Rogers Communications Q4 Profit Down; To Repurchase Up To C$500 Mln Of Stock

(RTTNews) - Canadian communications and media company Rogers Communications Inc. (RCI, RCI-B.TO) reported that its fourth-quarter net income slipped to C$320 million from last year's C$522 million, with earnings per share declining to C$0.62 from C$1.01 in the year ago quarter.

Adjusted net income for the quarter was C$357 million, down from C$448 million in the prior year. Adjusted earnings per share was C$0.69 versus C$0.86 in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of C$0.75 per share for the quarter. Analysts' estimates typically exclude special items.

"Our fourth quarter results largely reflect the continued impact of new customer-friendly wireless roaming and simplified sharing plans we put in place several quarters ago which have been dilutive to our revenue growth rate. However, we delivered continued top-line growth in Cable, Media and Business Solutions," said Anthony Staffieri, Executive Vice President and Chief Financial Officer.

Operating revenue for the quarter declined to C$3.243 billion from last year's C$3.261 billion Twelve analysts estimated revenues of C$3.31 billion for the quarter.

For full year 2014, the company projects adjusted operating profit to be in the range of C$5.000 billion to C$5.150 billion.

In a separate press release, Rogers Communications announced that it plans to file with the Toronto Stock Exchange or TSX a notice of its intention to renew its prior normal course issuer bid or "NCIB" for its Class B Non-Voting shares for a further one-year period.

Subject to acceptance by the TSX, the TSX notice will provide that Rogers may, during the twelve month period commencing February 25, 2014 and ending February 24, 2015, purchase on the TSX, the New York Stock Exchange and/or alternative trading systems the lesser of 35.78 million Class B shares, representing approximately 10% of the public float of the Class B shares, and that number of Class B shares that can be purchased under the NCIB for an aggregate purchase price of C$500 million.

Rogers Communications also announced that its Board has approved a 5% increase to the annualized dividend rate from C$1.74 to C$1.83 per Class A Voting and Class B Non-Voting share. Effective immediately, the new quarterly dividend rate will be 45.75 cents per share.

Following the approval of the dividend increase, the Rogers Board declared a 45.75 cent quarterly dividend on each of its outstanding Class A Voting shares and Class B Non-Voting shares. This quarterly dividend will be paid on April 4, 2014 to shareholders of record on March 14, 2014, and is the first quarterly dividend to reflect the newly increased C$1.83 per share annualized dividend level.