Q1 2022 Rogers Communications Inc Earnings Call
Speaker 1: Thank you for standing by. This is the conference operator.
Operator: Thank you for standing by. This is the conference operator. Welcome to the Rogers Communications Inc. first quarter 2022 results conference call. As a reminder, all participants are in listen, only mode, and the conference is being recorded.
Speaker 1: Welcome to the Rogers communications Inc. first quarter 2022 results conference.
Speaker 1: As a reminder, all participants are in. Listen, only node, and the conference is being re.
Speaker 1: Following the presentation, we'll conduct a question and answer.
Operator: Following the presentation, we'll conduct a question-and-answer session.
Speaker 1: Join the question Q. you may press Star than one on your telephone key.
Operator: To join the question queue you may press star than one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Paul Carpino, Vice President, Investor Relations with Rogers Communications.
Speaker 1: Should you need assistance during the conference call, you may signal an operator by pressing Star and zero.
Speaker 1: I would now like to turn the conference over to Paul cararpino, Vice President and Investor Relations with Rogers commun.
Speaker 1: Please go ahead.
Operator: Please go ahead.
Paul Carpino: Thank you, Ariel. Good morning, everyone, and thank you for joining us today. I'm here with our President and Chief Executive Officer, Tony Staffieri; our Chief Financial Officer, Glenn Brandt; and Jorge Fernandes, Chief Technology and Information Officer.
Speaker 2: Thank you, ariel. Good morning everyone, and thank you for joining us. To join us today, I'm here with our President and Chief Executive Officer, Tony staff ierary, our Chief Financial Officer, Glenn brantt, and George fernandez, Chief technology and information officice.
Speaker 2: Today's discussion will include estimates and other forward-looking information from which our actual results could differ. Please review the cautionary language in today's earnings report and in our 2021 annual report regarding the various factors, assumptions and risks that could cause our actual results to.
Paul Carpino: Today's discussion will include estimates and other forward-looking information from which our actual results could differ. Please review the cautionary language in today's earnings report and in our 2021 Annual Report regarding the various factors, assumptions, and risks that could cause our actual results to differ. With that, let me turn it over to Tony to begin.
Speaker 2: With that, let me turn it over to Tony, to.
Speaker 3: Thank you Paul, and good morning everyone.
Tony Staffieri: Thank you Paul, and good morning everyone.
Speaker 3: The thanks for joining us on this very busy day as we highlight our strong Q1 results, update our positive 2022 outlook and hold our AGM virtually later this morning.
Tony Staffieri: Thanks for joining us on this very busy day as we highlight our strong Q1 results, update our positive 2022 outlook, and hold our AGM virtually later this morning.
Speaker 3: As I discussed back in January , the Rogers organization is focused on three priorities.
Tony Staffieri: As I discussed back in January, the Rogers organization is focused on three priorities: better execution across our businesses, increasing our investments in our networks and customer service, and continuing our extensive efforts to successfully complete the Shaw transaction in the first half of 2022.
Speaker 3: Better execution across our businesses, increasing our investments in our networks and customer service, and continuing our extensive efforts to successfully complete the Shaw transaction in the first half of 2020 -two.
Tony Staffieri: I'm pleased to say we made progress in each of these areas in the first quarter, so let me provide some comments on each of the items before I turn the call over to Glenn to provide you with more detail on the quarter.
Speaker 3: I'm pleased to say we made progress in each of these areas in the first quarter, So let me provide some comments on each of the items before I turn the call over to Glenn to provide you with a with more detail on the quarter.
Speaker 3: Starting with better execution. Each of our businesses delired better revenue and profitability than expected. Across the organization, our teams are focused on targeting or accelerating all efficiencies and process improvement opportunities to deliver results that will meet or even exceed the targets we've set for ourselves.
Tony Staffieri: Starting with better execution, each of our businesses delivered better revenue and profitability than expected. Across the organization, our teams are focused on targeting or accelerating all efficiencies and process improvement opportunities to deliver results that will meet or even exceed the targets we've set for ourselves. We're making progress with these efforts and have already started to capture some of those benefits this quarter.
Speaker 3: We're making progress with these efforts and have already started to capture some of those benefits this quarter.
Speaker 3: Our wireless service revenue increased by 7% this quarter as the economy continues to grow.
Tony Staffieri: Our Wireless service revenue increased by 7% this quarter as the economy continues to grow. Supporting this growth was significant improvements in quality smartphone loading, strong churn performance, and continued growth in ARPU. Postpaid mobile phone net adds were 66,000, more than triple the volume from last year.
Speaker 3: Supporting this growth with significant improvements in quality smartphone loading.
Speaker 3: Strong churn performance and continued growth in AR.
Speaker 7: stpaid mobile phone net adds were sixty-six thousand. More than triple the volume from last year.
Speaker 4: Post postpaid mobile phone net adds were sixty Six thousand.
Speaker 3: More than triple the volume from last year.
Speaker 6: More than triple the volume from last year.
Tony Staffieri: Q1 postpaid mobile phone churn improved by 12 basis points to an impressive 0.71%.
Speaker 4: Q1 postpaid mobile phone churn improved by 12 basis points.
Speaker 4: To an impressive 1%.
Speaker 4: And finally, mobile phone. Arpu was a solid $57 and 25% of 3% from one year ago, reflecting continued improvements in roaming revenue.
Tony Staffieri: Finally, mobile phone ARPU was a solid $57.25, up 3% from one year ago, reflecting continued improvements in roaming revenue.
Tony Staffieri: In Cable, we continue to make progress in improving our execution and delivering better performance. Revenue was up 2% and Adjusted EBITDA up 13%.
Speaker 4: In cable, we continue to make progress in improving our execution and delivering better performance.
Speaker 3: Revenue was up 2% and adjusted EDA up 13%.
Tony Staffieri: Cable Adjusted EBITDA increased year-on-year, primarily as a result of our focus on operating and process efficiency improvements at Rogers ahead of our Shaw close.
Speaker 3: Cable adjusted EBITDA increased year-on-year primarily as a result of our focus on operating and process efficiency improvements at Rogers ahead of our shopquo.
Tony Staffieri: While financials are improving nicely here, we still need to deliver better results on top line growth and subscriber additions. But we know what we need to do and the team is doing a terrific job on this journey.
Speaker 4: While financials are improving nicely here, we still need to deliver better results on top line growth and subscriber addition.
Speaker 3: But we know what we need to do and the team is doing a terrific job on this journey.
Speaker 3: Finally in media we continue to show steady improvements coming out of the pandemic. Revenue grew 10%, primarily as a result of higher sports related advertising, and we're targeting positive adjusted EBITDA this year with a return of in stadium revenues for the Blue Jays at our Roger center.
Tony Staffieri: Finally, in Media, we continue to show steady improvements coming out of the pandemic. Revenue grew 10%, primarily as a result of higher sports-related advertising, and we're targeting positive Adjusted EBITDA this year with a return of in-stadium revenues for the Blue Jays at our Rogers Centre.
Tony Staffieri: In Q1, we continue to make the bold investments needed to ensure that we not only lead in Canada but to continue to have amongst the best networks in the world. In the first quarter alone, we invested 34% more than we did last year, and this year, we will spend close to $3 billion in infrastructure investment in this country. In Wireless, we are leading in 5G coverage and performance, and as this technology brings new solutions for consumers and businesses, we will be ready to offer the world-class network that Canadians need and can rely upon.
Speaker 4: In Q1, we continue to make the bold investments needed to ensure that we not only lead in Canada, but to continue to have amongst the best networks in the world.
Speaker 3: In the first quarter alone, we invested 34% more than we did last year.
Speaker 4: And this year we will spend close to $3 billion in infrastructure investment in this country.
Speaker 4: In wireless. We are leading in five G coverage and performance, and as this technology brings new solutions for consumers and businesses, we will be ready to offer the world-class network that Canadians need and can rely upon.
Tony Staffieri: In our Cable business, we'll continue to lead on having the best Internet and TV experience, period. As you saw yesterday, we announced a major milestone in our 10G initiative, where we successfully tested 8 gigabits symmetrical upload and download speeds on our fibre-powered networks. Impressive by any standard, this technology will become available to customers in the not too distant future. Despite this increased investment, our cash flow was strong. We generated cash flow from operating activities of more than $800 million, up 20%, largely as a result of higher Adjusted EBITDA.
Speaker 4: In our cable business, we'll continue to lead on having the best Internet and TV experience period.
Speaker 1: oring things are taking the question So I want to see if you can update us. Just shifting back to the cable side, update us on the competitive environment in retail Internet. But the economy reopening, are you seeing a pickup in the competitive intensity relative versus your telco peersand? Then, related to that, the capital intensity spend in cable stepped up this quarter. I mean, as we're discussing, fiber to the home deployments, the network expansion efforts.
Speaker 4: As you saw, yesterday we announced a major milestone in our 10 G initiative, where we successfully tested a gigabits symmetrical upload and download speeds on our fiber powered network.
Speaker 3: Impressive by any standard. This technology will become available to customers in the not too distant future.
Speaker 6: Impressive by any standard. This technology will become available to customers in the not too distant future.
Speaker 6: Despite this increased investment, our cash flow was strong. We generated cash flow from operating activities more than $8 million up 20%, largely as a result of higher adjusted EBITDA.
Speaker 4: Despite this increased investment, our cash flow was strong. We generated cash flow from operating activities of more than $8 million up 20%, largely as a result of higher adjusted EBITDA.
Speaker 2: As we're thinking about the go-forward and the remainder of 2000 and twothousandy-two. When should we expect these investments in the footprint expansion, as well as what you're also doing on the pitch wireless side, to begin to flow through to KPIs?
Tony Staffieri: Overall, our team's renewed focus on execution and performance is starting to deliver results and puts us in a strong operational and financial position as we come together with Shaw.
Speaker 5: Overall our team's renewed focus on execution and performance is starting to deliver results and puts us in a strong operational and financial position as we come together with Shaw.
Speaker 3: Morning sebestano, and thanks for the question. I'll start with your question on cable competitive intensity in the marketplace. It continues to be competitive, as you would have seen in previous quarters and previous years. I would say the landscape at least in part driven by us, but the market in general has pivoted from Internet only to a whole home solution that includes video that we've talked about, and increasingly you'll see smart home monitoring as part of that, and and so we would describe it as moving to whole home, away from flanker to the premium brand, with continuing promotions in the market on a neighighborhood by neghborhood basis, and so nothing's really changed in that context.
Tony Staffieri: Given our confidence in our assets and our execution, we have increased our financial guidance for this year, prior to any growth associated with the Shaw transaction. As we continue to build momentum, we see further opportunity for industry-leading revenue, profitability, and cash flow growth in 2022 and beyond. These improving fundamentals underpin the opportunities we see ahead to drive innovation and competition with the Shaw business and leverage the quality of these two iconic companies.
Speaker 3: Given our confidence in our assets and our execution, we have increased our financial guidance for this year prior to any growth associated with the Shaw transaction.
Speaker 6: As we continue to build momentum, we see further opportunity for industry-leading revenue, profitability and cash flow growth in 2022 and beyond. These improving fundamentals underpin the opportunities we see ahead to drive innovation and competition with the Shaw business and leverage the quality of these two iconic companies.
Speaker 4: As we continue to build momentum, we see further opportunity for industry-leading revenue, profitability and cash flow growth in 2022 and beyond.
Speaker 5: These improving fundamentals underpin the opportunities we see ahead to drive innovation and competition with the Shaw business and leverage the quality of these two iconic companies.
Speaker 4: These improving fundamentals underpin the opportunities we see ahead to drive innovation and competition with the Shaw business and leverage the quality of these two iconic companies.
Tony Staffieri: On that front, we continue to make good progress towards closing the Shaw transaction. We received approval of the CRTC in March. We have obtained all of the funds necessary for the deal following a record-setting series of debt offerings in the last few months, and we continue to make solid progress on our integration planning. This transaction remains subject to the approvals of two important government bodies, ISED and the Competition Bureau, and as we have highlighted since announcing the transaction 13 months ago, both the Rogers and Shaw teams believe the strength of this transaction is compelling for all stakeholders, especially Canadians.
Speaker 3: On that front, we continue to make good progress towards closing the Shaw transaction.
Speaker 3: We received approval of the CRTC in Mar.
Speaker 5: We received approval of the CRTC in March. We have obtained all of the funds necessary for the deal following a record-setting series of debt offerings in the last few months. And we continue to make solid progress on our integration planning.
Speaker 3: We have obtained all of the funds necessary for the deal following a record setting series of debt offerings in the last few months.
Speaker 6: We have obtained all of the funds necessary for the deal following a record-setting series of debt offerings in the last few months. And we continue to make solid progress on our integration planning.
Speaker 4: And it's against that backdrop that our execution is is performing well. The second piece of it relates to and, and the reason we're So focused on that is: how are we doing in terms of penetration of homes P, passed and why? Don'll talk about our CapEx outlook, But think about it broadly, as we want to increase the number of homes passed and we'll invest in where it makes economic sense to do so, and so this quarter you saw our homes ped increased by 3% on a year on year basis. As we look to population growth within our territory, footprint it's grow at 5%, and so our expectation is to try to have cable CapEx keep up with that demand, if you will, and ensure we execute on the right penetration rates for that increasing footprint. I think that's, I think that's right' channel. I think look, we.
Speaker 4: And we continue to make solid progress on our integration planning.
Speaker 6: And we continue to make solid progress on our integration planning.
Speaker 5: This transaction remains subject to the approvals of two important government bodies, I said, and the competition Bureau. And, as we have highlighted since announcing the transaction 13 months ago, both the Rogers and Shaw teams believe the strength of this transaction is compelling for all stakeholders, esspecialty Canadians.
Speaker 4: This transaction remains subject to the approvals of two important government bodies, I said, and the competition Bureau. And, as we have highlighted since announcing the transaction 13 months ago, both the Rogers and Shaw teams believe the strength of this transaction is compelling for all stakeholders, especially Canadian.
Tony Staffieri: As we move forward, our Shaw acquisition will truly allow Rogers to accelerate innovation and drive competition nationally. Importantly, together with Shaw, we will have the necessary scale to meaningfully bridge the digital divide and do what neither of us could do on our own.
Speaker 3: As we move forward. Our Shaw acquisition will truly allow Rogers to accelerate innovation and drive competition nationally.
Speaker 4: Importantly, together with Shaw, we will have the necessary scale to meaningfully bridge the digital divide and do what neither of us could do on our own.
Tony Staffieri: Twenty Twenty-two is going to be an exciting year for Rogers. I want to thank the entire Rogers team, who have reenergized this organization by working together to not only drive better execution and improve our financial performance but to prepare us for the years ahead. Their entrepreneurial spirit and dedication to our customers will enable Rogers to reach its full potential, and I am grateful for their positive attitude and unified efforts as we strive to achieve our goals as an organization.
Speaker 4: two Y Twenty two is going to be an exciting year for Rogers. I want to thank the entire Rogers team who have reenergized this, this organization, by working together to not only drive better execution and improve our financial performance.
Speaker 5: We are looking to expand footprint where where we can help broaden the reach of Internet connectivity further into rural Canada. You've heard us talk about that for some time and that is that is reflected in the capital intensity that you've mentioned, I think, in terms of driving the KPIs through that.
Speaker 3: But to prepare us for the years ahead. Their entrepreneurial spirit and dedication to our customers will enable Rogers to reach its full potential, and I am grateful for their positive attitude and unified efforts as we strive to achieve our goals as an organization.
Tony Staffieri: Let me now turn the call over to Glenn, who will provide more details on the quarter.
Speaker 4: Let me now turn the call over to Glenn, who will provide few more details on the quarter.
Speaker 6: Thank you Tony, and good morning everyone. Thank you for joining.
Glenn Brandt: Thank you, Tony, and good morning everyone. Thank you for joining us.
Speaker 5: We know here me say earlier. We are confident that we have the best Internet and television experience available to customers over to us to lean in on you know investing in customer service and sales execution to help drive those K P is and so I think you know we're seeing early signs of that. We've seen some in the first quarter and we'll see that continue to build through this year certainly we're focused on it. I don't think there the you know the impetus is investing more in capital spend. It's investing more in customer care and sales execution to drive those K P I results that you've mentioned and so we're on it and and seeing early signs of that more to come on the on the cable investment. You're going to continue to see capital intensity levels roughly at where they are right now rolling forward. I think we still have more to do in terms of expanding footprint and.
Speaker 7: Our Q1 results reflect solid operational improvements in each of wireless cable and media.
Glenn Brandt: Our Q1 results reflect solid operational improvements in each of Wireless, Cable, and Media, underpinned by disciplined execution and accelerating economic growth. This performance is encouraging and is reflected in us increasing our 2022 outlook.
Speaker 6: Underpinned by disciplined execution and accelerating economic growth.
Speaker 6: This performance is encouraging and is reflected in us increasing our 2022 outlook.
Speaker 12: This performance is encouraging and is reflected in us increasing our 2022 outlook.
Speaker 6: In wireless. We delivered very strong postpaid mobile phone net customer additions of sixty-six thousand.
Glenn Brandt: In Wireless, we delivered very strong postpaid mobile phone net customer additions of 66,000, a 200% increase from one year ago. While typically a very quiet quarter, the net additions were driven by a strong base management, low postpaid mobile phone churn, and an overall increase in market activity. Wireless service revenue was up 7% year-over-year, benefiting from higher roaming revenue as global travel continues to recover and from a larger postpaid subscriber base.
Speaker 6: 200% increase from one year ago.
Speaker 12: While typically a very quiet quarter, the net additions were driven by strong base management, low post-paid mobile phone churn and an overall increase in market activity. Wireless service revenue was up 7% year-over-year, benefiting from higher roaming revenue as global travel continues to recover, and from a larger postpaid subscriber base.
Speaker 6: While typically a very quiet quarter, the net additions were driven by strong base management.
Speaker 6: Low post-paid mobile phone churn and an overall increase in market activity.
Speaker 11: Wireless service revenue was up 7% year-over-year, benefiting from higher roaming revenue as global travel continues to recover, and from a larger postpaid subscriber base.
Speaker 7: Wireless service revenue was up 7% year-over-year, benefiting from higher roaming revenue as global travel continues to recover, and from a larger postpaid subscriber base.
Glenn Brandt: Notwithstanding the increased market activity, our churn was exceptional. We delivered strong customer retention this quarter, achieving postpaid mobile phone churn of 0.71%, which is a 12 basis point improvement year-over-year. This has combined to deliver healthy mobile phone ARPU growth of 3%, or a blended monthly average rate of $57.25 per user, and there's still room for more as roaming is currently in the 90% range of pre-pandemic 2019 levels. Additionally, we are seeing further migration towards the Rogers Infinite unlimited plans, which is helping to stabilize our base ARPU in addition to the ongoing recovery in roaming revenue.
Speaker 7: Notwithstanding the increased market activity, our rechurn was except.
Speaker 11: We delivered strong customer retention this quarter, achieving postpaid mobile phone churn of zero- 1%, which is a 12 basis point improvement year-over-year.
Speaker 6: We delivered strong customer retention this quarter, achieving postpaid mobile phone churn of zero- 1%, which is a 12 basis point improvement year-over-year.
Speaker 5: And building out that capability. We will' be doing that across a national network as we come together with Shaw, and so we'll continue to make sure we have the best television and Internet experience across all of our footprint, and maybe I'll leave it there.
Speaker 12: This is combined to deliver healthy mobile phone. Arpu growth of 3%.
Speaker 7: This is combined to deliver healthy mobile phone. Arpu growth of three per.
Speaker 11: For a blended monthly average rate of 57: 25 per user.
Speaker 7: A blended monthly average rate of 57, 25 per use.
Speaker 11: And there's still room for morea's roaming is currently in the 90% range of prepandemic 2019 levels.
Speaker 7: And there's still room for more, as roaming is currently in the 90% range of prepandemic 2019 levels.
Speaker 2: I could quickly follow up I think Jeff asked about it earlier but.
Speaker 2: You alluded to your comments, executing against some of the synergies into the deal closeed. I mean expectations would still be, I think, in your prepared remarks when expectations opp, oed, deal close, still targeting that one billion synergies. So, while you may be, improved a process and the efficiencies into the deal close.
Speaker 7: Additionally, we are seeing further migration towards the roers's Infinite unlimited plans.
Speaker 11: Additionally, we are seeing further migration towards the Roger's Infinite unlimited plans, which is helping to stabilize our base ARPU, in addition to the ongoing recovery in roaming revenue.
Speaker 7: Which is helping to stabilize our base ARPU, in addition to the ongoing recovery in roaming.
Glenn Brandt: Finally, Wireless Adjusted EBITDA was up 7% year-over-year, and Adjusted EBITDA service margin remained a strong 63% in the quarter. The growth in Adjusted EBITDA was driven by the flow-through of service revenue, which was partially offset by investments in customer care.
Speaker 8: Finally wireless adjusted EBITDA was up 7% year-over-year and adjusted EBITDA service margin remained a strong 63% in the quarter.
Speaker 2: Post deal CS on a pro forma basis. one billion is still how we should think about the synergy opportunity. go- yes yes, make think of it in that context- over the over the 24 months post post closing. We're leaning in now and if we can achieve that earlier, we will achieve it earlier. If we can go beyond that, we will. But But think of it in the context of that, in terms of the cost syergy, sopassed channel.
Speaker 10: The growth in adjusted EBITDA was driven by the flow-through of service revenue, which was partially offset by investments in customer care.
Speaker 7: The growth in adjusted EBITDA was driven by the flow-through of service revenue, which was partially offset by investments in customer care.
Glenn Brandt: In our Cable business, we saw strong financial results driven by improved execution with total Cable revenue up 2% year-over-year and Adjusted EBITDA up 13%.
Speaker 7: In our cable business. We saw strong financial results driven by improved execution, with total cable revenue up 2% year-over-year and adjusted EBITDA up 13%.
Speaker 2: Thank y. Thank you thanks bastiano, next questionnaario. Our next question comes from Simon flany of Morgan Stanley . Please go ahead.
Glenn Brandt: Cable service revenue benefited from a modest price increase across our Internet base introduced last fall.
Speaker 7: Cable service revenue benefited from a modest price increase across our Internet base introduced last fall.
Speaker 7: Cable adjusted EBITDA increased by 13 per cent.
Glenn Brandt: Cable Adjusted EBITDA increased by 13%, primarily as a result of improved cost efficiencies, including lower content-related costs, partially due to negotiation of certain content rates with suppliers and overall lower people-related costs. This gave rise to an Adjusted EBITDA margin of 53%.
Speaker 6: Thank so much. Coming back to the deal expectations, you talked about the financing of the deal. You're performing on EBITDA and revenues, So how should we think about the path of deleveraging here over the next couple of years? Or the target still the same, or could you accelerate that? And what do you think in terms of asset sales as part of that mix? And then this: good to hear, we haven't really heard much about inflation or supply chain on the cost side obviously, efficiencies have heped there, but any updates on what you're seeing and how you're managing that?
Speaker 7: Primarily as a result of improved cost efficiencies.
Speaker 7: Including lower content related cost.
Speaker 7: Partially due to negotiation of certain content rates with suppliers and overall lower people relatedst.
Speaker 10: This gave rise to an adjusted EBITDA margin of 53%.
Speaker 7: This gave rise to an adjusted EBITDA margin of 53%.
Speaker 7: Importantly, our current cost reduction activities are being implemented in anticipation of the Shaw clotheed.
Glenn Brandt: Importantly, our current cost-reduction activities are being implemented in anticipation of the Shaw close, where we are targeting $1 billion in synergies for the combined organization in the first 24 months following the close of the deal.
Speaker 7: Where we are targeting $1 billion in synergies for the combined organization in the first 24 months following the close of the deal.
Speaker 5: Thank you, Simon. I think, in terms of the of the financing that's, that's done and so we have a permanent financing in place. The only the room only remaining moving part will be, you know, the the settling out of remedy sale proceeds versus a up to $6 billion committed bank term loan we have in place to round out the, the $19 billion cash purchase price on the deal. So so that has settled out in terms of trajectory for deleavering and I don't think there's there's not really anything to update further than what you've you've heard previously. As I, as I you know, just mentioned, the target remains a billion dollars of cost synergies post closing over over two years.
Speaker 7: On a product basis. We saw 13 thousand retail Internet net, net customer additions in Q1.
Glenn Brandt: On a product basis, we saw 13,000 retail Internet net customer additions in Q1, down about 3,000 from last year. In Video, we saw improvements this quarter on consolidated TV loading to 14,000 net customer additions across both our legacy and Ignite products compared to 12,000 Video losses one year ago. Total customer relationships increased in the quarter to 2,589,000, up 53,000 year-over-year.
Speaker 10: Down about 3000 from last year. In video. We saw improvements this quarter on consolidated TV loading to 14 thousand net customer additions across both our legacy and Ignite productscompared to 12 thousand video losses one year ago. Total customer relationships increased in the quarter to two point five eight nine million, up 53 thousand year-over-year.
Speaker 7: Down about 3000 from last year.
Speaker 7: In video. We saw improvements this quarter on consolidated TV loading to 14 thousand net customer additions across both our legacy and Ignite products.
Speaker 11: In video. We saw improvements this quarter on consolidated TV loading to 14 thousand net customer additions across both our legacy and Ignite productscompared to 12 thousand video losses one year ago. Total customer relationships increased in the quarter to two point five eight nine million, up 53 thousand year-over-year.
Speaker 7: Compared to 12 thousand video losses one year ago.
Speaker 6: Total customer relationships increased in the quarter to two million five hundred and eighty nine thousand.
Speaker 10: Total customer relationships increased in the quarter to two point five eight nine million, up 53 thousand year-over-year.
Speaker 7: Of 53 thousand year-over-year.
Glenn Brandt: Moving to our Media business, results reflect further growth and recovery. Revenue grew 10% due to higher sports-related revenue, including negotiation of certain content rates, while Adjusted EBITDA fell 12%, driven by higher programming and production costs in the quarter and higher Toronto Blue Jays payroll due to timing of player trades. Additionally, content costs were higher in Q1 as sports programming shifted from Q4 to Q1, associated with pandemic-related schedule changes.
Speaker 7: Moving to our media business results reflect further growth and recovery.
Speaker 7: Revenue grew 10% due to higher sports related revenue, including negotiation of certain content rates.
Speaker 10: Revenue grew 10% due to higher sports-related revenue, including negotiation of certain content rates. While adjusted EBITDA fell 20 12%. Driven by higher programming and production costs in the quarter and higher Toronto bluej's payroll due to timing of player trades. Additionally, content costs were higher in Q1 as sports programming shifted from Q4 to Q1, associated with pandemic-related schedule changes.
Speaker 10: While adjusted EBITDA fell 20 12%. Driven by higher programming and production costs in the quarter and higher Toronto bluej's payroll due to timing of player trades. Additionally, content costs were higher in Q1 as sports programming shifted from Q4 to Q1, associated with pandemic-related schedule changes.
Speaker 7: While adjusted EBITDA fell 20 twelve.
Speaker 5: I think that remains our target. You will see us delever on the back of the cost synergies as well as revenue synergies that we drive. You'll see that fall through on on higher earnings, but really that's what we're executing around Simon its' early days we have and yet close the transaction and so more to come on that as we execute. But you will see us delevering continuing a pace. The credit rating agencies certainly are focused on that. I have spent my entire career making sure that the credit rating agencies understand our capital priorities and how we, how we fund ourselves and and so that file continues to to be managed and we're satisfied and happy with where we are on early progress in the second party of our questions, not in terms of.
Speaker 7: Driven by higher programming and production costs in the quarter and higher Toronto bluejay's payroll due to timing of player trade.
Speaker 10: Driven by higher programming and production costs in the quarter and higher Toronto bluej's payroll due to timing of player trades.
Speaker 7: Additionally, content costs were higher in Q1 as sports programming shifted from Q4 to Q1, associated with pandemic related schedule.
Speaker 10: Additionally, content costs were higher in Q1 as sports programming shifted from Q4 to Q1, associated with pandemic-related schedule changes.
Glenn Brandt: We are excited by the full return to sports and hopeful we have full stadium capacity available for our fans at the Rogers Centre for the entire Blue Jays season, and we are excited by the Blue Jays strong start to the season. At a consolidated level, total revenue for the first quarter was up 4%, and total service revenue was up 6% year-over-year, largely driven by our Wireless business. Adjusted EBITDA increased 11% and Adjusted EBITDA margin increased by 260 basis points to 42.5%.
Speaker 7: We are excited by their full return to sports and hopeful. We have full stadium capacity available for our fans at the Roger center for the entire blue jseason.
Speaker 7: And we are excited by the blue Jay strong start to the season.
Speaker 10: And we are excited by the blue Jay's strong start to the season. At a consolidated level. Total revenue for the first quarter was up 4% and total service revenue was up 6% year-over-year, largely driven by our wireless business. Adjusted EBITDA increased 11% and adjusted EBITDA margin increased by 260 basis points to forty-two point point a half percent.
Speaker 10: At a consolidated level. Total revenue for the first quarter was up 4% and total service revenue was up 6% year-over-year, largely driven by our wireless business. Adjusted EBITDA increased 11% and adjusted EBITDA margin increased by 260 basis points to forty-two point point a half percent.
Speaker 6: At a consolidated level. Total revenue for the first quarter was up 4%.
Speaker 6: And total service revenue was up 6% year-over-year.
Speaker 6: Largely driven by our wireless business.
Speaker 10: Adjusted EBITDA increased 11% and adjusted EBITDA margin increased by 260 basis points to forty-two point point a half percent.
Speaker 6: Adjusted EBITDA increased 11% and adjusted EBITDA margin increased by 260 basis points to 42 and a half percent.
Glenn Brandt: Capital expenditures in Q1 were $649 million, or 34% higher than last year, with capital intensity increasing four percentage points to 17.9% overall in the quarter. This increase reflects investments made to upgrade our wireless network to continue to deliver reliable performance for our customers, the continued expansion of our 5G networks, as well as additional cable service expansion and cable upgrades. Cash income tax decreased this quarter due to the tax instalment in the prior year arising from our transition to a device financing business model, which results in earlier recognition of equipment revenue for income tax purposes.
Speaker 7: Capital expenditures in Q1 were $649 million or 34% higher than last year, with capital intensity increasing four percentage points to 18% overall in the quarter.
Speaker 4: Macro supply chain issues, I would say that re at the margin, by and large, our supply chain has improved than we're getting what we need. Frankly, the environment has pushed us to be better at planning and forecasting and getting that- getting what we need on a timely basis, and so nothing there to report a significance. And on the inflationary cost pressure side, we are seeing that in some pocketsit's. A great example would be on infrastructure build spend, particularly on the labor side. We see cost coming up but we're managing it and we'll figure out within our total CapEx and OpEx spend structure.
Speaker 10: This increase reflects investments made to upgrade our wireless network to continue to deliver reliable performance for our customers, the continued expansion of our five G networks, as well as additional cable service expansion and cable upgrades.
Speaker 7: This increase reflects investments made to upgrade our wireless network to continue to deliver reliable performance for our customers.
Speaker 6: The continued expansion of our five G network.
Speaker 6: As well as additional cable service expansion and cable up.
Speaker 10: Cash income taxes decreased this quarter due to the tax installment in the prior year arising from our transition to a device financing business model, which results in earlier recognition of equipment revenue for income tax purposes.
Speaker 6: Cash income taxes decreased this quarter due to the tax installment in the prior year arising from our transition to a device financing business model.
Speaker 7: Which results in earlier recognition of equipment revenue for income tax pur.
Speaker 5: I think one add on for that, I amin, is with the, with the sheer size that we will have, with coming together with Shaw, it is helping us to manage delivery schedules better with vendors. They we had their attention before. We certainly have their attention now with the volumes that we can drive in the work that we have in front of us. Ma sense.
Glenn Brandt: Turning to the balance sheet, we exited the quarter with an adjusted debt leverage ratio of 3.3 times, sequentially down from 3.4 times at our 2021 year-end. You would have seen in the quarter our announcement that we replaced the $13 billion committed bond bridge facility with our very successful Canadian dollar and U.S. dollar bond issue completed in March. We issued a combined $13.3 billion of Canadian dollar equivalent senior notes at a weighted average cost of borrowing of 4.2% and a weighted average term to maturity of 14 years for net proceeds of $13.1 billion, completing all of the permanent financing needed to fund the Shaw transaction and replacing the interim bank commitments arranged to support the transaction in March 2021.
Speaker 6: Turning to the balance sheet.
Speaker 6: We exited the quarter with an adjusted debt leverage ratio of three point three times.
Speaker 10: Sequentially down from three point four x at our 2021 year-end. If you would have seen in the quarter our announcement that we were replaced to the $13 billion committed bond bridge facility. With our very successful Canadian dollar and U's dollar bond issue completed in March. We issued a combined $13.3 billion of Canadian dollar equivalent senior notes at aweighted average cost of borrowing, a 4% and aweighted average term maturity of 14 years, for net proceeds of $13.1 billion, completing all of the permanent financing needed to fund the Shaw transaction and replacing the interim bank commitments arranged to support the transaction in March 2021.
Speaker 7: Sequentially down from three point four times at our 2021 year.
Speaker 11: If you would have seen in the quarter our announcement that we were replaced to the $13 billion committed bond bridge facility. With our very successful Canadian dollar and U's dollar bond issue completed in March. We issued a combined $13.3 billion of Canadian dollar equivalent senior notes at aweighted average cost of borrowing, a 4% and aweighted average term maturity of 14 years, for net proceeds of $13.1 billion, completing all of the permanent financing needed to fund the Shaw transaction and replacing the interim bank commitments arranged to support the transaction in March 2021.
Speaker 7: If you would have seen in the quarter our announcement that we were replaced to the $13 billion committed bond bridge facility.
Speaker 7: Thank you thanks, Simon. Next question: ario.
Speaker 6: With our very successful Canadian dollar and's dollar bond issue completed in March.
Speaker 10: With our very successful Canadian dollar and U's dollar bond issue completed in March.
Speaker 8: Our next question comes from our vinda allipetiga of cannicorcord annuity. Please go ahead.
Speaker 11: We issued a combined $13.3 billion of Canadian dollar equivalent senior notes at aweighted average cost of borrowing, a 4% and aweighted average term maturity of 14 years, for net proceeds of $13.1 billion, completing all of the permanent financing needed to fund the Shaw transaction and replacing the interim bank commitments arranged to support the transaction in March 2021.
Speaker 6: We issued a combined $13.3 billion of Canadian dollar equivalent senior notes.
Speaker 9: Good morningthanks for taking my questions. Just wanted to take the the wireless discussion a little bit further. Obviously, looking beyond the near, you talked about sort of five G instesort of continuing increases and speeds and lower latency and, as some of the use cases, instesort of increases as well, maybe talk about how you sort of look to monetize those increased capabilities. I know that in the market we started to see some tiering options as well for speed. Is that the direction you want to go in? Wanted to get your take on how you see that going forward. And and then secondly, maybe just taicking to five G as well on the B 2, B side, any kind of color around, when we can expect to see more materiality on that front on the IoT front or private public Mac And so forth, I know you may have number of interesting press releases of late. Any additional updates would be helpful. '. Going to perure crroion.
Speaker 6: At a weighted average cost of borrowing a 4%.
Speaker 6: And a weighted average term toimmaturity of 14 years for net proceeds of $13.1 billion.
Speaker 7: Completing all of the permanent financing needed to fund the Shaw transaction and replacing the interim bank commitments arranged to support the transaction in March 2021.
Glenn Brandt: Additionally, we issued US$750 million of subordinated notes due 2082 with an initial coupon of 5.25% for the first five years in February 2022, further strengthening our balance sheet and diversifying our funding ahead of the Shaw transaction. Our total weighted average cost of borrowings at March 31, 2022, now stands at 4.2%, and our weighted average term to maturity was 12.4 years, compared to 3.95% and 11.6 years respectively at December 31, ’21. Through these offerings and through our multi-decade track record of prudently managing our balance sheet and capital priorities, the bond markets continue to show their confidence in Rogers and their support for the Shaw transaction.
Speaker 6: Additionally, we issued U's 75 million of subordinated nodes due 20 82, with an initial coupon of five and a quarter percent for the first five years. In February . Two thousand and 20 two.
Speaker 6: Further strengthening our balance sheet and diversifying our funding ahead of the Shaw transaction.
Speaker 10: Our total weighted average cost of borrowings at March 31. twentthousand 22 now stands at 4% and our weighted average term immaturity was 12.4 years, compared to 4% and 11.6 years respectively at December 31 twenty-one. Through these offerings and through our multi-decade track record of prudently managing our balance sheet and capital priorities. The bond markets continue to show their confidence in Rogers and their support for the truck shop transaction.
Speaker 6: Our total weighted average cost of borrowings at March 31, twent thousand and 22 now stands at 4%.
Speaker 6: Our weighted average term immaturity was 12.4 years, compared to 4% and 11.6 years respectively at December 31 Twenty.
Speaker 6: Through these offerings.
Speaker 13: Through these offerings and through our multi-decade track record of prudently managing our balance sheet and capital priorities. The bond markets continue to show their confidence in Rogers and their support for the truck shop transaction.
Speaker 4: I'll start with the second part. In terms of B twov, we're seeing really good progress in terms of our focus there, particularly on IoT. We're seeing growth and attach rates on IoT, So that's coming in nicely. It isn't part of our disclosure yet, but you can expect to see it post Shaw close in terms of how we're progressing on that front and so not a lot we want to say on this call. It LL be future quarters that you start to look at that, when we have something meaningful to say that's relevant to the financial projections.
Speaker 6: And through a multi-decade track record of prudently managing our balance sheet and capital priorities.
Speaker 12: The bond markets continue to show their confidence in Rogers and their support for the truck shop transaction.
Speaker 6: The bond markets continue to show their confidence in Rogers and their support for the truck shottransaction.
Glenn Brandt: Finally, let me turn to our guidance, where we announced this morning that we are increasing our consolidated guidance ranges for Rogers on a stand-alone pre-Shaw basis for the Full Year 2022. We are increasing our total service revenue range by 2 points to an adjusted range of 6% to 8%, up from the 4% to 6% range provided in January. The increase is driven by the positive momentum we are seeing in our business on the back of the reopening and growth of the Canadian economy and the return to travel.
Speaker 6: And finally, let me turn to our guidance, where we announced this morning that we are increasing our consolidated guidance ranges for Rogers on a stand-alone presshaw basis for the full year 2020 two.
Speaker 10: We are increasing our total service revenue rangeby two points to an adjusted range of 6% to 8%, up from the 4% to sixeight percent range provided in January . The increase is driven by the positive momentum we are seeing in our business on the back of the reopening and growth of the Canadian economy and the return to travel.
Speaker 6: We are increasing our total service revenue range by two.
Speaker 6: An adjusted range of six to eight per cent.
Speaker 6: Up from the four to 6% range provided in January .
Speaker 6: The increase is driven by the positive momentum we are seeing in our business.
Speaker 10: The increase is driven by the positive momentum we are seeing in our business on the back of the reopening and growth of the Canadian economy and the return to travel.
Speaker 4: First part of your question related to how we think about ourpu drivers beyond just data usage and absolutely with a functionality that five G brings in terms of not only speed quality but other functionality. And you see it in other markets, particularly in the? U's, and so you can expect us to have value propositions that start to Tier it based on beyond just speed. We're finding is speed is one thing, but the customers are actually interested in other factors like latency and other features, if you will, that that they find a value, and so I think you can expect us to produce that in the marketplace. George spends a lot of time sort of looking at usage patterns and so George, maybe you can provide a bit more color on that. Yeah, thanks areing. You know the work we've bring on a five G recently launched the five stemalone core.
Speaker 6: On the back of the reopening and growth of the Canadian economy and the return to travel.
Speaker 6: Next adjusted EBITDA guidance range is increasing to eight to 10% from the six to 8% range announced in January , reflective of the better execution we are starting to see across most parts of ourbusiness.
Glenn Brandt: Next, Adjusted EBITDA guidance range is increasing to 8% to 10% from the 6% to 8% range announced in January, reflective of the better execution we are starting to see across most parts of our business. Lastly, free cash flow guidance now sits at $1.9 billion to $2.1 billion, an increase of $100 million from our previous guidance range of $1.8 billion to $2.0 billion, largely reflecting the flow-through of increased EBITDA growth.
Speaker 12: And lastly, free cash flow guidance now sits at one point nine billion to $2.1 billion, an increase of $1 billion from our previous guidance range of one point eight billion to $2 billion, largely reflecting the flow through of increased EBITDA growth.
Speaker 6: And lastly, free cash flow guidance now sits at one point nine billion to $2.1 billion.
Speaker 6: An increase of $1 billion from our previous guidance range of one point eight billion to $2 billion.
Speaker 6: Largely reflecting the flow-through of increased EBITDA.
Glenn Brandt: Let me also provide some general transparency on the outlook for Q2.
Speaker 6: Let me also provide some general transparency on the outlook for Q2.
Glenn Brandt: In Wireless, on a year-over-year basis, we believe service revenue and Adjusted EBITDA will continue at a 7% improvement. Wireless mobile phone ARPU growth should be in the similar range as Q1, as roaming revenue is expected to continue its recovery.
Speaker 6: In wireless on a year-over-year basis.
Speaker 6: We believe service revenue and adjusted EBITDA will continue at a 7% impro.
Speaker 10: Wireless mobile phone. Arpu growse should be in the similar range as Q1, as roaming revenue is expected to continue its recovery.
Speaker 6: Wireless mobile phone. Arpu grows should be in the similar range is Q1, as roaming revenue is expected to continue its recovery.
Speaker 10: We've certified all the top handsets in the market and sowhat you're beginning to see with these new capabilityities and now low latency really becoming feature also, as we start to light up the 3- five spectrum and that will be available for wireless enablement later this year, then you're really going to start seeing not just a combination of more spectrum equating to more speed at the standalone cot that we've enable with low latency, and so now you're beginning really to see the possiability to enable features that will differentiate the network for, whether it's network slicing for specific uses like gaming or even things like emergency services and so on. We're now really beginning to have that sort of second phase of the network capability become reality and you'will see more and more services.
Glenn Brandt: In Cable, we are targeting approximately 5% EBITDA growth for Q2. Additionally, we will continue to focus on improving our execution to drive better revenue growth, ultimately by improving our revenue profile while keeping our operating structure relatively flat, the additional revenues will flow more effectively to the bottom line.
Speaker 7: In cable we are targeting approximately 5% EBITDA growth for Q2.
Speaker 10: Additionally, we will continue to focus on improving our execution to drive better revenue growth. Ultimately by improving our revenue profile. While keeping our operating structure relatively flat, the additional revenues will flow more effectively to the bottom line.
Speaker 7: Additionally, we will continue to focus on improving our execution to drive better revenue growth.
Speaker 12: Ultimately by improving our revenue profile. While keeping our operating structure relatively flat, the additional revenues will flow more effectively to the bottom line.
Speaker 6: Ultimately by improving our revenue profile. While keeping our operating structure relatively flat, the additional revenues will flow more effectively to the bottom line.
Glenn Brandt: Lastly, in our Media business, revenue will grow year-over-year, and Adjusted EBITDA is expected to be up year-over-year as well, but still remain modestly negative in the quarter.
Speaker 6: And lastly, in our media, business revenue will grow year-over-year and adjusted EBITDA is expected to be up year-over-year as well.
Speaker 6: But still remain modestly negative in the quarter.
Glenn Brandt: Finally, on cash taxes and free cash flow, we expect our cash taxes to be approximately $145 million, down from Q2 of 2021 when they were $175 million and similar to what we saw in Q1 of 2022.
Speaker 6: And finally, on cash taxes and free cash flow. We expect our cash taxes to be approximately $145 million.
Speaker 7: Down from Q2 of 2021 when they were one hundred and seventy five million.
Speaker 6: And similar to what we saw in Q1 of 2020.
Glenn Brandt: In closing, this is an exciting time for Rogers as we drive improved execution and continue to see the growth opportunities ahead of us. With exceptional assets, a strong balance sheet, and solid financial and operational performance underpinning the Company, we are in excellent shape as we prepare to get together with Shaw. Let me now turn this back to Ariel to commence with the Q&A.
Speaker 6: In closing. This is an exciting time for Rogers as we drive improved execution and continue to see the growth opportunities ahead of us.
Speaker 15: Exceptional assets, a strong balance sheet and solid financial and operational performance underpinning the company. We are in excellent shape as we prepare to get together with Shaw. Let me now turn this back to aiel, to commence with Q ES.
Speaker 10: Hitting the market as the devices become more pervisive in our customers' hands. qugreat color, Thank you. Thanks, arabina Arrow. We have time for one more question, please.
Speaker 6: Exceptional assets, a strong balance sheet and solid financial and operational performance underpinning the company.
Speaker 7: We are in excellent shape as we prepare to get together with Shaw.
Speaker 10: Let me now turn this back to aiel, to commence with Q ES.
Speaker 6: Let me now turn this back to aiel, to commence with qes.
Operator: Thank you. We will now begin the question and answer session. To join the question queue, you may press star then one on your telephone keypad. You'll hear a tone acknowledging your request. If you are using a speaker phone, please pick up your handset before pressing any key. To withdraw your question, please press star then two.
Speaker 9: I think.
Speaker 2: We will now begin the question and answer session. To join the question Q, you may press Star than one on your telephone keypad.
Speaker 1: Will now begin the question and answer such.
Speaker 8: Our final question comes from Jerome to brule of dayr M. Please go ahead, Hi. Good morning everyone. Thanks for for squeezing me in here first. Congrats, congrational results, really impressive, especially on the cable margin front. We've seen a few definition changes. Would you agree that, in terms of ARPU growth, your definition change is slightly boosting the number in terms of growth that we're seeing, and if you agree with that, if you can quantify the impact on the change of growth?
Speaker 1: tojoin the question Q. you may press Star than one on your.
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Speaker 1: Will hear a tone acknowledging your.
Speaker 1: If you are using a speaker phone, please pick up your hands up before pressing any key.
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Speaker 1: Our first question comes from David.
Operator: Our first question comes from David Barden of Bank of America. Please go ahead.
Speaker 1: Bank of America, Please go ahead.
David William Barden: Hi, guys. Thanks so much for taking the questions. I guess, first, I imagine you don't want to elaborate on the reports that one of the pillars of the Shaw transaction would be a sale of Freedom Mobile to Xplornet. But maybe you could give us a little bit of a framework for how to think about what the What the wireless landscape might look like post transaction for Rogers in terms of potential wholesale relationships, competitive landscape, and that sort of thing. The second question, if I could. Glenn, I think you mentioned you've gotten back to maybe 90% of your roaming revenue run rate. If I remember correctly, when this all began, you kind of talked about it being a $500 million kind of hole that was created by the pandemic and then you've been slowly refilling. I know that there's been some rate changes. There's been some advancement in travel activity. I'm wondering if the $500 million number, which used to be the bogey, might be a bigger number now as we think about the trajectory for ARPU looking for the balance of 2022. Thanks.
Speaker 10: Hey guys, Thanks so much for.
Speaker 10: Taking the questions, I guess first I imagine you.
Speaker 11: one is.
Speaker 11: Elaborate on the reports that one of.
Speaker 17: Elaborate on the reports that one of the. Pillars of the Shaw transaction. That would be a sale of freedom, mobile to explore that. But maybe you could give us a little bit of a framework for how to think about.
Speaker 18: Pillars of the Shaw transaction. That would be a sale of freedom, mobile to explore that. But maybe you could give us a little bit of a framework for how to think about.
Speaker 10: Pillars of the the Shaw transaction. That would be a sale of freedom, mobile to explore that. But maybe you could give us a little bit of a framework for how to think about.
Speaker 4: yourown, thanks for the question. In terms of the change we made, what we wanted to do was align our disclosure with what you're seeing in the Canadian landscape on disclosure and focused on mobile phone, and take out some of the noise with respect to tablets et cetera, and so the increase you're seeing of just over 3% on mobile phone arpuit's the same if you were to packetit and do it on the way we used to do it- just postpaid SIM ARPU growth. That works out to 3% as well. So it's the same. Hopefully we've answered your question, But let us know if not.
Speaker 10: What the wireless landscape might look like. Post transactions.
Speaker 18: What the wireless landscape might look like- post transaction for Rogers in terms of potential wholesale relationships, competitive landscape and that sort of thing. And then I guess the second question, if I could Glen, I think you mentioned you've gotten back to maybe 90% of your your roaming revenue run rate. If I remember correctly, when this all began, you you kind of talked about it being a $5 million kind of whole that was created by the pandemic and then you've been slowly filling. I know that there's been some some rate changes. There's there's been some, you know, advancement in in travel activity. I'm wondering if, if the $5 million number, which which used to be the bogey might, might be a bigger number now as we think about the trajectory for our PU, looking for the balance of 2022 things.
Speaker 10: For Rogers in terms of potential wholesale relationships, competitive landscape and that sort of thing.
Speaker 10: And then I guess, the second question. If I could.
Speaker 11: Glenn, I think you mentioned you've gotten back to maybe 90% of your roaming revenue run rate, if I remember correctly.
Speaker 10: When this all began, you kind of talked about it being a $5 million.
Speaker 11: Yes'm not sureir the this defse are my question and then the second one by me. I was wondering if we're starting to see some fixed wireless net add in your Internet numbersyou are Jerome, and so we've. As we stated last quarter, it's a big focus area for us. George spent quite a bit of time throughout Twenty 1, and particularly in the fourth quarter, readying our wireless network to enable fixed wireless access in a number of new geographies for us, and so with that we started executing on sales in the first quarter, and so I would say that ramp up was relative to our core Internet offering light and small in terms of numbers, but we are targeting significant ramp up as we head into the second quarter and for the rest of the year, and it will be included in our cable Internet net adds.
Speaker 10: Kind of hole that was created by the pandemic and then you've been slowly filling. I know that there's been some some rate changes there's. There's been some, you know, advancement in in in travel activity. I'm wondering if, if the $5 million number.
Speaker 11: Which used to be the bogey might might be a bigger number now as we think about the trajectory for ARPU looking for the balance of 2020 two.
Glenn Brandt: Thank you, David, for the questions. Let me start with the second one on roaming and then turn it over to Tony to comment on the first. In terms of roaming, yes, there have been some rate changes, Dave. We're not being that precise in terms of where the recovery and the growth is coming from. I think we are excited to see the return to travel. We're seeing masking and travel restrictions freeing up around the world while we continue to deal with COVID and with waves, and excited to see the travel coming back, both consumer as well as business travel. I think consumer as being earliest and first to recover, but certainly, we're seeing business travel come back. Both the volume as well as those rate increases will help to see further recovery. Over time, you would expect to see growth in that category, and I'm mindful of the fact that we're looking to get back to levels that we saw three years ago. I would anticipate that with the volume of flying, as well as with the rates, we'll see further recovery going forward. Tony? Maybe…
Speaker 8: Let me Thank you Dave, for the questions. Let me start with the second one on roaming, and then and then turn over to Tony to comment on on the first. In terms of roaming yes, there have been some rate rate changes Dave, we're not being that precise in terms of where the recovery and the growth is coming from. I think we're. We are excited to see the return to travel. We're seeing masking and travel restrictions freeing up around the world while we continue to deal with with COVID-19 and with with waves and and excited to see the travel coming back, both consumer as well as business travel. I think consumer has being earliest and first to recover, but certainly we're seeing business travel come back.
Speaker 4: And as we move forward you'll see us disclose the difference between those two I think from a from a personal standpoint and bear with with the short commercial from me here. But I live on a farm road an our West of our offices here and over the last couple of years spend just about every day working from my home office. I don't live in a Rogers territory And my wireline service just wasn't able to handle the data speeds.
Speaker 7: Both the volume as well as those rate increases will we LL help to see further recovery over time. You would expect to see growth in that category and a mindful of the fact that we're looking to get back to levels that we saw three years ago, and so I would anticipate that, with with the volume of flying as well as with the rates, we'll see further recovery going forward.
Speaker 5: Very early on in in March of 2020 kibreg, or Head of of network, sent me a fixed wireless modem of a four G modem. I still use that to run my home office and over the course of two years of video conference and calls, my service was interrupted- a total of five calls through that two yearsthe service was exceptionally good. This is going to be an important part of our our expanding service and bring them to rural Canada then helping to bridge that, that digital divide. We CAn't run wire everywhere. We'll run it wherever we can, but but fixed wireless is a as an excellent opportunity for some areas that that right now we're either run served or very undersserved, and so this will be an important part of that.
Tony Staffieri: On the second part of your question, David, as you would expect, there's not a lot we can say given the transaction is in front of the government bodies. We're not going to comment on any rumours that are out there, as you would expect. In terms of competitive landscape, very similar. What I can reiterate are the Minister's comments that he expects to see a solution that continues to have a fourth robust wireless operator in this country. He said what he said, and so we continue to work with the government to close the transaction, and that's all I could really say at this time. We continue to be confident we'll close this in the second quarter, and that's it on that topic.
Speaker 7: Tony. Maybe on the second part of your question David, as you would expect, there's not a lot we can say and, given the transaction is on in front of the government bodies, we're not going to comment on any rumors that are out there. As you would expect in terms of competitive landscape.
Speaker 12: Very similar what I.
Speaker 6: Very similar what I.
Speaker 12: Can reiterate part of the Minister's comments that he expects to see a solution that continues to have a fourth robust wireless operator in this country and he said what he said and so we continue to work with the government to.
Speaker 6: Can reiterate part of the Minister's comments that he expects to see a solution that continues to have a fourth robust wireless operator in this country, and he said what he said, and so we continue to work with the government to close the transaction and that's all I could really say at this time. We continue to be confident we'll close this in the second quarter.
Speaker 12: Close the transaction, and that's all I could really say at this time. We continue to be confident. We'll close this in the second.
Speaker 12: There way to wait to that the product. Thanks Thank, that's helpful and can dress against. Thank you, jct. Right thanks jome, and thanks everyone for joining us today. If you want to sit in on our AGM, it's available at the Investor Relations ite at our Investor Relations site. Thanks for your time and if there's any followup, please reach out. Thank you.
Speaker 4: And that's it on that top.
Speaker 6: umand that's it on that topic.
Multiple speakers: Okay. Well, thank you, and for what it's worth, I'm a Blue Jays convert, so looking forward to the rest of the season. Welcome aboard.
Speaker 13: ok well, Thank you, and for what it's worth, I'm a blue Jays convert, So looking forward to the rest of this.
Speaker 14: Welcome aboard.
Speaker 2: Thanks David, next questionnaar. Our next question comes from Jeff fanas.
Multiple speakers: Thanks, David. Next question, Ariel? Our next question comes from Jeff Fan of Scotiabank. Please go ahead.
Speaker 1: Go ahead.
Speaker 2: Please go ahead.
Speaker 15: Good morning everyone. A couple of questions on the cable side, if I may. On the operating costs Glen, are you able to help us quantify some of the buckets that contributed to the margins this quarter? I think you talked about some renegotiation of content costs. Can you quantify that and talk about whether that's a recurring item or whether that's more retroactive? And it also sounds like you or executing on some of the cost synergies on your side on the deal. Wondering if you can help us think about you know whether you're actually taking some of those cost synergies even as we speak right now before the deal closes. It sounds like you're running into the deal closing, which is great, but wondering if you can help us understand how much of that is being taken versus how much is left post deal. And then the other, the final vide cable questions. Just on the videal positive net ads. We haven't seen a positive net ads in any quarter in many, many years, So wondering if you can just elaborate a little bit on what's helping and whether that is likely to continue. Thank you.
Jeff Fan: Hi. Good morning, everyone. A couple of questions on the Cable side, if I may. On the operating cost, Glenn, are you able to help us quantify some of the buckets that contributed to the margins this quarter? I think you talked about some renegotiation of content costs. Can you quantify that, and talk about whether that's a recurring item, or whether that's more retroactive? It also sounds like you are executing on some of the cost synergies on your side on the deal. Wondering if you can help us think about whether you are actually taking some of those cost synergies. Even as we speak right now, before the deal closes, it sounds like you're running into the deal closing, which is great, but wondering if you can help us understand how much of that is being taken versus how much is left post deal. The final Cable question is just on the Video positive net adds. We haven't seen a positive net add in any quarter in many, many years, so wondering if you can just elaborate a little bit on what’s helping you there and whether that is likely to continue. Thank you.
Speaker 8: This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.
Speaker 1: Got wrdon.
Speaker 12: Thank you, Jeff. In terms of identifying the buckets and the nature of recurring and otherwise, I think there's a mix across a few categories in there, which we've touched on in my comments and in the release around, you're right, content rates as well as some of the people costs. The people costs, absolutely, will be recurring. The content rates to the extent some of those roll forward, obviously, will be recurring. I'm not going to put any precision around all of that, Jeff. But some will certainly carry forward. You can see not all of it where we talk about a 5% growth rate in Q2, and so that will give you some level of awareness around what portion is carrying forward. In terms of our synergies, we're leaning in on a number of different categories. It's early days, but we are starting to look at preparing with our vendors and getting ready to lean in on day one, or earlier, where we can work with suppliers who understand the size of this Company when we come together with Shaw, particularly on wireline. Early days, but we're starting to lean in on that exercise hard. On people costs, it's twofold. One is just looking at some of our operations and functions and making sure that we are focused on the right activities and that we are properly sized for that. It's also creating headroom for coming together with Shaw and starting the exercise of just making preparations, for when we do close on the Shaw transaction, that we're able to come together with a combined entity that has leadership coming from both sides, and so that exercise we've leaned in on hard. Again, more to come ahead of the transaction and following it, but you're seeing the benefits of that also in the cost reductions. On our Video net adds, that really is coming from just a focus on execution and better execution around customer service, around the sales function, and focused on closing the sales. Still much more work to be done there. Robert has been a tremendous addition to the Company in terms of bringing a strong sales culture into the organization and helping us just redirect some of those efforts. I think all of it is underpinned, though, by what we believe is the very best Internet and television experience available to customers, and so, focused on customer service and sales execution around that where you have the best service, we should be doing better than we had been and then we are now, so more to come on that.
Speaker 6: Thank you, Jeff. In terms of identifying the.
Speaker 16: And the nature of recurring and otherwise. I think there. 's.
Speaker 6: There's a mix across a few categories in there which we've touched on in my comments and in the release, around your right content, content rates as well as some of the people cost.
Speaker 8: The the people couse, absolutely will be recurring the content rates to the extent some of those you roll forward obviously will be- will be recurring. We're not- I'm not going to put any precision around all of that Jeff, but you know some will, some will certainly carry forward. You can see not all of it- where we talk about the 5% growth rate in Q2 and so that will give you know some level of of awareness around, know what portion is is carrying forward in terms of our synergies, where we're leaning in on a number of different categories. We are- and it's early days, but we are starting- we are starting to look at, you know, preparing with our, our vendors and getting ready to to lean in on day one or earlier where we can work with, with suppliers who understand the size of this company when we come together, which particularly unwire.
Speaker 7: And so you know early days, but we're starting to lean in on that exercise hard on people cost.
Speaker 6: It's twofold: one is just looking at some of our, our operations and functions and making sure that we are focused on the right activities and that we are properly siiseed for that. It's also creating headroom for coming together with Shaw and starting the exercise of of just making making preparations for when we do close on the shock transaction that we're able to to come together with, with a combined entity that- excuse me that- that has leadership coming from both sides And so that exercise we've leaned in on hard again more to come ahead of the transaction and following it.
Speaker 7: But you're seeing the benefits of that also in the cost reduction.
Speaker 10: On our video. Net adds that really is coming from just focusused on execution and better execution around customer service, around the sales function and focused on closing the sales. Still much more work to be done there.
Speaker 8: On our video. Net adds. That really is coming from just focus on execution and better execution around customer service, around the sales function and focused on closing the sales.
Speaker 1: In the first quarter. Much like cable migration from the fo brand on to the Rogers brand, in part due to our emphasis, in large part due to our emphasis back on the Rogers brand, and so that migration is happening nicely. But importantly, when you look at the underlying data usage trends, were're back up to 30- 50% year on your growth rates, and we've talked about it before. As we move in and out of lockdowns in the pandemic coming out of it, we see out of home usage spike up and therefore the us case for unlimited becomes much more compelling, and so that's what we're seeing play out in the marketplace, and so I'm quite pleased with that. So at the core, the fundamental ARPU driver is going to be data usage and the demands driven by five G: higher speeds, much lower Lat en CY, etc. So that's what we expect to see play out in future quarters, but the reality is it will be overshadowed by roaming revenue increases for the next whilemedia and then maybe on on media.
Speaker 6: Still much more work to be done there.
Speaker 7: Rover has been a tremendous addition to the company in terms of of bring a strong sales culture into the organization and helping us just redirect some of those efforts, I think you know. All of it is underpinned though, by what we believe is the very best Internet and television experience available to customers, and so focus on customer service and sales execution around that where you have the best service. We should be doing better than we had been, and then we are now So more to come on that.
Speaker 10: rovert has been a tremendous addition to the company in terms of of bring a strong sales culture into the organization and helping us just redirect some of those efforts. I think all of it is underpinned though, by what we believe is the very best Internet and television experience available to customers, and so focus on customer service and sales execution around that where you have the best service. We should be doing better than we had been, and then we are now So more to come on that.
Multiple speakers: Thank you. Particularly pleased on the Cable margin performance. As Glenn talked about, a number of process and efficiency improvements that yielded the upside in margin, notwithstanding the additional investments we put into areas like our call centre, customer service, and a few others. In terms of sustainability, Glenn talked about our outlook for the second quarter, and I think that captures it.
Speaker 3: A top, particularly pleased on the cable margin performance, as Glen talked about a number of process and efficiency improvements.
Speaker 5: That yielded the upside in margin, notwithstanding the additional investments we put into areas like our call centers, customer service in a few others, and so in terms of sustainability. Gl en talked about our outlook for the second quarter and I think that captures it.
Speaker 17: That yielded the upside in margin, notwithstanding the additional investments we put into areas like our call centers, customer service and a few others.
Speaker 12: And so, in terms of sustainability, de an talked about our outlook for the second quarter, and I think that captures it.
Tony Staffieri: On the Video side, as Glenn talked about, it really is a culture reoriented back to the Rogers premium brand, and so what we saw in the Cable business is a very good mix shift from our Fido brand Internet to our full suite of in-home Internet and entertainment, and so that's coming in very nicely. We've talked about it being a focus for us in terms of brand migration, and we're starting to see some strong early signs.
Speaker 12: On the video side, as Glenn talked about, it really is a culture reariented, reoriented back to the Rogers premium brand, and so what we saw in the cable business is a very good mix: shift from our fital brand Internet to our full suite of in home Internet and entertainment, and so that's coming in very lot nicely. We've talked about being that focused for us in terms of brand migration and we're starting to see some strong early sign.
Speaker 2: Through I think think, were. We're certainly in position, we will the Li posit But for the year we're still working through the recovery through co and the ship that the cour through co certainly seeing the resumption of courorts and and our court fu courorts. Second, we're seeing recovery building through the first court and to state that will continue through and for the as well through the, the C and under way now for for the UE J And so we we're confident the we've the best courorts conent to ailable and and we're seeing recovery and TH coming back from advertising around those proproducts's being if and just you know, just genereral pulation, transren and work cheduals. Over the last couple years we all that fact some of the med, particularly across ad station office, return to full time or high model of coming back to the office. We to Pate that that that recovery will continue to. 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Next question area: our next question comes from J market go ahead or the question update the ING back the cable update on the competitive virire and ta Internet that the Con pick in petitive intentensity vers years then to that capital intentity cable. This court cus five the, the point that work extansion about go main 20 20, the exthat that in the pre exexp. Well, you're also the wire ID and the that more. And question. Start with your question: cable competitive intensity in the market place continue to be competitive. You would have seeing in previous courarters and previous years would say the land state we part by the market general ped Internet only to whole H solution that includ V that we talk about increasing C Mar part of that and and so we would discriri moving to whole home way from point to Prem brand with continueing tions in the market on a neigh Neighbor basises, and so nothing really change in that contex against that back that our execution is forming well. 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And so I thinkyou know we're seeing early signs of that. We see some in the first court and see that continue to B through this year, certainly focusused on. Don't think there the know the in is investing more capital spend, invest more in custommer care and sales execution to drive those. I resu that mention. And so we're on and seeing early signing of more to come on the on the cable investment re going to continue to see capital intensity levels reoughly where the are right now rolling for I think we still have more to do in terms of expanding foot print and building out that capabilityity. We will be doing that across and national that work as we come to together with and so will continue to make we have the best television Internet experience across all of our footprint. May there, the quickly, I think earlily. But your Con ecuting some of the ER to the deal Clo expectation, still the I think your propriared expect ationations AL that bill ergies while may be process ition to the deal Clo deal on the bases ill we about the ity, yes it, in that contex, over the you over the 20 for mon post post cloing, we're leading and now, and if we that earlier, we will earlier, if we can go be on that we will. But But think it in the context of that in terms of the energ gener. Thanks Thank, thanks. Next question area: our next question comes from F fin more standly, go ahead thanks, some much. Coming back to expectation, talk about the fin? Ing up the AL forming on the But reven, how should we think about the of verting here over the next couple years that the tar still the same cour ex that what in terms siles part of that next and then the. Here we have inflation or supply chaing on the offficiency, help there. But any up on what re see and Ag ING thanks, think. 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I have exsent my ent carere making sure the courredit R agency under stand or capital priorities and how we we fundunder And so that F continue to be managage and we we're five with where we are on early progress. The second party questionions in terms of supply change would say the marg by and're getting what we need? Frank the vironment to be better planing and four cing and getting that. Getting need on time we basis and so nothingsomething to court knowon the flation cost pressure we are see that in some ckets. Great exexample would be on struct bill SP, particularly on the. We cost coming butwe're managing and for in our total cap exexpen structure. Think one on, for that is with the, the year that we will have with coming to, together with it is helping us to manage to livery cheduual with Enders, the we have the reattion for. We certainly have the attention with the lawumes that we drive in work that we have front of sents, Thank thanks. Next question area: our next question comes from pro coun court ity go ahead, thanks. Taking my question just to take the wire discus, the looking be on the, the talked the five and continuing increases speed and the see and use case creasees. Well, talk about how to want TI. You know the increase ability, know that the market, we to see some ING options as well, that that ment we want to one to get on how see that. And second, the may be just ta to five as well on be to be Con of around we can expect to see more the ity on fron be done. The fr priv, the public and so my may have number interesting pres addition upd be ful exure the question. Start with second part in terms of be the re seeing really progress in terms of our focus, particular on we're see growth and ta ates on that' coming inand ly is part of our disclosure. Can expect to see post close in terms of how progressing on that fron And so not we want on this call be future courarters that you start to look at that. We have something to to the financi projeions. First part question related to how we think about drie, rs be on just stateate use absolute with the functionality 5, br in terms not only spe quality but other functionality and you see and other ketts, particularly in the and so you can ex back to have value proposions that start to Ed on be on be finding is speed one thing but the customers or actually in and other facters see and other features, if you will, that that they find value and so I think you can expect to proproduce in the market place. Jorge, a lot time looking use PAT ter and J? Ge prov. Thanks the on the recently law cour, the five the, the market, and so what you're beginning to see capability law, leg CY to be coming know feature also. We start's to the 3, five pec.t, know that will be ilable for wire ablement the year. 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What we targeting signific am, as we had to, the second courarter and for the to the year will be included in our cable Internet as we move for dis close differenference between those to think from personal stand point with the with the courort commercial from the here But on the farm our est of our offices and over the lastcouple years spend just every day working from my home office 't in gers terr or And my my wire line service was able the hand all the D very early on in in March of 20, 20 PRI or work sent the fix wire less MO, for I still use that to run my home office and over the court. two years of vide conference call. My service was inter up total five calls through. That two years service was exception. Good, this is going to be court exexpanding service and bring them the C helping to that that dig the 't run every where run where over we can. But but fixed wireless an reortity, some area that that right now under So the be important part of that that the proct. Thank Thank that your.
Jeff Fan: Thank you both, and congrats on the quarter.
Speaker 18: Thank you both and cross the court.
Multiple speakers: Thank you, Jeff. Thanks, Jeff. Thanks, Jeff. Next question, Ariel?
Speaker 6: Thank you, Jeff. Thanks thanks, Jeff. Next questionnaio.
Operator: Our next question comes from Vince Valentini of TD Securities. Please go ahead.
Speaker 1: Our next question comes from Vince salantini of PD security.
Speaker 1: Let go ahead.
Vince Valentini: Thanks very much. First off, congrats. Great quarter. Let me start with a couple of a little clarifications. When you say content costs in Cable, I just want to make sure I'm clear. Are you talking just television programming, or would you consider like technology licensing fees to be a version of content as well?
Speaker 6: Thanks very much. Let me first off Congrats great quarter. Let me start a couple of little clarifications. When you say content costs in cable, well'll just want to make sure Y are you talking just television programming or would you consider, like technology licensing fees, to be a version of content as well?
Glenn Brandt: Think of it along the lines of programming content costs, Vince.
Speaker 7: Think of it, you know, think of it along the lines of programming content, cost.
Speaker 19: Right.
Vince Valentini: Great. Also, Glenn, on your 5% reference for Q2 relative to 13% we just saw in the first quarter, I think you guys are generally try to set a bar on your guidance at a level that you know you can hit, and hopefully you can deliver a positive surprise like you've done today. So, I want to make sure we don't read too much into that, because we can all do quick math. If the difference between 13% and 5% is considered to be nonrecurring items, that would be about a $40 million benefit to OpEx, I think, in this quarter. I don't think you're trying to imply that, are you?
Speaker 20: And also going on, your your 5% reference to for Q2, relative to 13% we just saw in the first quarter. I think you guys are, you know, generally try to set a bar your guidance at the level that you know you can hit and hopefully you can deliver a positive surprise, like like you've done today. So I want tomake wedon't read too much into that, because we can all do quick math. If, if the difference R between 13 and five is is considred to be nonrecurring items, that would be about a $4 million benefit to OpEx, I think in the in this quarter. I don't think you're trying to to imply that, are you?
Speaker 23: And also going on your 5% reference to for Q2, relative to 13% we just saw in the first quarter. I think you guys are generally try to set a bar and your guidance at a level that you know you can hit and hopefully you can deliver a positive surprise, like you've done today. So I want to make sure we don't read too much into that because we can all do quick math. If, if the difference R, tain 13 and five is is considred to be nonrecurring items, that would be about a $4 million benefit to OpEx, I think in the in this quarter. I don't think you're trying to to imply that, are you?
Glenn Brandt: I am trying to sort of set expectations that don't anticipate 13%, Vince. Inside that, and so we're saying 5% over to us to continue to focus on execution. We have a lot ahead. We are leaning in on customer service, we're leaning in on other things, and I anticipate those will drive revenues, but they are also going to impact expenses. That's all sort of rolled into that number, Vince.
Speaker 21: I'm trying to sort of set expectations that don't anticipate 13% F.
Speaker 7: And so inside that, and so we're saying 5% over to us to continue to focus on execution and know we have a lot ahead. We are leaning in on customer service, we're leaning in on other things and I anticipate those will drive revenues but they are also going to impact expenses and so you know that's all sort of rolled into that number.
Multiple speakers: Okay. If I can have one last.. We are absolutely focused on delivering results and performance. One last Cable one, I just want to make sure I don't read too much into the 8 gig trial you've been talking about and moving to all fibre in a few places. It's not your intention to shift gears from DOCSIS and go all fibre everywhere on an accelerated basis, is it? You seem to be talking a lot about fibre performance as opposed to your DOCSIS speeds lately, so I just want to make sure I don't misinterpret anything.
Speaker 22: But we are absolutely focused on delivering results and on performance. So.
Speaker 22: Lot cable one I just want to make sure I don't read too much into the the eight gig trial you you've been talking about and moving to all fiber in a few places. Isn't it's not your intention to shift gears from doxes and go all fiber everywhere on an accelerated basis, is it? You seem to be talking a lot about fiber performance as opposed to your doxes speeds lately, So just want to make sure I don't to misinterpret.
Tony Staffieri: Vince, I'll start off and then Jorge can provide some colour. But in terms of strategy, we are certainly not abandoning DOCSIS 4.0. This is going to be a terrific enhancement to what I would describe in places we have mixed fibre and coax, and so that initiative is working well. Jorge will talk about that in a moment. But there are many areas where we have complete fibre, and in those areas, we take advantage of GPON and the capabilities of fibre, and so think about them as working in tandem. We're just practical depending on the area where we have that type of cable or fibre.
Speaker 4: So I'll start off, then George can provide some color. But in terms of strategy, we are certainly not abandoning doxas for doo. This is going to be a terrific enhancement to what I would describe. In places we have mixed fiber and colelect, and so that initiative is working well, and George will talk about that in a moment. But there are many areas where we have complete fiber and in those areas we take advantage of GPON and the capabilities of a fiber, and so think about them as working in tandem and we're just practical, depending on the arearea where we have.
Speaker 3: That type of ve cable or fiber.
Jorge Capelas Fernandes: Hi, Vince. Thanks for the question. Well, that's exactly right. What Tony said, we have multiple tools in the toolbox that we use depending on where it makes sense: geography, age of the cable infrastructure, and so on. As you know, we've been investing in this infrastructure for a number of years now. What you're seeing is that investment beginning to show results and performance. We're very happy with the progress that we're making on DOCSIS, both in terms of what we have available on DOCSIS 3.1, and also with DOCSIS 4, the speeds of that we’ll provide in the not-too-distant future. Essentially, what you're seeing is a combination of all these capabilities come to bear on the market.
Speaker 23: I been thanks to the question. Well, that's exactly right what I said. We have multiple tools in the toolbox that we use depending on where it makes sense: geography, age of the cable infrastructure and so on. As, as you know, we've been investing in this infrastructure for a number of years now. What you're seeing is that investment beginning to showre results and performance. We're very happy with the progress that we're making on doxes, both in terms of what we have available on doxes 3, lot 1, and also with doxes for the speeds that will provide in the not to this future and so essential. What you're seeing is a combination of all these capabilities come to bear on the market.
Vince Valentini: Thank you.
Speaker 24: And you.
Multiple speakers: Thanks, Vince. Next question, Ariel? Our next question comes from Drew McReynolds of RBC. Please go ahead.
Speaker 2: Thanks vinces. Next question area.
Speaker 1: Our next question comes from jrew McReynolds of.
Speaker 1: Please go ahead.
Drew McReynolds: Yes. Thanks. Thanks very much. Good morning. Maybe a quick follow-up here just on the fibre question. Just for Jorge, perhaps. We often, as analysts, get asked what percentage of your targeted broadband footprint is fibre versus that hybrid. Are you able to, at all, kind of provide us with some context there? Secondly, just a quick one on Media. Lot of moving parts, and great to see things normalize here, in particularly for the Jays. When you kind of look short and medium term, is there kind of a normalized margin we should have in the back of our mind for that segment? Third and last, just on underlying mobile phone ARPU, great to see the 3% growth, obviously, a little bit more roaming ahead, and you spoke about some up tiering there underneath the hood, excluding roaming. Could you just unpack that a little bit more in terms of underlying ARPU growth, the key drivers, and to what extent you're seeing 5G drive some of that up-tiering? Thank you.
Speaker 25: Yeah thanks, thanks very much. Good morning. Maybe a quick follow-up here just on the fiber question. Just for George, perhaps we we often an get get asked: you know what percentage of?
Speaker 26: Your targeted broadband footprint is fiber versus that that hybrid. Are you able to at all kind of provide us with some context there? Secondly, just a quick one on media. Lot of moving parts and great to see things normalized here and particularly for the chase, when you kind of look short medium term, is there kind of a a normalized margin we should have in the back for our mind for that segment? And then, third and last, just on underlying mobile phone or to great to see the 3% growth. Obviously a little bit more roaming ahead- and you spoke about some up hearing there underneath the hood, excluding roaming. Could you just pack that a little bit more in terms of you know underlying or PO growth, the key drivers and to what extent you know you're seeing five G? Tried some of that up hearing. Thank you.
Tony Staffieri: Thanks, Drew. Maybe I'll start with the last one, and then Glenn will talk about the Media margins longer term, and Jorge can talk about the fibre deployment strategy. In terms of mobile phone ARPU, as you saw the uptick in 3% was largely attributable to the increase in roaming revenue. One of the things you saw underlying, and you'll see it play out in future quarters, is a very good migration in the first quarter, much like Cable, migration from the Fido brand onto the Rogers brand, in part due to our emphasis—in large part due to our emphasis back on the Rogers brand, and so that migration is happening nicely. But importantly, when you look at the underlying data usage trends, we're back up to 30% to 50% year-on-year growth rates, and we've talked about it before as we move in and out of lockdowns and the pandemic, coming out of it, we see out-of-home usage spike up; and therefore, the use case for unlimited becomes much more compelling. So, that's what we're seeing play out in the marketplace, and so I'm quite pleased with that. At the core, the fundamental ARPU driver is going to be data usage, and the demand is driven by 5G higher speeds, much lower latency, etc. So, that's what we expect to see play out in future quarters. But the reality is it will be overshadowed by roaming revenue increases for the next while.
Speaker 3: Thank sure, maybe I'll start with laskone and then.
Speaker 4: glenl talk about the media margins longer term and George can talk about the fiber deployment strategy.
Speaker 12: In terms of mobile phone ARPU. As you saw, the uptick in 3% was largely attributable to the increase in roaming revenue.
Speaker 12: one of the things you saw underlying- and you'll see it play out in future quarters- is a very good migration in the first quarter, much like cable migration from the fo brand on to the Rogers brand, in part due to our emphasis, in large part due to our emphasis back on the Rogers brand, and so that migration is happening nicely. But importantly, when you look at the underlying data usage trends, we're back up to 30- 50% year on your growth rates and we've talked about it before. As we move in and out of lockdowns and the pandemic coming out of it, we see out of home usage spike up and therefore the us case for unlimited becomes much more compelling, and so that's what we're seeing play out in the marketplace and I So I' quite pleased with that. So at the core, the fundamental ARPU driver is going to be data usage and the demands driven by five G higher speeds, much lower laten CY, etc. So that's what we expect to see play out in future quarters, but the reality is it'll be overshadowed by roaming revenue increases for the next while.
Multiple speakers: Then maybe on Media, Drew, we're certainly in a position that we will deliver positive EBITDA for the year. We're still working through the recovery through COVID and the shifts that have occurred through COVID. But certainly, seeing the resumption of live sports and our portfolio of sports asset being second to none, we're seeing a strong recovery building through the first quarter and anticipate that will continue through playoff season for the NHL, as well as through the young season underway now for the Blue Jays. So, we're confident that we've got the best sports content available, and we're seeing a recovery and growth coming back from advertising around those products. There's been a shift in just general population trends and work schedules over the last couple of years, as we all know. That's impacted some of the Media assets, particularly across our radio stations. As offices return to either a full-time or a hybrid model of coming back to the office, we anticipate that recovery will continue to build. We are seeing, though, also, some positive recovery coming back from new advertising categories. Online betting certainly has created a new category for advertising revenues, and as have crypto currencies, for example, which pre-pandemic we would not have seen those as being as prominent as certainly they are now. They also lend themselves well to the resumption of sports programming, and we're seeing the benefits of that. Overall, we will see positive EBITDA through this year. It's continuing to build.
Speaker 27: But and then maybe on on media true, I think, I think we're.
Speaker 7: But we're in. We're certainly in a position that we will deliver positive EBITDA for the year. We're still working through.
Speaker 6: The recovery through COVID-19 and the shifts that have occurred through COVID-19, but certainly seeing the resumption of life sports.
Speaker 7: And and our portfolio of sports asset being second to none. We're seeing a strong recovery building through the first quarter and anticipate that will continue through playoff season for the NHL, as well as through the, the young season underway now for the Blue Jays, and so we we're confident that we've got the best sports.
Speaker 6: Content available and we're seeinga recovery and growth coming back from advertising around those products. There's been a shift.
Speaker 7: In just just general population trends and work schedules over the last couple of years. As we all know, that's impacted some of the media assets, particularly across our radio stations. As offices return to either a full time or a hybrid model of coming back to the office, we anticipate that that that recovery will continue to build. We are seeing though, also some some positive.
Speaker 6: Recovery coming back from new advertising categories, online bedting certainly is created, a new category for for advertising revenues and, as have know cryptocurrencies, for example, which pre pandemic. We would not have seen those as as being as prominent as certainly they are they are now. They also know lend themselves well to the resumption of sports programming and and we're seeing the benefits of that. So overall we will see positive EBITDA through this year. It's continuing to build.
Jorge Capelas Fernandes: Good morning, Drew, and thanks for the question on the fibre cable question. Think about it this way, our entire wireline, and frankly, wireless network, is enabled by fibre. So whether it's DOCSIS or GPON, really what you're talking about is the last mile. Everywhere else, we have fibre. The choice for the last mile is really where it makes economic sense to go with one versus the other technology. As I said, we're very comfortable and very happy with the DOCSIS road map and the speeds and capabilities that it provides, and the choices of where we deploy one versus the other technology really depends on the age of the infrastructure. The passive infrastructure available to us as well, whether it’s poles or ducts. So, that's how we make the choice, not so much on the capability that exists in the last mile.
Speaker 23: Good morning throughrew, and thanks for the question on on the fiber cable question. I mean, think about this way our inentire.
Speaker 23: Wireline and frankly, wireless network is- is enabled by fiber, and so, whether it doces or cheap on, really what you're talking about is the last mile. Everywhere else we have fiber. The choice for the last mile is really where it makes economic sense to go with one versus the other technology. You know, as I said, we're very comfortable and very happy with the doc' roadmap and the speeds and capabilities that we provides, and the choices of where we deploy one versus other technology really depends on, you know, the age of the infrastructure, passiveof infrastructure available to us as well, with its poles of ducts, and so that's how we make the choice, not so much on the capability that exists in the last mile.
Drew McReynolds: Thanks very much for the additional colour. Thanks.
Speaker 28: Thanks very much for the additional color.
Speaker 2: Thanks tr next questionnaerio.
Paul Carpino: Alright. Thanks, Drew. Next question, Ariel?
Speaker 1: Our next question comes from Sebastiano petty of JP. Morgan, Please go ahead.
Operator: Our next question comes from Sebastiano Petti of J.P. Morgan. Please go ahead.
Sebastiano Carmine Petti: Good morning. Thanks for taking the questions. I was wondering if you could update us—just shifting back to the Cable side, can you update us on the competitive environment in retail Internet? With the economy reopening, are you seeing a pickup in the competitive intensity versus your telco peers? Related to that, the capital intensity spend in Cable stepped up this quarter, as we're discussing fibre to-the-home deployments, you have network expansion efforts. As we're thinking about the go-forward in the remainder of 2022, when should we expect these investments in the footprint expansion, as well as what you're also doing on the fixed wireless side, to begin to flow through the KPIs?
Speaker 29: The morning. Things are taking the questionions. I want to see if you can update us. Just shifting back to the cable side can update us on the competitive environment in retail Internet. But the economy reopening, are you seeing a pickup in the competitive intensity relative versus your telco peers?
Speaker 30: And then, related to that, the capital intensity spend in cable stepped up this quarter. I mean, as we're discussing, fiber to the home, deployments of the network, expansion efforts.
Sebastiano Carmine Petti: As we're thinking about the go-forward in the remainder of 2022, when should we expect these investments in the footprint expansion, as well as what you're also doing on the fixed wireless side, to begin to flow through the KPIs?
Speaker 2: As we're thinking about the go-forward and the remainder of 2, 20 and 20: two when should we expect these investments in the footprint expansion, as well as what you're also doing on the pitch, wireless sides- to begin to flow through to KPI?
Tony Staffieri: Good morning, Sebastiano. Thanks for the question. I'll start with your question on Cable competitive intensity in the marketplace. It continues to be competitive, as you would have seen in previous quarters and previous years. I would say the landscape at least in part driven by us, but the market in general has pivoted from Internet-only to a whole home solution that includes video that we've talked about, and increasingly, you'll see smart home monitoring as part of that. We would describe it as moving to whole-home, away from flanker to the premium brand with continuing promotions in the market on a neighbourhood-by-neighbourhood basis. Nothing's really changed in that context, and it's against that backdrop that our execution is performing well. The second piece of it relates to and the reason we're so focused on that is, how are we doing in terms of penetration of homes passed. Glenn will talk about our CapEx outlook, but think about it broadly as we want to increase the number of homes passed, and we'll invest where it makes economic sense to do so. This quarter, you saw our homes passed increased by 3% on a year-on-year basis. As we look to population growth within our territory footprint, it's growing at 5%, and so our expectation is to try to have Cable CapEx keep up with that demand, if you will, and ensure we execute on the right penetration rates for that increasing footprint.
Speaker 12: Morning seano, and thanks for the question. I'll start with your question on cable competitive intensity in the marketplace. It continues to be competitive, as you would have seen in previous quarters and previous years.
Speaker 12: I would say the landscape, at least in part driven by us, but the market in general has pivoted from Internet only to a whole home solution. That includes video that we've talked about, and increasingly you'll see smartinal monitoring as part of that, and and so we would describe it as moving to whole home, away from flanker to the premium brand, with continuing promotions in the market on a neighborhood by neghborhood basis, and so nothing's really changed in that context.
Speaker 6: And it's against that backdrop that our execution is is performing well. The second piece of it relates to, and the reason we're So focused on that is: how are we doing in terms of penetration of homes passed and why? I'll talk about our CapEx outlook, But think about it broadly, as we want to increase the number of homes passed and we'll invest in where it makes economic sense to do so, and so this quarter you saw our homes past increase by 3% on a year-on-year basis. As we look to population growth within our territory footprint it's grow at 5%, and so our expectation is to try to have cable CapEx keep up with that demand, if you will, and ensure we execute on the right penetration rates for that increasing footprint.
Speaker 12: And it's against that backdrop that our execution is is performing well. The second piece of it relates to, and the reason we're So focused on that is: how are we doing in terms of penetration of homes passed and why? I'll talk about our CapEx outlook, But think about it broadly, as we want to increase the number of homes passed and we'll invest in where it makes economic sense to do so, and so this quarter you saw our homes ped increase by 3% on a year on year basis. As we look to population growth within our territory footprint it's grow at 5%, and so our expectation is to try to have cable CapEx keep up with that demand, if you will, and ensure we execute on the right penetration rates for that increasing footprint.
Glenn Brandt: I think that's right, Sebastiano. Look, we are looking to expand footprint where we can help broaden the reach of Internet connectivity further into rural Canada. You’ve heard us talk about that for some time, and that is reflected in the capital intensity that you've mentioned. I think in terms of driving the KPIs through that, you heard me say earlier, we are confident that we have the best Internet and television experience available to customers, over to us to lean in on investing in customer service and sales execution to help drive those KPIs. I think we're seeing early signs of that. We've seen some in the first quarter, and we'll see that continue to build through this year. Certainly, we're focused on it. I don't think there the impetus is investing more in capital spend; it's investing more in customer care and sales execution to drive those KPI results that you've mentioned. We're on it and seeing early signs of that. More to come. On the Cable investment, you're going to continue to see capital intensity levels, roughly where they are right now, rolling forward. I think we still have more to do in terms of expanding footprint and building out that capability. We will be doing that across a national network as we come together with Shaw, and so we'll continue to make sure we have the best television and Internet experience across all of our footprint. Maybe, I'll leave it there.
Speaker 6: I think that's, I think that's right best channel. I think look we, we are looking to expand footprint where, where we can help, you know, broaden the reach of of Internet connectivity further into rural canada- you've heard us talk about that for some time and you know that is that is reflected in the capital intensity that you- you've mentioned, I think, in terms of of driving the K P I through that.
Speaker 10: We you know you me say earlier- we are confident that we have the best Internet and television experience available to customers over to us to lean in on, know investing in customer service and sales execution to help drive those K P I and so I think you know we're seeing early signs of that. We've seen some in the first quarter and we'll see that continue to build through this year. Certainly we're focused on it. I don't think there the you know the impetus is investing more in capital spend. It's investing more in customer care and sales execution to drive those K P I results that you've mentioned, and so we're on it and and seeing early signs of that. More to come on the on the cable investment, you're going to continue to see capital intensity levels roughly where they are right now, rolling forward. I think we still have more to do in terms of expanding footprint and and building out that capability. We will' be doing that across a national network as we come together with Shaw, and so we'll continue to make sure we have the best television Internet experience across all of our footprint. And maybe I'll leave it there.
Speaker 6: We heard me say earlier: we are confident that we have the best.
Speaker 8: Internet and television experience available to customers over to us to lean in on. You know investing in customer service and sales execution to help drive those K P I, and so I think you know we're seeing early signs of that. We've seen some in the first quarter and we'll see that continue to build through this year. Certainly we're focused on it. I don't think there the know, the impetus is investing more in capital spend. It's investing more in customer care and sales execution to drive those K P I results that you've mentioned, and so we're on it and and seeing early signs of that. More to come. On the on the cable investment, you're going to continue to see capital intensity levels roughly at where they are right now, rolling forward. I think we still have more to do in terms of expanding footprint and and building out that capability. We will be doing that across a national network as we come together with Shaw, and so you know we'll continue to make sure we have the best television Internet experience across all of our footprint, and maybe I'll leave it there.
Multiple speakers: If I could quickly follow up, I think Jeff asked about it earlier, but you alluded to your comments executing against some of the synergies until the deal closed. I mean, expectations would still be—I think, in your prepared remarks, Glenn, expectations of post deal close still targeting that $1 billion synergies, so while you may be improving processing efficiencies into the deal close, post deal close on a pro forma basis of $1 billion is still how we should think about the synergy opportunity going forward. Yes. Yes. Think of it in that context, over the 24 months post-closing, we're leaning in now, and if we can achieve that earlier, we will achieve it earlier. If we can go beyond that, we will. But think of it in the context of that in terms of the cost synergies, Sebastiano.
Speaker 31: I could quickly follow up. I think Jeff asked about it earlier.
Speaker 31: You alluded to your comments, executing against some of those synergies into the deal closeed. I mean expectations would still be, I think, in your prepared remarks when expectations of post deal closeed still targeting that one billion synergies. So while you may be improve a process and the efficiencies into the deal close. So deal comes on a pro forma basis. one billion is still how we should think about the synergy opportunity. go- yes yes, think of it in that context- over the over the 24 months postpost closing. We're leaning in now and if we can achieve that earlier, we will achieve it earlier. If we can go beyond that, we will. But think of it in the context of that in terms of the cost syergy surpassed channel.
Speaker 29: You alluded to your comments, executing against some of the synergies into the deal closeed. I mean expectations would still be, I think, in your prepared remarks when expectations of post deal closed still targeting that one billion synergies. So while you may be improve a process and efficiencies into the deal closeed.
Speaker 32: Steel becausees, on a pro forma basis, one billion is still how we should think about the synergy opportunity. go- yes yes, think of it in that context- over the know, over the 24 months post, post closing. We're leaning in now and if we can achieve that earlier, we will achieve it earlier. If we can go beyond that, we will. But think of it in the context of that, in terms of the cost synergy supassed J.
Speaker 32: So deal comes on a pro forma basis. one billion is still how we should think about the synergy opportunity. go- yes yes, think of it in that context- over the over the 24 months postpost closing. We're leaning in now and if we can achieve that earlier, we will achieve it earlier. If we can go beyond that, we will. But think of it in the context of that in terms of the cost syergy surpassed channel.
Sebastiano Carmine Petti: Thanks again.
Speaker 33: Thank you young.
Speaker 34: Thank.
Multiple speakers: Thank you. Thanks, Sebastiano. Next question, Ariel?
Speaker 2: Thanks bastichano next questionnaire.
Operator: Our next question comes from Simon Flannery of Morgan Stanley. Please go ahead.
Speaker 1: Our next question comes from Simon Flannery of Morgan Stanley . Please go.
Simon William Flannery: Thanks so much. Coming back to the deal expectations. You talked about the financing of the deal. You're outperforming on EBITDA and revenues. So, how should we think about the path of deleveraging here over the next couple of years? Are the targets still the same, or could you accelerate that? And what do you think in terms of asset sales as part of that mix? It's good to hear we haven't really heard much about inflation or supply chain on the cost side. Obviously, efficiencies have helped there. But any updates on what you're seeing and how you're managing that? Thanks.
Speaker 35: Thank so much. Coming back to the deal expectations, you talked about the financing of the deal. You're outperforming on EBITDA and revenues. So how should we think about the path of deleveraging here over the next couple of years? So the target still the same or could you accelerate that? And what do you think in terms of asset sales as part of that mix? And then this: good to hear, we haven't really heard much about inflation or supply chain on the cost side. Obviously efficiencies have hehelp there, but any updates on what you're seeing and how you're managing that thanks?
Glenn Brandt: Thank you, Simon. I think in terms of the financing, that's done, and so we have our permanent financing in place. The only remaining moving part will be the settling out of remedy sale proceeds versus up to a $6 billion committed bank term loan we have in place to round out the $19 billion cash purchase price on the deal. So, that has settled out. In terms of trajectory for de-levering, I don't think there's not really anything to update further than what you've heard previously. As I've just mentioned, the target remains $1 billion of cost synergies post closing over two years, I think that remains our target. You will see us de-lever on the back of the cost synergies; as well as revenue synergies that we drive, you'll see that fall through on higher earnings. But really, that's what we're executing around, Simon. It's early days. We haven't yet closed the transaction, and so more to come on that as we execute. But you will see us de-levering, continuing at pace. The credit rating agencies certainly are focused on that. I have spent my entire career making sure that the credit rating agencies understand our capital priorities and how we fund ourselves, and so that file continues to be managed. We're satisfied and happy with where we are on early progress.
Speaker 6: Thank you, Simon. I think, in terms of the of the financing that's, that's done and so we have a permanent financing in place. The only the room only remaining moving part will be, you know the, the settling out of remedy sale proceeds versus a up to $6 billion committed bank term loan we have in place to to around out the, the $19 billion cash purchase price on the deal. So so that has settled out. In terms of trajectory for delever, I don't think there's there's not really any anything to update further than what you've you've heard previously. As I, as I you know, just mentioned, the target remains a billion dollars of cost synergies post closing over over two years. I think you know that remains are our target. You will see us delever on the back of cost synergies as well as revenue synergies that we drive. You'll see that, you know, fall through on on higher earnings. But really that's what we're executing around. Simon, it's early days. We have and the close the transaction and so know more to come on that as we execute. But you will see us, you know delevering continuing a place. The credit rating agencies certainly are focused on that. I have spent my entire career making sure that the credit rating agencies understand our capital priorities and how we, how we fund selvesll and and so that file continues to to be managed and we're satisfied and happy with where we are on early progress.
Tony Staffieri: The second part of your question, Simon, in terms of macro supply chain issues, I would say they're at the margin. By and large, our supply chain has improved, and we're getting what we need. Frankly, the environment has pushed us to be better at planning and forecasting and getting what we need on a timely basis. Nothing there to report of significance. On the inflationary cost pressure side, we are seeing that in some pockets. A great example would be on infrastructure build spend, particularly on the labour side, we see costs coming up. But we're managing it, and we'll figure it out within our total CapEx and OpEx spend structure.
Speaker 12: In the second part our colquestions in terms of macro supply chain issues. I would say that're at the margin. By and large, our supply chain has improved than we're getting what we need. Frankly, the environment has pushed us to be better at planning and forecasting and getting that, getting what we need on a timely basis, and so nothing there to report a significance. And on the deflationary cost pressure side, we are seeing that in some pockets. A great example would be on infrastructure build spend, particularly on the labor side. We see cost coming up but we're managing it and we'll figure it out within our total CapEx and OpEx spend structure.
Glenn Brandt: I think one add-on for that, Simon, is with the sheer size that we will have with coming together with Shaw, it is helping us to manage delivery schedules better with vendors. We had their attention before. We certainly have their attention now with the volumes that we can drive and the work that we have in front of us.
Speaker 36: I think one add on for that Diamond is with the, with the sheer size that we will have, with coming together with Shaw, it is helping us to manage delivery schedules better with vendors. They we had their attention before. We certainly have their attention now with the volumes that we can drive in work that we have in front of.
Speaker 35: Ma sense.
Simon William Flannery: Makes sense. Alright. Thank you.
Speaker 33: Right Thank you.
Speaker 37: Thank you.
Speaker 2: Thanks SIM, our next questionnaio.
Paul Carpino: Thanks, Simon. Next question, Ariel?
Operator: Our next question comes from Aravinda Galappatthige of Canaccord Genuity. Please go ahead.
Speaker 1: Our next question comes from our vinddec alli pttige of cannicor enuity. Please go ahead.
Speaker 38: Good morningthanks for taking my questions. Just wanted to take the the wireless discussion a little bit further. Obviously, looking beyond the nearter, you talked about sort of five G instesort of continuing increases and speeds and the latency and, as some of the use cases, stesort of increases as well. Maybe talk about how you sort of look to monetize those increased capabilities. I know that in the market we started to see some tiering options as well for speed. Is that the direction you want to go in? Wanted to get your take on how you see that going forward. And and then secondly, maybe just taicking to five G as well on the B to B side, any kind of color around, when we can expect to see more materiality on that front. On the IoT front or private public Mac And so forth, I know you mean have a number of interesting press releases of late. Any additional updates would be held.
Aravinda Suranimala Galappatthige: Good morning. Thanks for taking my questions. Just wanted to take the Wireless ARPU discussion a little bit further. Obviously, looking beyond the near term. You talked about sort of 5G and sort of the continuing increases in speeds and lower latency. As some of the use cases sort of increase as well, maybe just talk about how you sort of look to monetize those increased capabilities. I know that in the market we're starting to see some tiering options as well for speed. Is that the direction you want to go in? I wanted to get your take on how you see that going forward. Secondly, maybe just sticking to 5G as well. On the B2B side, any kind of colour around when we can expect to see more materiality on that front, be it on the IoT front, or private/public MAC and so forth? I know you made a number of interesting press releases of late. Any additional updates would be helpful. Thanks.
Tony Staffieri: Aravinda, thanks for the question. I'll start with the second part, in terms of B2B. We're seeing really good progress in terms of our focus there, particularly on IoT. We're seeing growth in attach rates on IoT. So, that's coming in nicely. It isn't part of our disclosure yet, but you can expect to see it post Shaw close, in terms of how we're progressing on that front. Not a lot we want to say on this call, it will be future quarters that you start to look at that when we have something meaningful to say that's relevant to the financial projections.
Speaker 37: Are' going to pure the question?
Speaker 12: I'll start with the second part in terms of B two V.
Speaker 6: We're seeing really good progress in terms of our focus there, particularly on IoT. We're seeing growth and attach rates on IoT So that's coming in nicely. It isn't part of our disclosure yet but you can expect to see it post Shaw close in terms of how we're progressing on that front and so not a lot we want to ay say on this call. It'll be future quarters that you start to look at that, when we have something meaningful to say that's relevant to the financial projections.
Speaker 12: We're seeing really good progress in terms of our focus there, particularly on IoT. We're seeing growth and attacherates on IoT, So that's coming in nicely. It isn't part of our disclosure yet but you can expect to see it post Shaw close in terms of how we're progressing on that front and so not a lot we want to ay say on this call. It'll be future quarters that you start to look at that, when we have something meaningful to say that's relevant to the financial projections.
Tony Staffieri: First part of your question related to how we think about ARPU drivers beyond just data usage. Absolutely, with the functionality that 5G brings in terms of not only speed quality but other functionality, and you see it in other markets, particularly in the U.S. So, you can expect us to have value propositions that start to tier it based on beyond just speed. What we're finding is speed is one thing, but customers are actually interested in other factors, like latency and other features, if you will, that they find of value. And so, I think you can expect us to produce that in the marketplace. Jorge spends a lot of time sort of looking at usage patterns. Jorge, maybe you can provide a bit more colour on that.
Speaker 12: First part of your question related to how we think about ARPU drivers beyond just data usage and absolutely with the functionality that five G brings in terms of not only speed quality but other functionality and you see it in other markets particularly in the U 's. And so you can expect us to have value propositions that start to Tier it based on beyond just speed. What we're finding is speed is one thing but the customers are actually interested in other factors like latency and other features. If you will that that they find a value and so I think you can expect us to produce that in the marketplace George spends a lot of time sort of looking at usage patterns and so George maybe you can provide a bit more color on that yes.
Jorge Capelas Fernandes: Yes. Thanks, Aravinda. The work we've been doing on 5G. Recently launched the 5G stand-alone core. We've certified all the top handsets in the market, and so what you're beginning to see with these new capabilities, and now, low latency really becoming a feature. Also, as we start to light up the 3.5 gig spectrum, and that will be available for wireless enablement later this year, then you're really going to start seeing not just a combination of the more spectrum equating to more speed, the stand-alone core that we've been able with low latency, and so now you're beginning really to see the possibility to enable features that will differentiate the network for whether it's network slicing for specific users like gaming, or even things like emergency services and so on. We're now really beginning to have that sort of second phase of the network capability become a reality, and you'll see more and more services hitting the market as the devices become more pervasive in our customers' hands.
Speaker 23: thingss are the you know the work we're building on five G, recently launch the five G standalone core. We've certified all the top handsets in the market and so what you're beginning to see with these new capability and now low latency really becoming feature also, as we start to light up the 3- five spectrum- and you know that will be available for wireless enablement later this year- then you're really going to start seeing not just a combination of you, more spectrum equating to more speed, the standalone core that we've enable with low latency, and so now you're beginning really to see the possibability to enable features that will differentiate the network for, whether it's network slicing for specific uses like gaming, or even, you know, things like emergency services and so on. We're now really beginning to have that sort of second phase of the network capability become reality and you'will see more and more you services hitting the market as the devices become more pervisive in our customers' hands.
Speaker 1: Capability become a reality and you'will see more and more services hitting the market as the devices become more pervisive in our customers hands.
Speaker 2: Great color, Thank you.
Speaker 3: Thanks arabina Arrow. We have time for one more question please.
Speaker 4: Our final question comes from drerome to brutel of dejr den. Please go ahead.
Speaker 5: Hi good morning everyone. Thanks for squeezing me in here first Congrats. Congressional results really impressive, especially on the cable margin front. We've seen a few definition changes. Would you agree that, in terms of ARPU growth, your definition change is slightly boosting the number in terms of growth that we're seeing, and if you agree with that, if you can quantify the impact on the change? Of course?
Speaker 6: Your own thanks for the question. In terms of the change we made, what we wanted to do was align our disclosure with what you're seeing in the Canadian landscape on disclosure and focused on mobile phone, and take out some of the noise with respect to tablets etc. And so the increase you're seeing of just over 3% on mobile phone arput. It's the same. If you are on packet and do it on the way we used to do it, just post paid SIM ARPU growth, that works out to 3% as well. So it's the same. Hopefully we've answered your question, So let us know if not.
Speaker 7: Yeah not sure this. So this defense, or my question, and then the second 1, if I may. I was wondering if we're starting to see some fixwireless net as in your Internet numbers.
Speaker 6: You are Jerome, and so we've, as we stated the last quarter. It's a big focus area for us. George spent quite a bit of time throughout 21, and particularly in the fourth quarter, Wring our wireless network to enable fixed wireless access in a number of new geographies for us, and so with that we started executing on sales in the first quarter, and so I would say that ramp up was relative to our core Internet offering light and small in terms of numbers, but we are targeting significant ramp up, as we had into the second quarter and for the rest of the year, and it will be included in our cable Internet net ads and as we move forward you'll see us disclose the difference between those 2, I think from a from a personal standpoint. Bear with the with the short commercial from me here, but I live inon a farm rooute on our West of our officees here and over the last couple of years spent just about every day working from my home office- I don't live in a Rogers territory- And my wirerelineines service just wasn't able to handle the data speed.
Speaker 7: Very early on in March of 2020 kibreg, or Head of network, sent me a fixed wireless modem of four G modem. I still use that to run my home office and over the course of two years of video conference and calls, my service was interrupted- a total of five calls through that two yearsthe service was exceptionally good. This is going to be an important part of our expanding service and bring them to rural Canada and helping to bridge that digital divide. We CAn't run wire everywhere. We'll run it wherever we can, but fixed wireless as a as an excellent opportunity for some areas that right now we're either run served or very underersserved, and so this will be an important part of the.
Speaker 8: Get way to waiteddid that the product thinks, think that's helpful and conress against. Thank you, J.
Speaker 3: Thanks Jerome, and thanks everyone for joining us today. If you want to sit in on our AGM, it's available at the Investor Relations at our Investor Relations site. Thanks for time and if there's any follow-up, please reach outthank.
Speaker 4: This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.
Speaker 1: Capability become a reality and you'will see more and more services hitting the market as the devices become more pervisive in our customers hands.
Speaker 2: Great color, Thank you.
Speaker 3: Thanks arabina Arrow. We have time for one more question please.
Speaker 4: Our final question comes from drerome to brutel of dejr den. Please go ahead.
Speaker 5: Hi good morning everyone. Thanks for squeezing me in here first Congrats. Congressional results really impressive, especially on the cable margin front. We've seen a few definition changes. Would you agree that, in terms of ARPU growth, your definition change is slightly boosting the number in terms of growth that we're seeing, and if you agree with that, if you can quantify the impact on the change? Of course?
Speaker 6: Your own thanks for the question. In terms of the change we made, what we wanted to do was align our disclosure with what you're seeing in the Canadian landscape on disclosure and focused on mobile phone, and take out some of the noise with respect to tablets etc. And so the increase you're seeing of just over 3% on mobile phone arput. It's the same. If you are on packet and do it on the way we used to do it, just post paid SIM ARPU growth, that works out to 3% as well. So it's the same. Hopefully we've answered your question, So let us know if not.
Speaker 7: Yeah not sure this. So this defense, or my question, and then the second 1, if I may. I was wondering if we're starting to see some fixwireless net as in your Internet numbers.
Speaker 6: You are Jerome, and so we've, as we stated the last quarter. It's a big focus area for us. George spent quite a bit of time throughout 21, and particularly in the fourth quarter, Wring our wireless network to enable fixed wireless access in a number of new geographies for us, and so with that we started executing on sales in the first quarter, and so I would say that ramp up was relative to our core Internet offering light and small in terms of numbers, but we are targeting significant ramp up, as we had into the second quarter and for the rest of the year, and it will be included in our cable Internet net ads and as we move forward you'll see us disclose the difference between those 2, I think from a from a personal standpoint. Bear with the with the short commercial from me here, but I live inon a farm rooute on our West of our officees here and over the last couple of years spent just about every day working from my home office- I don't live in a Rogers territory- And my wirerelineines service just wasn't able to handle the data speed.
Speaker 7: Very early on in March of 2020 kibreg, or Head of network, sent me a fixed wireless modem of four G modem. I still use that to run my home office and over the course of two years of video conference and calls, my service was interrupted- a total of five calls through that two yearsthe service was exceptionally good. This is going to be an important part of our expanding service and bring them to rural Canada and helping to bridge that digital divide. We CAn't run wire everywhere. We'll run it wherever we can, but fixed wireless as a as an excellent opportunity for some areas that right now we're either run served or very underersserved, and so this will be an important part of the.
Speaker 8: Get way to waiteddid that the product thinks, think that's helpful and conress against. Thank you, J.
Speaker 3: Thanks Jerome, and thanks everyone for joining us today. If you want to sit in on our AGM, it's available at the Investor Relations at our Investor Relations site. Thanks for time and if there's any follow-up, please reach outthank.
Speaker 4: This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.
Speaker 1: Capability become a reality and you'will see more and more services hitting the market as the devices become more pervisive in our customers hands.
Speaker 2: Great color, Thank you.
Speaker 3: Thanks arabina Arrow. We have time for one more question please.
Speaker 4: Our final question comes from drerome to brutel of dejr den. Please go ahead.
Speaker 5: Hi good morning everyone. Thanks for squeezing me in here first Congrats. Congressional results really impressive, especially on the cable margin front. We've seen a few definition changes. Would you agree that, in terms of ARPU growth, your definition change is slightly boosting the number in terms of growth that we're seeing, and if you agree with that, if you can quantify the impact on the change? Of course?
Speaker 6: Your own thanks for the question. In terms of the change we made, what we wanted to do was align our disclosure with what you're seeing in the Canadian landscape on disclosure and focused on mobile phone, and take out some of the noise with respect to tablets etc. And so the increase you're seeing of just over 3% on mobile phone arput. It's the same. If you are on packet and do it on the way we used to do it, just post paid SIM ARPU growth, that works out to 3% as well. So it's the same. Hopefully we've answered your question, So let us know if not.
Speaker 7: Yeah not sure this. So this defense, or my question, and then the second 1, if I may. I was wondering if we're starting to see some fixwireless net as in your Internet numbers.
Speaker 6: You are Jerome, and so we've, as we stated the last quarter. It's a big focus area for us. George spent quite a bit of time throughout 21, and particularly in the fourth quarter, Wring our wireless network to enable fixed wireless access in a number of new geographies for us, and so with that we started executing on sales in the first quarter, and so I would say that ramp up was relative to our core Internet offering light and small in terms of numbers, but we are targeting significant ramp up, as we had into the second quarter and for the rest of the year, and it will be included in our cable Internet net ads and as we move forward you'll see us disclose the difference between those 2, I think from a from a personal standpoint. Bear with the with the short commercial from me here, but I live inon a farm rooute on our West of our officees here and over the last couple of years spent just about every day working from my home office- I don't live in a Rogers territory- And my wirerelineines service just wasn't able to handle the data speed.
Speaker 7: Very early on in March of 2020 kibreg, or Head of network, sent me a fixed wireless modem of four G modem. I still use that to run my home office and over the course of two years of video conference and calls, my service was interrupted- a total of five calls through that two yearsthe service was exceptionally good. This is going to be an important part of our expanding service and bring them to rural Canada and helping to bridge that digital divide. We CAn't run wire everywhere. We'll run it wherever we can, but fixed wireless as a as an excellent opportunity for some areas that right now we're either run served or very underersserved, and so this will be an important part of the.
Speaker 8: Get way to waiteddid that the product thinks, think that's helpful and conress against. Thank you, J.
Speaker 3: Thanks Jerome, and thanks everyone for joining us today. If you want to sit in on our AGM, it's available at the Investor Relations at our Investor Relations site. Thanks for time and if there's any follow-up, please reach outthank.
Speaker 4: This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.
Speaker 1: Capability become a reality and you'will see more and more services hitting the market as the devices become more pervisive in our customers hands.
Speaker 1: Capability become a reality and you'will see more and more services hitting the market as the devices become more pervisive in our customers hands.
Aravinda Suranimala Galappatthige: Great colour. Thank you.
Speaker 2: Quick color Thank you.
Speaker 2: Quick color Thank you.
Speaker 39: Great color, Thank you.
Speaker 3: Thanks arabina arl. We have time for one more question please.
Speaker 3: Thanks arabina arl. We have time for one more question please.
Speaker 2: Thanks arabina arl. We have time for one more question please.
Paul Carpino: Thanks, Aravinda. Ariel, we have time for one more question, please.
Operator: Our final question comes from Jérome Dubreuil of Desjardins. Please go ahead.
Speaker 4: Our final question comes from drerome to bruel of dejrardden. Please go ahead.
Speaker 4: Our final question comes from drerome to bruel of dejrardden. Please go ahead.
Speaker 1: Our final question comes from drerome to brutel of dejr den. Please go ahead.
Jerome Dubreuil: Hi. Good morning, everyone. Thanks for squeezing me in here. First, congrats on the results. Really impressive, especially on the Cable margin front. We've seen a few definition changes. Would you agree that, in terms of ARPU growth, your definition change is slightly boosting the number in terms of growth that we're seeing? And if you agree with that, if you can quantify the impact on the change of growth?
Speaker 5: Hi good moneyning everyone. Thanks for squeezing me in here.
Speaker 5: Hi good moneyning everyone. Thanks for squeezing me in here.
Speaker 40: Hi good moneyning everyone. Thanks for squeezing me in here.
Speaker 6: First Congrats, congrat. Results really impressive, especially on the cable margin front.
Speaker 6: First Congrats, congrat. Results really impressive, especially on the cable margin front.
Speaker 41: First Congrats. congressal results really impressive, especially on the cable margin front.
Speaker 7: We've seen a few definition changes. Would you agree that, in terms of ARPU growth, your definition change is slightly boosting the number in terms of growth that we're seeing and if you agree with that, if you can quantify the impact on the change of?
Speaker 7: We've seen a few definition changes. Would you agree that, in terms of ARPU growth, your definition change is slightly boosting the number in terms of growth that we're seeing and if you agree with that, if you can quantify the impact on the change of?
Speaker 42: We've seen a few definition changes. Would you agree that, in terms of ARPU growth, your definition change is slightly boosting the number in terms of growth that we're seeing and, if you agree with that, if you can quantify the impact on the change of growth?
Tony Staffieri: Hi, Jérome. Thanks for the question. In terms of the change we made, what we wanted to do was align our disclosure with what you're seeing in the Canadian landscape on disclosure and focus on mobile phone, and take out some of the noise with respect to tablets, etc. The increase you're seeing of just over 3% on mobile phone ARPU, it's the same if you were to unpack it and do it on the way we used to do it, just postpaid SIM ARPU growth. That works out to 3% as well, so it's the same. Hopefully, we've answered your question, but let us know if not.
Speaker 8: Your own thanks for the question. In terms of the change we made, what we wanted to do was align our disclosure with what you're seeing in the Canadian landscape on disclosure and focused on mobile phone, and take out some of the noise with respect to tablets etc. And so the increase you're seeing of just over 3% on mobile phone ARPU. It's the same. If you are to packetit and do it on the way we used to do it, just post paid SIM ARPU growth, that works out to 3% as well. So it's the same. Hopefully we've answered your question.
Speaker 8: Your own thanks for the question. In terms of the change we made, what we wanted to do was align our disclosure with what you're seeing in the Canadian landscape on disclosure and focused on mobile phone, and take out some of the noise with respect to tablets etc. And so the increase you're seeing of just over 3% on mobile phone ARPU. It's the same. If you are to packetit and do it on the way we used to do it, just post paid SIM ARPU growth, that works out to 3% as well. So it's the same. Hopefully we've answered your question.
Speaker 3: Your own thanks for the question. In terms of the change we made, what we wanted to do was align our disclosure with what you're seeing in the Canadian landscape on disclosure and focused on mobile phone, and take out some of the noise with respect to tablets etc. And so the increase you're seeing of just over 3% on mobile phone arput. It's the same. If you are on packet and do it on the way we used to do it, just post paid SIM ARPU growth, that works out to 3% as well. So it's the same. Hopefully we've answered your question.
Speaker 8: But let us know if not.
Speaker 8: But let us know if not.
Speaker 4: But let us know ifnot.
Jerome Dubreuil: Yes. No, sure, this does answer my question. Then the second one, if I may. I was wondering if we're starting to see some fixed wireless net adds in your Internet numbers.
Speaker 9: Yeah not sure this. So this defense, or my question, and then the second 1, if I may. I was wondering if we're starting to see some fixwireless net as in your Internet numbers.
Speaker 9: Yeah not sure this. So this defense, or my question, and then the second 1, if I may. I was wondering if we're starting to see some fixwireless net as in your Internet numbers.
Speaker 43: Yeah not sure this. So this defense, or my question, and then the second 1, if I may. I was wondering if we're starting to see some fixwireless net as in your Internet numbers.
Multiple speakers: You are, Jérome, and so as we stated last quarter, it's a big focus area for us. Jorge spent quite a bit of time throughout ’21, and particularly in the fourth quarter, readying our wireless network to enable fixed wireless access in a number of new geographies for us. With that, we started executing on sales in the first quarter. I would say that ramp-up was, relative to our core Internet offering, light and small in terms of numbers. But we are targeting significant ramp-up as we head into the second quarter and for the rest of the year, and it will be included in our Cable/Internet net adds. As we move forward, you'll see us disclose the difference between those two. I think from a personal standpoint, and bear with the short commercial from me here, but I live on a farm road an hour west of our offices here, and over the last couple of years spent just about every day working from my home office. I don't live in a Rogers territory, and my wireline service just wasn't able to handle the data speeds very early on in March of 2020. Kye Prigg, our Head of Networks, sent me a fixed wireless modem, a 4G modem. I still use that to run my home office, and over the course of two years of video conferencing calls, my service was interrupted a total of five calls through that two years. The service was exceptionally good. This is going to be an important part of our expanding service in bringing them to rural Canada and helping to bridge that digital divide. We can't run wire everywhere. We'll run it wherever we can. But fixed wireless is an excellent opportunity for some areas that right now are either unserved or very underserved, and so this will be an important part of that.
Speaker 10: You are Jerome, and so we've, as we stated the last quarter. It's a big focus area for us. George spent quite a bit of time throughout 21 and particularly in the fourth quarter, readying our wireless network to enable fixed wireless access in a number of new geographies for us, and so with that we started executing on sales in the first quarter, and so I would say that ramp up was relative to our core Internet offering light and small in terms of numbers, but we are targeting significant ramp up as we head into the second quarter and for the rest of the year, and it will be included in our cable Internet net ads and as we move forward you', LL see us disclose the difference between those 2, I think from a from a personal standpoint- bear with the with the short commercial from me here, but I live on a farm road and our West of our offices here, and over the last couple of years spent just about every day working from my home office.
Speaker 10: You are Jerome, and so we've, as we stated the last quarter. It's a big focus area for us. George spent quite a bit of time throughout 21 and particularly in the fourth quarter, readying our wireless network to enable fixed wireless access in a number of new geographies for us, and so with that we started executing on sales in the first quarter, and so I would say that ramp up was relative to our core Internet offering light and small in terms of numbers, but we are targeting significant ramp up as we head into the second quarter and for the rest of the year, and it will be included in our cable Internet net ads and as we move forward you', LL see us disclose the difference between those 2, I think from a from a personal standpoint- bear with the with the short commercial from me here, but I live on a farm road and our West of our offices here, and over the last couple of years spent just about every day working from my home office.
Speaker 3: You are Jerome, and so we've. As we stated last quarter, it's a big focus area for us. George spent quite a bit of time throughout 21, and particularly in the fourth quarter, writing our wireless network to enable fixed wireless access in a number of new geographies for us, and so with that we started executing on sales in the first quarter, and so I would say that ramp up was relative to our core Internet offering light and small in terms of numbers, but we are targeting significant ramp up as we head into the second quarter and for the rest of the year, and it will be included in our cable Internet net ads and as we move forward you'll see us disclose the difference between those two.
Speaker 6: I think from a from a personal standpoint, and bear with the with the short commercial from me here, but I live on a farm road an hour West of our offices here and over the last couple of years spend just about every day working from my home office.
Speaker 11: I don't live in a Rogers' territory And my my wireline service just wasn't able to handle the data speed.
Speaker 11: I don't live in a Rogers' territory And my my wireline service just wasn't able to handle the data speed.
Speaker 8: I don't live in a Rogers' territory And my my wireline service just wasn't able to handle the data speed.
Speaker 10: Very early on in in March of 2020 kibreg, or out of of network, sent me a fixed wireless modem of a four G modem. I still use that to run my home office and over the course of two years of video conference and calls, my service was interrupted- a total of five calls through that two yearsthe service was exceptionally good. This is going to be an important part of our expanding service in bring them to rural Canada and helping to bridge that digital divide. We CAn't run wire everywhere-'ll run it wherever we can but- but fixed wireless is a as an excellent opportunity for some areas that that right now we're either unserved or very underersserved, and so this will be an important part of that.
Speaker 11: Very early on in March of 2020 kirig, Head of network, sent me a fixed wireless modem.
Speaker 11: Very early on in March of 2020 kirig, Head of network, sent me a fixed wireless modem.
Speaker 6: Very early on in March of 2020, kibreger Ed of network sent me a fixed wireless modem.
Speaker 11: A four G modem. I still use that to run my home office and over the course of two years of video conference and calls my service was interrupted- a total of five calls through that two years. The service was exceptionally good. This is going to be an important part of our expanding service and bring them to rural Canada and helping to bridge that, that digital divide. We CAn't run wire everywhere. We'll run it wherever we CAn't, but but fixed wireless as a is an excellent opportunity for some areas that that right now we either unserved or very undersserved, and so this will be an important part of that.
Speaker 11: A four G modem. I still use that to run my home office and over the course of two years of video conference and calls my service was interrupted- a total of five calls through that two years. The service was exceptionally good. This is going to be an important part of our expanding service and bring them to rural Canada and helping to bridge that, that digital divide. We CAn't run wire everywhere. We'll run it wherever we CAn't, but but fixed wireless as a is an excellent opportunity for some areas that that right now we either unserved or very undersserved, and so this will be an important part of that.
Speaker 6: A four G modem. I still use that to run my home office and over the course of two years of video conference and calls my service was interrupted- a total of five calls through that two years. The service was exceptionally good. This is going to be an important part of our expanding service and bring them to rural Canada and helping to bridge that digital divide. We CAn't run wire everywhere. We'll run it wherever we can, but but fixed wireless as a as an excellent opportunity for some areas that that right now we're either run served or very undersserved, and so this will be an important part of the.
Jerome Dubreuil: Way to test the product. Thanks. That’s helpful. Congrats again.
Speaker 12: Get way to WA. Did that the product thinks think that's helpful in condress against.
Speaker 12: Get way to WA. Did that the product thinks think that's helpful in condress against.
Speaker 44: Get way to WA that the product thinks think that's helpful in condressing against.
Speaker 13: Thank you your.
Speaker 13: Thank you your.
Speaker 34: Thank you your.
Multiple speakers: Thanks, Jerome. Thanks. Thanks, Jérome, and thanks, everyone, for joining us today. If you want to sit in on our AGM, it's available at the Investor Relations—at our Investor Relations site. Thanks for your time, and if there's any follow-ups, please reach out. Thank you
Speaker 14: Thanks Jerome, and thanks everyone for joining us today. If you want to sit in on our AGM, it's available at the Investor Relations ite at our Investor Relations site. Thanks for your time and if there's any follow-up, please reach outthank.
Speaker 14: Thanks Jerome, and thanks everyone for joining us today. If you want to sit in on our AGM, it's available at the Investor Relations ite at our Investor Relations site. Thanks for your time and if there's any follow-up, please reach outthank.
Speaker 2: Thanks Jerome, and thanks everyone for joining us today. If you want to sit in on our AGM, it's available at the Investor Relations at our Investor Relations site. Thanks for your time and if there's any follow-up, please reach outthank.
Operator: This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.
Speaker 15: This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.
Speaker 15: This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.
Speaker 1: This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.