Tony Staffieri: I’ll start with the first part from a technology strategy standpoint. We’ve said and continue to be on the path to work hand-in-hand with our U.S. Cable partners in the evolution of 10G and DOCSIS 4. And so we’ve, in anticipation of that, have been working aggressively on mid to high split into our network. The West is largely done, and we’re now focused on the East, which will make significant headway this year on that. And that’s a precursor to DOCSIS 4 which some of the U.S. players are already in trial mode. You will have seen that. And you expect us to move to trial mode by midyear roughly, depending on CPE availability. That’s the biggest capacity constraint for us and so that’s on the strategic side, and I’ll let Glenn talk to where it fits in the capital envelope for Cable.
Glenn Brandt: Yes. I think just succinctly, it is part of part of our priorities and initiatives in that $3.8 billion to $4 billion CAPEX guidance we’ve given. And so that’s one of the key initiatives and the modernization of our network plant, it’s just always ongoing.
Jerome Dubreuil: Great.
Paul Carpino: Thank you Jerome. Our next question Ariel.
Operator: Our next question comes from Aravinda Galappatthige of Canaccord. Please go ahead.
Aravinda Galappatthige: Good morning, thanks for taking my questions. A quick clarification, I think it was Glenn, you mentioned close to 1% ARPU growth adjusted for the Shaw Wireless subs. Can you just talk to the impact that international roaming had on it, was it positive, negative, was it material? And then secondly, just going back to the Cable topic. In terms of sort of sequential improvement. I know that you said that stabilization may be right at this point talk about time lines, but in terms of sequential improvement, any markers you can give and I’m trying to understand the extent to which the competitive intensity even in Ontario is affecting that negative 3 number and are you seeing any sort of easing there that can kind of help the cause? Thanks.
Glenn Brandt: Thank you, Aravinda. On the 1% ARPU growth, the roaming, it’s seasonal, and we still see ongoing impact from roaming. But really that’s — in terms of year-over-year changes, that’s largely washed through at this point. The 1% growth really is largely focused on base management emphasis on our premium brand that type of execution rather than any exogenous shock from international roaming either ads or otherwise. And then on the competitive intensity, I’ll leave that for Tony to jump in on Cable.
Tony Staffieri: Aravinda, on the Cable that if I understand your question, you’re really asking what’s going to be the catalyst for top line growth. And the decline you see is really market share declines in previous years that are flowing through. And so the primary catalyst you should look to us is penetration and market share gains. And as I said, as we continue to work on a number of things, certainly, the distribution channels we’ve talked about, but continue to have a leading product best Internet. Those are going to be the catalysts that are going to be the big drivers of return to revenue growth. And you’ll see a number of things coming from us in terms of product. Certainly the 10G DOCSIS 4, but in — but also the entertainment experience. And as we continue to work closely with Comcast and the Xfinity platform, they’re our next-generation launches that you’ll start to see, and we’re quite confident about the prospects of that.
Aravinda Galappatthige: Thank you.
Paul Carpino: Thanks Aravinda. Ariel, we will do three more quick questions please.
Operator: Our next question comes from Batya Levi of UBS. Please go ahead.
Batya Levi: Great, thank you. Just a couple of quick follow-ups. One on the Wireless churn side. It’d be helpful to just get a sense on how churn looks for the Rogers brand only and how that compares to the year ago period. And on the competitive intensity, you mentioned it was pretty heightened, do we see a return to more normal levels in January? And how do you expect the recent price increases to impact churn? Thank you.
Tony Staffieri: I’ll start with the second part of your question. In terms of what I would describe as competitive intensity in the fourth quarter, certainly saw that’s the traditional period, as we all know, for promotional activity. And what you typically see just because the market quiets down in January, you see some of that promotional activity dissipate and that’s what you’ve seen happening this January as is typically the case. Your second part of the question — or first part of the question related to churn. And I would say we’re really pleased with the churn dynamics we see on the Rogers brand and Rogers churn would be substantially lower than Fido churn for a number of different reasons, but it really speaks to our focus on the lifetime value of that customer segment and one of which you see in the ARPU growth.
Batya Levi: Got it, thank you.
Paul Carpino: Thanks Batya. Next question Ariel.
Operator: Our next question comes from Simon Flannery of Morgan Stanley. Please go ahead.
Simon Flannery: Hey, thank you very much. Good morning. You mentioned having two thirds of the country covered by wireline. I think in the past you’ve talked about an opportunity in enterprise with that added scale. If you’ve got any updates on that side? And then interested in your satellite direct-to-device opportunities. How do you see the business model for that, is that going to be a sort of a charge per text or some monthly subscription, any thoughts there about the financial opportunity that presents?
Tony Staffieri: Simon on the satellite to mobile phone second part of your question. We’re not prepared to talk about the pricing strategy yet on that. And so I would just park that. The first part of it is on the enterprise synergies. So two things you should separate in your mind, from a consumer standpoint, we covered two thirds of homes passed in Canada with our Cable footprint. But on the enterprise side, we have been over a long period of time investing in a national fiber network that connects where it needs to with our existing Cable network. And so we are national on enterprise and even more so with concluding the Shaw transaction. And we’re starting to see good healthy growth rates in the double digits on our enterprise side that we’re quite pleased with. So we’re seeing those, what I would call revenue synergies already starting to happen.
Glenn Brandt: I think maybe if I just add to that, the opportunity there is on the — maybe on the cost synergy side, as Tony said, with the acquisition. We now have more fiber assets to bring in-house rather than through a third party where we’ve needed to supplement. And so that’s part of the cost synergy opportunity that we can then lean in on.
Simon Flannery: Makes sense. Thanks.
Paul Carpino: Thank you Simon. Ariel, one more — time for one more question, please.
Operator: Certainly. Our final question comes from David McFadgen of Cormark. Please go ahead.
David McFadgen: Okay, great. Thanks for squeezing me in. Just two quick questions. Tony, when you talked about your growth, you said Alberta and BC are your fastest-growing markets. Are you — are you speaking primarily about the wireless business or does that also extend to Cable? And then secondly, just a quick question for Glenn. When I look at the working capital and 2023 had an outflow of $627 million. It’s obviously a big number. I was wondering, can you recover some of that in 2024 or do you think that, that was just needed now to sustain the business as it is? Thanks.
Tony Staffieri: David, real quick, on Alberta and BC growth. We’re seeing it in both, certainly in wireless, but we’re also seeing a very healthy return to growth on the home product side that we’re quite pleased with.
Glenn Brandt: And then, David, on your question on working capital. Working capital is always a target for capital efficiency for us. I would point out that year-over-year we do have the impact of the Shaw acquisition rolling through in 2023 that you would not have seen in the prior year end of 2022. And so that’s part of the increase. But, we focus on that with particular enthusiasm around managing our inventory levels, managing our delivery schedules and the like, that’s ongoing. I’m happy with the progress that we’ve made through the year. The scale side of this, that will be up year-over-year just because of the Shaw acquisition but I’m never satisfied with that level. That’s always an ongoing priority file.
David McFadgen: Okay, alright, thanks.
Paul Carpino: Thank you, David. And thank you for joining us on our call. And if there’s any follow-up, please feel free to reach out to the IR team. Thank you.
Tony Staffieri: Thank you.
Operator: This concludes today’s conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.
