Rogers Communications Inc. (NYSE:RCI) Q4 2022 Earnings Call Transcript

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Tony Staffieri: Morning Batya and thanks for the question. I’ll start with the second one. And Glenn will come back to the first question. In terms of the overall business market, as you heard in my opening, or on a previous question, the population growth and the contributors to overall market growth that I talked about is certainly helping the consumer side. And as you would expect, we see a very quick follow on lag in the business market. So the size of the business market is improving as well while at the same time, our penetration rates in business and in particular, small business continues to improve. And so the growth that we’re seeing is, I would say slightly more index to small business. And that continues to be an area that we’re quite pleased with our performance in that and continue to see more opportunity for high penetration there.

Glenn Brandt: And then Batya on the cost to achieve the synergies. I think as a rough rule of thumb, if you think of it as we’re driving at a billion dollars a year of synergies, think of it as likely a one times turn on that in terms of our cost to achieve that will give you a rough rule of thumb to work off.

Operator: Our final question comes from David McFadgen of Cormark Securities. Please go ahead.

David McFadgen: Yes, thanks for squeezing in. So just looking at the guidance, obviously, the guidance looks quite strong. I was just wondering if you can give an update on revenue size, revenue volume versus revenue in the fourth quarter, and then sort of what you have is for next year? And then the second question is, I know that you are saying that your fees are comparable to say fiber offering. But have you explained the fact that they keep putting up very strong internet particularly cable competitors in their footprint, it seems like they’re taking share there. thanks.

Tony Staffieri: Thanks for the question, David. Again, I’ll start with the second one and Glenn, we’ll come back to the first one. As I said, on the subscriber share, internet side on cable it’s not lost on us in terms of our performance on customer share. And so it’s something we’ve looked at very closely and as I said, our response will continue to be very disciplined and measured. And what you see there is not a capability discrepancy but all you’re seeing play out is pricing. And as I said, I think we’ve got the right approach on this and we’re playing the long game. And so I wouldn’t confuse short term promotional pricing with the long term health of that business and the fundamentals in that business. I continued to reiterate that capability speeds on home internet, continue to far outpace where customer demand is.

And so average speeds would sit in the 300 megs and so when you compare that to top end speeds that are available in the marketplace, we’re well beyond that by a factor of approaching 10x. So that’s why I say network capability is not at all an issue. And in fact, as I said, we think of our network as a competitive advantage when you look at internet and our TV product combined across our footprint. And so that’s what you see playing out. In our view it’s as simple as that.

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