Rogers Communications cuts full-year revenue, core profit forecasts

(Reuters) - Rogers Communications Inc RCIb.TO cut its full-year sales and core earnings forecasts on Wednesday, as the Canadian company's revenue from sale of additional data packages took a hit from customers switching to its new unlimited data plans.

FILE PHOTO: Rogers Communications logos are seen above a booth during the media day at the Canadian International AutoShow in Toronto, Ontario, Canada, February 14, 2019. REUTERS/Chris Helgren

The company’s shares fell 6% to hit their lowest in more than a year at C$6.43.

Rogers said revenue from charging customers for data used above their monthly limit fell by about C$50 million ($38.19 million) in the third quarter.

It expects the revenue decline from customers shifting to the unlimited plans to be spread over four to five quarters, compared with its earlier expectation of six to eight quarters.

The company’s unlimited data plan, Rogers Infinite, launched late in the second quarter, has about 1 million subscribers.

Rogers now expects 2019 revenue to be broadly flat compared with an earlier forecast of 3%-5% growth.

Adjusted earnings before interest, tax, depreciation and amortization are now expected to grow 3%-5%, lower than its prior expectation of 7%-9%.

The company, which has been spending heavily on developing 5G infrastructure across the country, said it added 103,000 wireless subscribers in the quarter, lower than the 124,000 it added a year earlier.

Rogers generated average billings per user of C$67.20 for its wireless services compared with C$66.20 a year earlier.

Excluding items, it earned C$1.19 per share, missing the average analyst estimate of C$1.31 per share, according to IBES data from Refinitiv.

Net income fell to C$593 million, or C$1.14 per share, from C$594 million, or C$1.15 per share, a year earlier.

Revenue fell just about 1% to C$3.75 billion ($2.86 billion).

Reporting by Ambhini Aishwarya in Bengaluru; Editing by Vinay Dwivedi