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

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A number of other factors as well. But if we step back and look at those two primary factors, the investment thesis not only continues to hold, but in our view, continues to improve with the passing of time. The second part of your question relates to having a fourth wireless competitor. We have thrived in a competitive landscape in the past, including in 2022. We’ve entered into transactions that will allow the buyer of freedom to enhance their competitive ability. And it’s over to us and we’re confident we have what we need to be able to compete in a four player market just as we’ve done in the past. And it’s all going to be about relative share. And in four player market there are a number of dynamics. And so when you talk about the impact, it isn’t necessarily anything that a fourth player picks up is at the expense of Rogers.

There are dynamics and market share and we’re comfortable as I said that we have what we need to be able to compete for share in that space.

Glenn Brandt: And then Dave, maybe if I could just add in a little bit more on you asked on synergies and capital expenditures. As Tony has mentioned, we’ve had more time to look at the synergies, we remain committed to that. Tony’s touched on that. The capital expenditure piece. The plan, the model, the forecast hasn’t changed from our initial evaluation of the transaction. I think, fundamentally, if you look at Shaw communications and how it operated its wireline and its wireless business over the last few years, a significant portion of its capital spend has gone into the wireless side of that balance sheet and investing in their build out of their wireless infrastructure. We have a strong national wireless network that we already have well in hand, in terms of investing.

Our acquisition of Shaw is an acquisition of the wireline side of their business. We will take Shaw communications, annual capital spend, and devote it to wireline assets in the West succinctly. And so if you work on that premise, you can I think, ladder up to what that business plan looks like and how it forecasts out. But in a nutshell, that’s how we prepare for taking in Shaw and the capital spend related to Shaw. It will be focused on wireline investing in the West to go along with what we’re already doing in our core business today. I think Tony answered the rest of it.

Operator: The next question is from Tim Casey with BMO Capital Markets. Please go ahead.

Tim Casey: Yes. Thanks. A few for me. One, just a clarification, Glenn. Just on that CapEx comment. Are you implying that you’ll spend the billion dollars a year in Western Canada or notionally the 700 that they’ve spent on wireline?

Glenn Brandt: I’m not going to get into the close specifics yet Tim. We’re in 2023. I’ve given our guidance for €˜23 standalone. We’ll see when we close the transaction before I start telling you what numbers we’re going to spend on Shaw in year. But we will invest in the wireline networks to invest in customer service, across our entire footprint. And once we take in Shaw, that entire footprint will go from coast to coast. We will invest as needed. And that’ll be an investment program that’s done over the years, not over months.

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