(Reuters) -Canada’s Rogers Communications topped Wall Street expectations for quarterly wireless subscriber additions on Thursday, as a growing population and immigrants entering the country drove up demand for its services.
Canada has been seeing a steady rise in immigration as it welcomes more people in a bid to grow its population and boost economy – driving demand for wireless companies’ plans aimed at newcomers.
The country targeted 465,000 new residents in 2023 and has a goal of 485,000 in 2024 and 500,000 in 2025 – a move that analysts have said will benefit the country’s big three carriers – Rogers, BCE and Telus.
The company added 184,000 net monthly bill-paying wireless phone subscribers in the fourth quarter, indicating robust demand for its 5G services. This was higher than analysts’ expectations for additions of 171,830, according to Visible Alpha.
Promotions during the holiday season and customers upgrading phones after the release of iPhone 15, along with Rogers’ expanding 5G reach have been resonating with Canadian subscribers.
Total revenue for the quarter stood at C$5.34 billion ($3.97 billion), compared with analysts’ estimates of C$5.29 billion, according to LSEG data.
The company expects free cash flow of $2.9 billion to $3.1 billion in 2024 and adjusted EBITDA growth in the range of 12% to 15%.
($1 = 1.3448 Canadian dollars)
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Maju Samuel and Shinjini Ganguli)
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