- Shares in Rogers Communications (RCI.A) have jumped today following a steady recovery from the hefty impact of COVID-19 earlier this year
- For the third quarter of 2020, the company reported a 14 per cent drop in earnings, from C$593 million in the same period last year to $512 million this year
- Total revenue also, but only by two per cent, from roughly $3.75 billion to $3.66 billion
- This compares to a 53 per cent drop in net earnings and a 17 per cent drop in revenue during the second quarter of 2020, which saw the greatest damage from the COVID-19 pandemic
- Despite the improved performance, the company has elected not to re-issue its full-year guidance for 2020
- Rogers Communications (RCI.A) is currently up 5.93 per cent to $57.31 per share at 10:10am EDT
Shares in Rogers Communications (RCI.A) have jumped today following a steady recovery from the hefty impact of COVID-19 earlier this year.
For the third quarter of 2020, the Toronto-based telecommunications giant reported a 14 per cent drop in earnings compared to the same period last year, from C$593 million to $512 million.
Revenue also fell, albeit by only two percent, from roughly $3.75 billion in 2019 to $3.66 billion this year.
While it's a relatively significant decline, it pales in comparison to Rogers' second quarter performance, which saw a 53 per cent drop in net earnings and a 17 per cent drop in revenue, due largely to the widespread devastation brought on by the COVID-19 pandemic.
The improvement was partly due to the resumption of live sporting events across Canada, which were suspended in March. As a result, Rogers' broadcasting teams returned to studios to provide coverage while audience attendance restrictions remain in place.
Rogers had also shut down the majority of its retail outlets in line with government-mandated procedures. However, as of September 30, many of these had fully reopened with the implementation of public health and safety measures.
Joe Natale, President and CEO of Rogers Communications, said the strong sequential improvement in the company's third quarter results is reflective of solid execution across the businesses, which included continued growth in digital-first operations.
"Our company has adjusted well throughout the pandemic and will continue driving cost and service improvements while we remain focused on investing for the long-term in our leading networks, including bringing Canada’s largest 5G network to even more communities," he added.
Rogers has roughly $5.5 billion in available liquidity, including $2.2 billion in cash and $3.3 billion under its credit facility, which its says is sufficient to tackle any further potential hurdles.
The company also saw fit to fork out $253 million in dividends for the third quarter at $0.50 per share, which were be payable on October 21.
Rogers Communications (RCI.A) is currently up 5.93 per cent to $57.31 per share at 10:10am EDT.