing big conditions? competitive should things. is of at just the seems question COVID maybe that conditions, those, a lastly, it of overall of sort of reductions the downswing? particular, current of sustainable there sustainability previous I can was mean, those and given on beyond sounds sort least see to two like that heart, regulatory follow the picture And of about Thank in and think kind even sort on of your the on of up being sort of the

Joe Natale

about bit sort Yes, a of this and of where talk the overage last evolved? why don’t Tony, you June start year, how started on in question, we maybe

Tony Staffieri

days recall, Aravinda, in we exceeded we in early out, it rolling the progressed it and launched expectations. unlimited as you may our

recall, in at we'd about subscribers. base, a third by our may we X.X subscribers had this and You period we that at million be by already our projections quarter, were at probably October, call when were million

six had we run overage. to we off to the run so, And eight an about that taking talked rate quarters initial

we quarters. that had six early to four shortened Given demand, the to

sitting about X.X. thought we're we would time, this And, what I at about it, if we'd you the, be jump we over over ended, today over by So call will.

is heightened in for the because to while healthy, little it COVID year. talked were we but demand so time is down robust, a what our And bit about when of that QX. and unlimited this it last Still expectations compared slowed trailed at

to to And estimated. the overages, probably drag back on six originally so, had eight the we quarters that

over And it's longer be and it end some so, it, on the of million to $XX before left put expectation probably, numbers To about overage. we're of have drag by about year, is the QX year of no we'll think fully the ARPU. a we next

And see the so up ends our can Wireless you context in it much overall of being a smaller revenue, amount.

and where And so we'll keep heading. that's very on updated transparent be you

of Second that? Wireless. costs were question why take part in your Sure, Joe don’t you

Joe Natale

will was store, store. been digital of in happen pick it overall, approach closer I'll COVID of or the sort And, up had remarks. order just overall. in sort new not the full sales and Yes, and continue create as ones list we of sort motion and to didn't drop order of the think sustainable. all has they now, or it's have through and of we a curbside been in the bit XX% business XX% cost and, of ramp. XX% are this online them the mix self in about right just of steady-state service It install, more probably up of running terms benefits Aravinda, full I just as I've take, in brand either go opening where already. worked to that discussed historically I an XX% all support cost hard the went and through installation our initiatives, that's an The it's install a mental the last, a cost of of I Digital installing think my will about pick from the COVID while we technician of self online to create improvements in we're we whole, accelerated actually X%, Cable, at completely were

digital we capability. that the physical our of created modalities these leveraged So power and all distribution

so And in therefore, we directions. swing those can

order to or to be. call order and in it bring to someone the it You home it might pro add bring go, which wherever to your have you you to on or allows online

encouraging economics cetera. but cost all that our the see choice think channel is choice fulfillment, I channel fundamentally that the between terms comes in with store, key of So between not just et not else. different move to the economics from And third-party, they're that's above of that are mix away. very And perspective, channel between just in going favor described, I the

from a working us something XXX% of is nature. our work very team, well. from of care might I it it's terms although we And In XX-XX place home that see work remain where or home, at not for could in

are things in invest to I the enduring, them. comments; capability cost pay as and of to well. Assistant about my continue majority we'll we'll of to invest vast all continue that continue are talked in Virtual that dividends opening the will and So in improvements

we is view but that expecting go that as my less, front. on forward So, I'm not more

government regulatory of I In or service never terms we leadership with has had the government. And, levels the political and the offer in both better of regulator the with we've think relationship word. at the and become environment, of every administrative level the fact a lifeline of our government that a respect

or I more the think have from bridge the rural gap which late don't as or Canada's useful greater have that How ability through of online that's a XX% future of through of aren't build do conversations to quarters And the online around we trust we collaboration. XX% table the Most the of have for side conversation think do connectivity? a platform like. do same a Edelman the ago. of great is very of to quoted of at been and Canadians in build looking the couple get do issues that how I that of I results from wireless, we greater fixed score connectivity and the around, rural how expansion Add Trust footprint broadband great to Canada? to the because XG

terms is think more government up with Hope past. a industry Our than foundation Aravinda. the And points it the dialogue of creates on helpful just narrative and I collaboration whole that's for just different the XX in trust. focused

Aravinda Galappatthige

you. thank Absolutely,

Paul Carpino

Arielle, Thanks, next question please? Aravinda.

Operator

Morgan Our go next question comes from ahead. Please Simon Stanley. Flannery of

Diego Barajas

morning. filling Good Simon. for in my Hi Thank is This Diego Barajas. for I’m taking you question.

seen office all as or Thank mentioned or you impact footprint back you have mentioned the store footprint? channel particularly working savings the you footprint, a and in even post-COVID competitive to at Wireline the footprint and environment home rethinking launch, Mobile and you. mix, as from a in Wireless on working retail even activity, and footprint the office home, Second, the there? Shaw from any and are a Just Shaw's material on going you

Joe Natale

Thanks, Diego.

roadmap, On with the grow physical the distribution and lot intend and a to and combination keep it. and is up go the creating think the have to order great to and two distribution online integrate talked storefront, store have doing We one, advantage. the the experience capability Ignite increasingly these we customer to punch a pick the cetera. our is just physical fact XG capability on and briefly we're two. and a about order of the We store, place it et pro that a journeys modalities like of go in online, online technology or in that I

two. integration the in We we're big believe of believer the So a physical distribution. in

to relates A space, as we what it we'll lot see working As people our decide is home. comfortable environment from very COVID. of office coming of the are working out

I in is right organization. not the think that XXX% work for answer perpetuity our from home

of and complex across on you face-to-face doing. and more type the on front. they're work on people groups depends it think The can't replace transformational working are that I tasks, organizations, that tasks, departments different

customers weeks our kind stay some COVID. permanently them They before many are office days of every culture home there training, However, operations home. roughly from there, working the cetera. we XXX we just come already the benefit will of had to And working through call et can care our supporting into agents that from few if people enjoy that, connected, get

outcome. Western it that sure stood well, how find the where and We more, and in then it that pleased created our in will mean and well, less less office brand with of makes the So we're And no of quarter fared Canada. over we're mix much intensity Mobile, Certainly proposition we'll our but real value areas stood terms question, competitive course in the intensity estate up now well hybrid versus right in not of sense. sort it Shaw overall.

Diego Barajas

Great, thank you.

Paul Carpino

one Diego. more Arielle, time for Thanks, have we question.

Operator

final David Our comes ahead. Cormark McFadgen Please Securities. of from question go

David McFadgen

Two squeezing questions. me for in. Thanks

record on business, in that So just Cable quarter. for EBITDA was the had about a a the Rogers. into you talked the expectations going EBITDA and your margin stated sequential previously improvement you And EBITDA fourth revenue margin for

as fact are home price more wondering, so the is a saying games that the about but self can EBITDA for would margin Media improve for talked and continue to there through weren't I'm increases games you've if negative past, EBITDA market? the And for the just Cable home what business, this there any do just theoretical nice, you changed? Thanks. secondly, be continue and you EBITDA to the on or there for positive you put wasn't then that the in thought just the you So delivered wondering quarter, the tap in any a installs, yet Media quarter, Jays in people can into

Joe Natale

they questions, were Both David. Thanks, Cable [indiscernible]. obviously

As that a so we to have us. improvements natural That in go flow healthy at and are will very lift that through into sequential QX, will looking rate we EBITDA margin a for be line. I'll top reiterate

margin Internet, costs the be of comes play in so of the ongoing year-on-year, little impact me, as continue I expansion will We forget mix factors in carries helps the that were a driver don't revenue and from shift three of it's also and the margin call, piece very and cost cost programs will be QX. And reduce QX excuse expansion would third it. to is compared natural is, variable margin of in those play in of well to all sort that as more have, that which the that video, then the that second, what

on, would don't came on a same advertising So all factors events. have be across of keeping We're and revenue year-on-year somewhat continue sports they dampen good those three the cap Media, sporting sporting the higher predict at. to of sort at generate, then improvements. triplication I it might the And for in outcome was we'd of and franchises. in time to want us worried We just amount the where to that margins factor nicely overall driving that or able was sequential the were during the all duplication ad events revenue the of quite out but and

but for the And in hadn't upside so it we that David. upside QX. contributed questions, was that totally positive that to good that's Thanks expected, what

David McFadgen

Okay, thank you.

Paul Carpino

Thanks, Great, everyone thanks, David. soon. us talk and for you the joining to will on call, we

Operator

conference This concludes call. today's

have a for lines. participating You may day. pleasant disconnect Thank and your you

Rogers Communications (RCI) 22 Oct 202020 Q3 Earnings call transcript