Canada’s Rogers raises annual profit, free cash flow forecasts

Rogers Communications RCIb.TO, RCI.N raised its annual core earnings and free cash flow forecasts on Wednesday, betting on strong demand for its wireless services.

An expanding 5G network and plan bundles have helped Rogers attract cost-conscious consumers in a highly competitive market that includes players such as BCE BCE.TO and Telus T.TO.

Rogers said it now expects growth in adjusted core earnings to be between 33% and 36% in 2023, compared with its prior forecast of 31% to 35%.

The telecom giant raised its 2023 free cash flow outlook to between $2.2 billion and $2.5 billion, compared with the company’s previous forecast of $2.0 billion to $2.2 billion.

In the second quarter, Rogers’ revenue grew 30% from a year earlier to C$5.05 billion ($3.82 billion) but fell short of analysts’ average estimate of C$5.07 billion, according to Refinitiv data.

The company’s wireless revenue grew 10% to C$2.42 billion. Its media revenue grew 4% to C$686 million compared with C$659 million a year earlier. Nasdaq