RCI - Earnings call transcript Q4 2021 | Rogers Communications Inc.

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Operator

Thank you for standing by. This is the conference operator. Welcome to the Rogers Communications, Inc. Fourth Quarter 2021 Results Conference Call.

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

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

Paul Carpino

you differ. review discussion Good the Fernandes, results XXXX that and for the begin. information could assumptions in with everyone. results me earnings other Chief report President Executive our our language to Chief risks Technology actual our in Chief today's that, will Information and to Tony and Ariel. let annual turn forward-looking Molnar; our Financial which Thanks And actual Officer, our Please joining With could Today, Paulina include cause and various it I'm cautionary differ. Tony morning, and estimates us. here over regarding report Staffieri; Interim Today's Officer, factors, Officer. thank and to Jorge

Tony Staffieri

the quarter, Starting more our very demonstrate Molnar, Today, execution our important you come new time results. see our through an year I'll to then this and during on supported by it's you, and detailed board Interim with I to commentary good morning, Then priorities review everyone. the such details outlook. serve provide shareholders, you and increased of and year Rogers, fourth pleased I'm share CEO an fourth period. our full a Rogers’ provide competitive with focus on our my especially company. today. for join a lasting CFO investments honor a that bring together also busy stable to and my to take in benefits Canadians, Shaw, of as in a us will see execute and at experience. embarking results our our Thank businesses highlights year customer And will on will an that privilege of and some networks Paulina our Paul, XXXX our with quarter. each quarter of for us will intense We're role

Shaw, why home we're with able that focus performance on for segment and in our of to better quality improving in made newly with transaction performance integration national be better organization That's our and product will area. experience will Even drive network improve the now, the and prior will and by better revenue on the us while do business. and enabling broader customers. business to not leveraging and momentum postpaid were best-in-class our We a our growth retention Wireless up Wireless last importantly year in revenue churn to our and lead metric. editions net and XX% in Delivering from ARPU, customers, improved recovery. continues seen improvements net further Our saw improved customer churn the levels in as levels ARPU. XXX,XXX, both and points. stable, service postpaid new were profitability ongoing EBITDA impacts despite but improved this revenue four strong basis of through service with was good Cable Shaw provide. this we've our profitability business in recovery division to in to this we and and In growth Cable the results strong our solid growth, our flow in exceptional Wireless satisfied the blended changes created gains allow pandemic, increased our to business, our on will adjusted capitalize the a family opportunities can ignite seen

be and priorities. the focus into three XXXX, will on beyond from quarter fourth our Moving core

in country. of and we regions will of to to priority the and benefits successfully and Our Canadians, previously XG in the deliver form bring it underserved of broadband announced many transaction infrastructure Digital the XG particular, the have first Shaw the our is close roll-out and have synergies not new they many too in and into to is announced success why importance, that its XG Canada's extension consumers prosperity, eight there still despite do we of last are need. the the communities just in connectivity Ontario. week, vital the Eastern and That yet are businesses connecting

We connectivity Tofino, X Highway also vital British the Ucluelet infrastructure the connecting and Vancouver communities Columbia, Island come. Alberni are of more that the announced there along part artery investment in will and significant to improve a Port of to Eastern

regulators national a true Teams will to consumers. have services, history. that While to have on we and across we running where which bring regulatory significant brings This to challenge they progress digital gap consumers will information do approval. combined create businesses, role. the a play combined than allow significant Rogers and the the only offer help could key towards and urban Rogers our divide, government from accelerate will and have Shaw integration of by delivering process, to the combination consumers, connectivity Shaw businesses fully competitor real defining either XG for plans, to the following to close so been have hit Canadian rural also business, company we'll company next-generation and to creating the the The the made economy. also Together, the allowed moment faster been networks of working us Canada's We're and other investment us network ground review of the and do is and the arrival between the in our benefits bridging wireline will the Canada assess combined networks a choice need and ensure alone. both nation's is working in together wireless communities

decision closer progress. get will up-to-date regulators, all as a we on our As to by possible stakeholders our we final keep as

better drive entire Our second priority our to business. execution across is

Our we past better. peers know few the performance do our years, can over we has lagged

customers continue performance, necessary our build provide service will our to to the to and improve exceptional shareholder make we value. long-term changes So

I business. full and With renewed we a We have as networks, can achieve execution, services the our know a team. a focus potential on talented

to to world-class legacy. building The committed decades, third networks. are back for that delivered importance on we the priority comes networks has of Rogers award-winning and

XG our network investment are on growth better We need and address to digital the and for across market Canada. increasing in infrastructure capitalize opportunities to

And In in in of our was growth in enterprise years key groups plan are building ago. with first universities, and are business blocks today's industry starting to XG XXXX to to succeed our expansion Rogers drive fixed place customers digitally and addition, and cable years the the put beyond. up we've Cable company businesses two Canada over in in enabled parts the past world. two to wireless our footprint launch set of Canadian

It's announcement Gold economy. company week Canadian XG. with Canada's earlier to important for mine a good gold the example is opportunities Lake. Our called mine with is Kirkland a Lake Lake a Gold life brought of this Kirkland an Detour

rolling be In private coverage, footprint. square across connected platform XG its it's and in XG XXX first wireless of and so not mine a the our Cable, Yet latency continues fact, providing gold kind fully network its reliability, by place second Rogers, Detour in over think to end-to-end it's kilometer across out Ontario, of the with redundancy, full largest Timmins, Canada entire network, In you of become remote, our Canada, to kilometers of working deliver soon. performance Lake north Mine the XX Ignite operation. kind enhanced has a low industry-leading

premises our speeds many as evolves. areas the speed offer technology to HFC are fiber gigabits modernize We footprint, customer faster and to across areas of which based today will our cable GPON in in new X.X and network technology expanding our premise strategic offers continue internet

continue roadmap, with DOCSIS DOCSIS which closely businesses network strategic will its by efficient and to economical working with We multi our a speeds which homes we customer Furthermore, a and path X.X, X.X provide experience. reinforce national helps of also our footprint. our from benefit an partner, advanced across Comcast, deliver and evolve leadership technical deliver technology platform premium scale millions gigabit and us to to to

growth, our cash read we in as as growth adjusted XXXX. an full this release acceleration investment Moving reflects our year as of priorities, guidance you EBITDA beyond free and in well networks. press This our flow reintroduced increased for have morning, revenue

the acquisition making reflects guidance areas. of changes, we anticipated the are performance key financing from providing effect improving to transactions any the in Shaw, other without Our our our that guidance Note the are or associated towards giving associated also we benefits major each service three or all pandemic revenue in emerge as the improving from expenses. to X% anticipated X% businesses. Total our to of as growth be these fundamentals in in continue to well XXXX, revenue businesses as of range is

data continually growth We be a fueled expect comparatively more expanding usage in our more services customer services. base including related and a usage per travel a and low by continued country with population our with on growth wireless to rates, basis, combined roaming of penetration

to our should and Cable the fixed improve to in in rural Our our see expansion segment. access go-to-market we're making improvements the footprint start this benefits strategy communities to of business from wireless performance extension plans,

to will year. of fans returns which outlook our EBITDA Centre positive deliver includes Jays this adjusted anticipate the Finally, anticipated media games, we for the XXXX at Rogers allow

range from renewed on to X% For XXXX, consolidated come as to which adjusted X% highlighted recovery efficiency close and transaction. EBITDA, a we even anticipate should in Shaw of in the of cost the prior well and benefiting the I activities focus in as initiatives just management growth growth our

Increases as last to year and our network, capital $X.X the $X and will our as to well, allocated For compared allocation range directed in to total in capital as in advantage CapEx to billion. billion CapEx of investment well of will spending expanding of in cable investments our XXXX, anticipate network. XG continued to we the expansion our our network cable be envelope within spend footprint our more our be have our maintaining

In CapEx, of billion in up grow reflects our cash executing this despite in to we increased the moment billion in Finally, in range guidance a spending an businesses. is to of the billion flow important we $X.X each from of have our improvements in free $X XXXX. the evolution Overall, $X.X anticipate Rogers. confidence to closing, generated

committed invest Momentum executing the priorities team Shaw, our incredible have results And matters. have where see an and our close We XXXX, our go and is priorities. can that is building, outlook. in forward it better right on to execute you we as for

and are what very I’m it excited what accomplish. have We for to takes we going

more Paulina call over share me now quarter. you. to over Let to the the turn Paulina, about details to

Paulina Molnar

Thank good you, Tony and everyone. morning

phones. XXX,XXX Our of reflect provided or during additions net additions postpaid increase included our one across for met the QX continued as by businesses economy and of quality in well, additions driven prepaid exceeded mobile In most reopening the we net but phone XXXX, postpaid similar delivered expectations wireless, phones-only to between enhancing phones the Correspondingly, will we definition postpaid execution XXX,XXX in a split continued reflect from we during wireless of customer the ARPU financial high our we environment. the The solid net to year quarter. provide to ago. peers. will blended Starting phones-only, improvements XX% our the COVID results of our reflect of or be will QX mobile QX ongoing October. continue and we call And

continued the increase as in QX, to that X% ARPU exceeded of X% service outlook. Moving our to churn. Wireless and up data of churn higher tier a and customers X.XX%, last Despite sequential point X% The more ARPU Blended improvement year-over-year was activities also provided of are the ago. roaming from to a revenue QX growth rate year compared as recover reflect year-over-year we revenue delivered X and one well year. on up revenue higher plans. promotional previously $XX.XX strong basis service characteristic improvements

in XX% was of recovered as remains muted. roaming outlook, previous of pre-pandemic has it not fully seen approximately revenue our Roaming ahead travel XXXX. level of was QX While

were Finally, up year-over-year business, remained unchanged revenue remain margins in and at adjusted active a stable. from year an EBITDA ago. solid This wireless XX%. EBITDA Total strong continued and and In cable despite margin adjusted financial QX. service both EBITDA XX% Cable environment was one our was relatively EBITDA results our promotional a flat adjusted adjusted X%

cash broadband increase total capital healthy Ignite from product Finally, year margins On continue This subscribers to a TV in TV also up we subscribers ago. XX% subscriber grew XX,XXX of in one Internet bringing including at QX. within a a our base XX,XXX and XX% intensity Ignite basis, see retail and growth base, the an XX% quarter, our subscriber XXX,XXX additional or to Internet approximately net this reflects additions. XXX,XXX. by remained overall

a of grew rights at for previously pro XX% change $XX advertising operating revenue Revenue primarily in adjusted whereas Moving year QX quarter level was on recover. consolidated year-over-year $XXX EBITDA X% to our driven down timing by QX compressed is in and were schedule. the the regular year-over-year of The we EBITDA their business. Media adjusted fourth was X%. skewed broadcasting this was by our versus sports slightly EBITDA last and than notably year, schedules adjusted broadcast decline media and in continues leagues Adjusted sports negative In was million up professional At resumed season results. season million. XXXX. for guided better total full fees XXXX difference as schedules, leagues The to sports the and revenue

million last in than XG higher the support restructuring, we or related teams in of incurred to $XXX guided million, of $XXX million with the the our secured more expenditures QX network higher quarter in environment the and This XX% plans expansion were rich and as than market year. was acquisition is costs During Capital XXXX. costs. our tight other which equipment associated including Shaw transaction, previously financing integration supply proactively $XX of

networks XX% higher historical and resumption our our in $XX line taxes XXXX, outlook. the annual normal million year For intensity our Cash a more of accelerated of around income in was capital XX%. were QX provided CapEx a with or XXXX, previously billion to in investments than reflecting $X.X full in approximately

XX% in a discussed quarters higher expenditures. taxes Free million, was of previously the XXXX. first down result $XXX as cash majority As the the of of paid QX, three in capital our were cash

cash over As billion of credit in liquidity. available program. $X.X in in XX, and we includes combined facilities $X.X of bank securitization This billion available our under had cash a December receivable our $X.X equivalence billion

of net billion we redeemable offering which in of years. billion, QX, due highly During subordinate proceeds a successful par were were and Canadian notes after five executed portion $X.XX license end At was spectrum $X leverage X.Xx a the the of The at XXXX of earlier megahertz payments used reflecting adjusted auctioned X,XXX year, to EBITDA year. licenses. the this fund spectrum of for

cost was term average was our of weighted weighted and average borrowing maturity XX.X our X.XX% Finally, to years.

turn few now comments. me outlook a Let to

improvement. In low we on the While will year-over-year single on the a at outlook as issuance efficiencies X% on wireless we adjusted at revenue should some continue margin transparency to year we QX. believe Wireless full we similar service should be growth guidance, basis, the will ARPU resumed have focus of provide blended EBITDA continue for in about XX% and digit. be and

that influenced abroad, number see important of and revenue cases revenue in travel the to adjusted will choosing it roaming However, is both In to we COVID should year-over-year continue by Canadians EBITDA. remain while be improvements cable, note elevated. to modest

to normalizes and as be rights Sports the are negative broadcast EBITDA the our be traditionally adjusted business, in in revenue Media Lastly, and QX expenses to will over to stable higher year-over-year expected is be the relative revenue, which year.

cash taxes lower performance flow to very pleased elevated towards last cash year, Overall, better taxes CapEx last later spend. offset execute outlook be down parts on towards of with free higher quarter $XXX positioned with due With somewhat guidance. and We full cash to the are to associated Shaw handsets. commitment we’re of shows cash XXXX. our first their year to XXXX. we this the well prospects with our anticipate higher all free Recall of EBITDA up approximately compared I’m the by moving our tax in our fourth combined Finally, payments the customers plans timing encouraged cash execution and company of QX we expect with the elevated in year, across installment completion be quarter transaction QX taxes million our to were flow from year, for reflecting and adjusted taxes

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

Operator

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

Drew McReynolds

morning. Good very much. Thanks Yes.

recovery for timing of the piece? you XXXX, outlook in respect in ARPU you any out in or And Is thank drill comment on Just bit the embedded and then little that specificity Shaw around terms assumption down for regulatory can can secondly, or Tony, roaming underlying with there just the roaming the with you on just excluding a in provide of growth trends a couple that commentary the what’s decline various approvals? terms ARPU me of to transaction. gate the general of here. for the

Tony Staffieri

Drew you, for Thank the question.

the regulatory I various of or work relating can expect, with you share to would bodies not fully of process, application. the engaged There’s a facts to that. as disclose our terms about teams are with our and various In the requests lot discussions data through you

you your relating guidance. let I’ll we terms be was closing happen in QX terms that’s Paulina what question in of some included walk to at It’s probably point is in timing, through However, timing, agreement. the on that then is in in for of for provided the to could XXXX continue our confident Drew. roaming, process I all going and our And as expectations and in XXXX to say our

Paulina Molnar

Drew. Thanks,

In continuing be roaming. will there that assume the improvement terms in to of some the ARPU, we’re

at As we I said, XX%. exited the year

improvement range hopefully a with average rest how cautious data and And some that I the year, So that. we’re plans ARPU, will as in COVID that But XX% the the we just we into do increasing. impact, then bit of see better further than as the tier will help. hopeful but said, exiting an we’re next about hoping see little will still

improvement And as continue so add some there’ll there we the be customers. quality to phone high

Drew McReynolds

Thanks terms gotten one that. environment that just just just to for overall quick manage a Rogers Then question there last ability just of out I’ve the inflationary Super. the Okay. in recently environment. inflationary one, through for

be that’d Just Thank talk you. to great. that,

Tony Staffieri

team throughout terms equipment. playing equipment But to captured in network secure Thanks, outlook The in of have to. that Drew job but waiting And I issues we in our a help bigger Certainly, well that’s on that. around say, particular we business, through with look our us in some procure chain Paulina supply expansion can in with to our than investment spend. speak rather that, as been the see XXXX. and wouldn’t to as costs good network trying of about to plans in earlier, I talked various really our that clearly as respect that did particular, of handsets and

So to would the deliver net pleased But say structure we with the intend way now benefits out. we have reflected that what pressures. outlook I that’s in cost inclusive see as on inflationary balance, playing they’re of we and

Drew McReynolds

Thank much. you very Great.

Paul Carpino

Thanks, Drew.

Next Ariel. question,

Operator

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

Vince Valentini

guidance much. at to bigger one on I slightly throw the very them I’ll picture maybe then clarify all hoping Two Thanks things was and question. you.

positive, you are assume some $X.X there’s billion, would I’m then bunch think to the your expecting the I on you operations even mentioned $XXX Shaw expected to I positive of there or there’s that own of using the can tough Is past just synergies announcements you to of already benefits, wins things when if I any been contract incremental any and hinting ride if some you at? coming. the million couple you in and maybe projects? questions media. it’s one million synergy reflected you’re if $XXX some any not win bit Second be wondering to of rollercoaster say, doing side $X XXXX, may to best implement the better the mean, a is expecting government give sort year. you’re picture In to those and that learnings of rural obviously And small make negative guidance XXXX execution deal that of to I subsidies? efficient. predict. if Is with anywhere was close your of practices outlook what that back us CapEx Are able before years more terms closes? billion you’re be million, you getting things start those and scale these on more a the on thinking of deal, be on but EBITDA expected through $XXX you’re assuming of of it down that to cable last mean, from of getting some cable a bigger that or because plans for you granular on you

Tony Staffieri

Yes.

we’ll – cable terms with in start work question on of I don’t backwards why execution. your So our

Shaw I engage we’re can from And the allowed bet with You know of with that There’s to result chain. as to from we’re business. extent And we collections, the best about a think call we Shaw the the up what worlds. as regulatory in both to well execution many sales does what well as on through are there you coming and we’re would Rogers things practices. that whole their cable work the process to some everything of everything can the looking things integration, does at

And see those go so U.S. what and through what paying to course as in our other the peers of attention plans benchmarks thinking predominantly we’re our about best in we we practices in frankly.

that. on billion to one sure the can for that you very that. better at the is about talked $X timing, so the And we we’re be And and And as we’re synergies of as you we’ve us continue and concerned sooner, bigger far looking question focused of as be obviously. all

circle And we’re our your but is what we to media only number to absolutely business. you beyond answer grow that focused so In where we the that not were, that as question, that’s the intent quoted, to on. get side longer-term

sports assets And are business. centered that will continue we’ll media to and monetizing a clearly be that. growing on and is focus Our around

about The the in at comments year Jays going changes attendance as that able continued the we’re around trajectory we’ve my to various we’re reflect games. we’re XXXX I the there, at. good fairly have this uncertainty making relating attendance, assuming to have With pandemic. the really confident that be to And comments, of been said the good

that’s the so a And you look amount as at material business. revenue media

that’s going of out. maybe of have pandemic to a bit an and of in – lot a on impact depending plays an how And impact the so terms

uncertainty, finally around uncertainty let on not asset I’ll our provide of the ability to quality the much and that guidance, around there. then execute cautionary color some really And so is so that language around CapEx. Paulina any And

Paulina Molnar

programs the that. the get net that would terms government the $X.X in provided against we’ve subsidies does asked to that of we include and in we anticipated you CapEx with $X that So the billion the about billion that it

Vince Valentini

you. Thank Excellent.

Paul Carpino

Thanks, Vince.

Next Ariel. question,

Operator

Please ahead. next Barden of America. Bank comes from question Our of David go

David Barden

Hey guys. much the Thanks for so question. taking

guess, again CEO you’re questions the to rest congrats bringing in. the on of permanent First, I two could. I position and Tony if the team

What The lot is and talking closer that entails. come the been of as opposed kind are XG philosophy of Thanks. the opposed to on for it’s you XG? how intrigued could think are the – first return to I years monetization. the that needs your investment? as to how that to to to leverage about We’ve feel. I’m this sorry, they dig and it kind we deleveraging. for question, transaction is the you on And And of that has about of about wondering of a but second I Shaw a like portfolio a capital Cogeco, the new actually into company asset example one an might bit, on applications Lake team that wanted if a XG the revisit then esoteric kind was build way into that by Kirkland of money goes accelerate that? then as the the the tower much Kind making Jays, you represent ways little Gold make what one is kind

Tony Staffieri

present to And couple respect bottom have Thanks. going accretive say, terms enable. cases to again earnings of use disclose I’ll asked example accretive is can and start of net the each is the and I’m particular through comment with me let economics, going it going what say our a the going them. to to a is you, of we’re at XG. to basis. questions. the in economics just things about. and that our the to the you But speak the tell you accretive that on I classic revenue, solutions some that of this Jorge but Dave, of not for A I’ll instance, XG Thank with value to

Kirkland. of a would between and partnership I really call joint a it’s good so And example us what

all So But that’s about case. I can talk use I the don’t about probably let Jorge the economics. why say

Jorge Fernandes

of first above project I’ve capacity. of the XG, or The a Great as beyond is would these in morning. of with what We just capabilities XG network a of are as and really question. said course, for that reason, capabilities Kirkland’s virtual a the network a number speed for started service number where all, foundational a this good has Dave, private past, brings future. times new building co-creation agreement I we and the new consider

vehicles, is of or at improving that capabilities around with everything mine for anything other that we’re and compute, the smart private leveraging sets customers. private the So we’d edge that starting to this equally low really case autonomous with think what maintenance, for for else mining. digital the to the our This what really next-generation other around it’s of the and connectivity network, But really ability mine a about And call they mining scene now here, latency, provides can the automation the of network any operations. their level a be deploy BXB this the looking applications build services of security the I that demands. in applied think thing about some

for is is then future talked the see really this service developments about And in the really technology XG. as XG. network development used a this And new partnership so as gets that XG we a with features. of foundational brand the of past We’ve how a co-creation with new

build is example would we great to use applications then this other foundational of on. this so And work how a

Tony Staffieri

And Thank Dave, you, other monetization to assets. some and relating asset then Jorge. your question, of our first

know post-Shaw think really our each our sharing significant – that businesses, it’s each be Let about have And a businesses of of we in may of it’s the question as how in our and asset wireless as start. monetization important to reorganize note been media. a It’s not to looked total valuation. worth businesses. it going me your of terms of cable our cable’s core good we’ve to question, but you portion And all

includes a each return including scope end responsibility. accountability gone down everything capital P&L in each businesses. you not call businesses. terms process to and as also leaders capital, invested would of But end Accountability only of through in those And I look of on of full, so flow what it to cash full working the of we’ve and to those is

accountability those accountability metrics. shifting full our So is to and performance to framework deliver that on

fixed-wireless looking comprehensive have And what Kirkland to including number the returns to more as talked in that in near-term much levels like everything as that relative including so investment at put homes look about. of what we we look expect should past. a investments homes view we we past, and we to well of see into and expect the good access, was as of get share capital – But long-term. in you a to the a money us growth want example there we’re on in more return XG proper a the invested growth cable, expansion, on previous for is

cable footprint and really so, going growth things, us, going our only forward having as higher from two to a share consumers but additionally, and from from And from ARPU more businesses not come growth said, that. in is higher volumes through buying services fair I

isn’t that for each clear terms that the Jays, to – asset. them. And have, other terms to surface of be the right about in the I’ll through of strategy we’ve we always ability In us of but right of now, the a go sale assets for talked value,

real in real significant And we intent together terms Shaw. And to estate. with amounts, don’t currently. have as that would we asset come know have the other and Cogeco excess especially be will we so We sell of an assets estate

years so we’re term a in et say approach through And it terms the savings. longer-term, cetera, to terms what what’s of probably type estate. few monetize b, of take a also synergy sales, monetize not but in financing period few I of a potential longer working real but months a that’s And of it’ll a, to best when is

that hope in thinking terms about of monetization. we’re how so And helps asset

David Barden

so Thanks again. much, Correct Tony.

Tony Staffieri

Thank you.

Paul Carpino

Dave. Thanks,

Next question, Ariel.

Operator

question from ahead. Scotiabank. next Our Fan comes of Jeff Please go

Jeff Fan

Thanks. Good morning, everyone.

an on that related us on give the transaction. the Drew plans rising timing rates. guys the postpaid, Wondering Maybe the going Just disclosure. up on results, what’s financing about to looking bit the rates quarter just disclosure can prior the phone inflation, if nature what to on future the up-on, directional related compared saying are and Wondering can as to you of things back Shaw at the it’s to can – the opposed follow any to periods. a Shaw? a market you And if you churn phone to great and again then is then if and of extent QX this brought share update about today you just one share? and in there’s see

If be that you Thanks. can share great. that, would

Paulina Molnar

I’ll a Jeff, to first. stab With that take answer the at phones, Okay. regards I’ll maybe one those.

today, restating our prepared We’re to so disclose will not churn be we numbers. all

to forward get And some about that there talk and so quarter. look line next And we in more we’ll for everything so can that.

of just $XX In financing and between billion anticipate entered committed also We terms that we sufficient deal into. have senior $X of to credit billion may that the and/or Shaw in the committed bank term facilities subordinated issue that acquisition close Shaw we have we our facility the place notes. we bank have committed some of

notes subordinated we quarter, already the fund spectrum. to in some that our did saw You

some in Shaw closing. prior the facilities more So do replace bank of prior or to bank to committed XXXX will – the all some credit the that might and we

to be the to rates. short-term going the market very regards the We’re and monitor interest opportunistic just in with

to interest that into some rate of interest rate we swaps entered billion do $X the have have. portion of We risk hedge

come So more to on that.

and some XX to five varied have bank shorter term at of term, to looking look We’re years. longer durations debt to

varied So we’ll have portfolio. a

So we’ve about plan. really can’t plans to now. – tell much got you a We right talk the too

in we’re Given that still regulators. the discussions with

Jeff Fan

Great.

in was swap, Was when that that or rate entered? before that that? QX interest the On was

Paulina Molnar

them entered last We late into year.

Jeff Fan

Okay. Great. you. Thank

Paul Carpino

Jeff. Thanks,

question, Ariel. Next

Operator

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

Aravinda Galappatthige

questions. Thanks for my Two morning. taking me. from Good

side? the make that headwinds, Kirkland year of how broadly secondly, well sort you. there’s little well. on know you the further? Firstly, XXXX more building sort subsidy of Tony, a as And perhaps some as Lake. the of see one and revenue But one. That’s in I some progress service know some of well. the device that that on had can long sort sort of performed question talk upside year don’t service just and that know know cost there’s maybe you of on objectives you the EBITDA your wireless even But around then sort that’s even bit achieved BXB the be then discussion on a sort the outlook see front? to perhaps lasts. Thank I number to through your on of of full the you sort towards perhaps of revenues relief front results Shaw Can front, of I roaming the talk are of your within in how XXXX. part latter can more recovers to of the I movement acquisition what what get to broadly? from plans BYOD, as you Or tailwinds

Tony Staffieri

the Thanks start Again, the question. Aravinda part for with of the I'll second question.

as be not a Shaw, terms this national are able on we've In in a the important wireless wise, is but being wireline cetera, about factors pricing we have see is of huge side now for only national to before of us, that which to spoken opportunity and number both with of the SLAs, generally important of provide, customers. to a terms BXB we et terms going can in offering

be question so to national relative it that going bit business looking small between in little revenues. practice to us of call to and best really see that in and We And not space mid businesses. – to the the But look in much are earlier terms we're what performance terms relates forward only as we a was but very for of the would to that in participating smaller raised us Shaw we synergistic some customers space.

revenue speak be billion of synergies, for opportunity. on the And about the include that we're side. not dollars are we so anything excited of to largely just clear. those And When do cost quite

it's cautionary XXXX come So on side we be just them to I then to enterprise see say to want together, be and revenue as bit to in the those and expect a predominantly come that not we think realistic. on in synergies beyond but overcommit, fair and this

to don't I for but expectations that, us said, I overset as want on so And clearly engine a post-close. growth material

more year, the on service of as we grow revenue The back think of a other things. as question generally few certainly about half will a result the wireless,

impact we're X% of to were think growth see what the we in in backdrop. headed we X% healthy once which is everyone terms healthy. we think We'll the industry. see to very growth industry on very underestimate of growth, continue look XXXX. a between, healthy to see we reports industry And volumes as what XXXX, our as we wouldn't for in market I rates a so clear But it's somewhere And pretty

with ease on but Paulina said, what revenue a pandemic that so things revenue it'll we're share the and see trajectory that good describe our And in as as expect depending of that, we driver good on we restrictions, trajectory fair to participate a good we have we as grower. as think help, service Roaming we and a to come going of on as out travel and on up, that. is

For at Paulina we the almost where from XXXX. as to recovery year, said, we're full be revenues roaming looking XX% for used in

on but so see upside XXXX as were potential we it comparative frankly risk, upside, numbers for although more some downside balance. XX%. is there for And there more is The

in driving you piece. monetizing interesting of more in particular soon we're usage in increases fairly prudent today, on unlimited that. and we the that's in growth year-on-year growth pandemic good usage. important sit what customers in buckets we'd at our cases estimating XX% in, and user usage. of And wireless in come and clearly, So we've spoken per terms we've the out we've that, sit in are are really that those basis. use think It's and as in to a even and And XX% about And higher this than rates the been as data then see really before,

to for and and case as will be tiered WiFi. unlimited plans are data resume Difficulty] more of [Technical growth good compelling seeing we're activities so plans and in-home particular outside home And higher in the businesses and the moving travel, consumers and use

buckets ago, terms about when cost that. [Technical sort investment, in handsets frankly as are those we good half the we certainly efficiencies quite We of subsidy but pricing that's business. a as So an of it you saw to of that look to at in reduce well an we amount us used say, would moved industry the timing Difficulty] in cost When was that to good in a the have in as a years handsets the the of customer our OEMs. incentives see though, the big think And we devices, of really million had industry. as we the I moved to and there to industry substantially the customer cost is from as we to what we as terms movement subsidy on subsidies program the a handset QX, get net that experience of somewhere and range churn. two opposed as on financing about $XX

but significant ability I grow would as to on that we cost so to that what EBITDA a being XXXX, helps. describe our the hope up in expect And think, down, drag equipment to don't go us and as I see net

Aravinda Galappatthige

you so Thank Absolutely. much.

Paul Carpino

Aravinda. Thanks

Next question, Ariel.

Operator

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

Simon Flannery

back Thank of priorities. comments Tony. to opening some Great. about you go to your wanted very much. Good your morning, I

that? couple into of where more that the leadership flagged you've made get service. about and Could you go-to-market senior a little customer the You you I experience, accountability, changes. And areas guess, a talked bit the really customer the some

organization, should is Thanks. that is complete changes those sort how finished the drive that there until see Just we areas? to Shaw What that of now going in is we've integration? those

Tony Staffieri

Thanks Okay. question. the Simon for

business, we're and out around if two long-term, continued networks, one going priorities think of don't go-to-market, in about we to of slowly quite have terms In customer we business, networks And sure is look, our well. we we things this them investment want leading as make experience frankly. then of get

state plans roadmap to growth to we both continue to wireless sure and the got CapEx the lead want we and in And we to that. obvious, cable. make so we've ensure think And

more think each way in the how monetize we cable businesses And see in second quite of do want home in cable the growth part so we frankly. our our do to is about business, accountability participation and wireless investment? we what that The is and

in subscriber being As the do the footprint. really we speeds And said, we of terms can look across and our transparent and not we internet additions fourth better happy to performance superiority entire with quarter. I I'm QX in our blunt, given think product results, we're of as

can't footprint can our entire entire wireless as the said across gigabit access As we significant which our wireless in of is we before, we've across today. the we the installed have opportunity offer competitor as have fixed there speeds additionally, footprint, one footprint, And well.

in net And in around in execution so results adds in delivering our those as terms come products but as in business, on around cable our the as our to we that early expand And share that the sales the certainly QX we internet, home you'll through. start coming around see QX of to start then QX, and program, see see in perspective. you'll of disclosure predominantly that from tangibles whole space, a

look churn In terms our overall metric in clearly, well. wireless, but as the of customer cable in are of rates at byproduct we experience, business each

of going for make allocation about choose the so priorities. material and reason difference And this that's so, a let's in putting leaving on capital in money then the it so for very think priority we're not focused focused materially a about customers experiences capital that customer? we on, that's get customer is experience for the we really quickly. invest to to the how accountability it's issue, priorities Rogers and improve the how we're and that program, if the That's to if to reduce going And they our And those focus. and is that think

Simon Flannery

second given broader the are you the one, how And then brands the brand? merger, thinking about

Tony Staffieri

I think say and we the in the that brand of both And customer consumer in execute. Absolutely. experience an fundamentals something as is businesses outcome we would about

very Shaw, our of proposition whether thinking it see of as for And only with is Fido, integrate want the evolution to we it period marketplace we're over in cetera. about clear a across of with Rogers, nation, And can brand be be very to articulate value we the brands, expect clearly time. each brand what consumers et but Rogers and so about you not Shaw, the the the the

you'll one that call as be terms out. the be not day date. one, appropriate day on will and what see It to of the at simplicity to be expect we evolution expect an opposed may So in play close brand timing time. one or And the

And we have and I to that changes, In I home any confident talent we the I'm to talent short that is thrilled to as business and make that make you clearly, media. time continue is, look the to as at think to up changes. And what wireless really should now improve to what's what across leadership each in ensure continues. call our right. expect and term. in very have our We'll changes our longer our period terms think management and made performance do But are about that in new with of business the of we we we in our continue any confident we've execution ability in concerns we're we certainly have progress to leading organization, but depth answer I'm a near-term what of progressive that you post-Shaw can and getting in execute progressive we you're and the execute as to Shaw, frankly need of

Simon Flannery

Thanks lot. Okay. a

Tony Staffieri

you. Thank

Paulina Molnar

our would additions Difficulty] those This of be about fixed [Technical wireless. quarter, one-third

can with good continue and see really ramp you we’ll there a So up that.

Tony Staffieri

Today, our the consumers our areas And that and in of wireless terms call enabled type for today. in Tim, we're of national said, would fringes within we about we've or cable of fixed focused network enable the we I rural think how entire wireless market we access, as what for where network service operate to businesses.

together we prize play expanding bay is in business. that that going we the Shaw area us how go-to-market first serving with So to is and of as that rural a if first is surrounding Clearly, our fiber east, it look will for think we area, coax largely Ontario largely to terms customer or come about have it. the clearly in or

they they XX fixed in that be where that have lower access as of access opportunity to about service able think largely are generally service we an fixed so immediate no or have download provide service wireless provide and to megabits up speed. speeds much places And to wireless will

robust that in then a that. service hyperscalers video can And it's question and well. include last offerings I'll quite your part as to provide on Jorge offering few be of that and and will And relates comments to the a ask so we'll

Jorge Fernandes

Good morning, Tim.

whether that and have we strategy cloud to terms allows is have we always thing or very close maintained to the maintain First there, XG hyperscalers, the the the good staying very the are of that and multi-cloud a in with a working a of relationship in closely of understanding us we of particular [Technical which just looking ones very We extension will strategy, in opportunities three product it's when as mobile edge out a makes very or in closely, the service. – services main all working together, future them we've a with as terms they're been Obviously, we're doing terms at core and Difficulty] following and work it network compute. as the with sense to [Technical Difficulty] core we this see providing build so. do

Unidentified Analyst

Thank you.

Paul Carpino

more time Thanks, Tim. two Ariel, questions. for we have

Operator

next David our from of McFadgen go comes Cormark ahead. Certainly, question Securities. Please

David McFadgen

questions. of you. Thank couple a Yes,

First all, congratulations, of and on CEO. appointed just being as President Tony,

internet you'd wondering pretty was don't I wondering us give wondering your It this, you of could yours. your just if us business Thanks. comment you cable And wireline I I on just X%. network if strong Shaw's an give if quarter, but I CapEx XXXX, secondly, was Difficulty] for was subs. CapEx, down was CapEx, you last Difficulty] protect growth. when the I versus [Technical look for see the wondering, the the on do quality idea know on and I idea at then outlook can [Technical on was was an Just

Tony Staffieri

questions. XXXX you asked. for on amongst XXXX. the me speak comment business will But some versus and the cable a you Thanks, and bit questions units, Paulina the wireless cable let or of CapEx other walk of David the relative the to through

team The a in as was do space. very maintained a amongst Let quality talented clear work in has there to cable be and strong – organization this very Difficulty] Shaw a through And we and has built we a a that network. cooperation look [Technical fact as me operators naturally, team there's result talented the at CableLabs. already good the

from possibilities we're very And grow standpoint, so very the will have obviously we how the again, we working discuss are to legal very forward. our are about future, aligned what networks strategy with the together of on going in forward We're with talking we closely line develop our teams. but confident a that and allowed going

David McFadgen

Okay. Thank you.

Paulina Molnar

CI also have increases to is the that And networks. address question our going up what in of Dave, more just CI so XX% overall given see to spending increase. the mean, envelope said I cable, of overall. in Tony on and the you just ratio both we capital terms wireless cable expect we from XX% And will

but expect go So the cable see the we it uplifts more we'll with XX, monitor on doing spending service CI increasing. you'll that the the XX, range here, could ratio do And will range. we're expansion, in thinking that as we in networks, the be you'll see that but and We're be XX increasing. specifically

David McFadgen

Okay.

both to in don't and increasing increase you like, give can a just know. So interesting basis. would how in cable I us much on it if wondering cable detail, but wireless I'm percentage that know

Paulina Molnar

Yes.

be do will Just Shaw with remember that we together come that we once updating.

with first Shaw. So will once the for part guidance be and the the the capital come number year. relevant we'll spend updating be the together we only do of And

David McFadgen

Okay. much. Thanks so

Paul Carpino

Last Thanks, Ariel. Dave. Great. question,

Operator

comes question Desjardins. of Please from Jerome final go Our Dubreuil ahead.

Jerome Dubreuil

for squeezing me Thanks morning. in. good Hi,

talk then from And First the show one wondering up and that's and commented following I'm of is years times, often of this many Jays, you're unknown wondering to attendance you full what already standard that’s terms that the Blue over investment hear I baked only on are then, be on good will variable your about DOCSIS benefits the from And and would year. the if the you. what's publicly. in next intensity assumes also government in maybe of expecting that X.X, it's be to that first meet I'm but expect allowed how you the probably the this OpEx. on Thank this have capacity one all marginal that you a would required standard in, the guidance, the you the to how

Tony Staffieri

And Thank ask you, map to we've Jerome. to that. X.X the Good talk Jorge DOCSIS the about then questions. Paulina assumptions address will made. talk I'll road about

Paulina Molnar

Difficulty] the assumed the Jerome would the and attendance. terms there be that [Technical We attendance of return Difficulty] at Centre in of Roger [Technical Blue Jays in-person

Operator

Difficulty] for may disconnect lines. [Technical have your day. pleasant a you Thank participating and

Rogers Communications (RCI) 27 Jan 222021 Q4 Earnings call transcript