Rogers Communications (TSX:RCI.B) grabbed headlines for all the wrong reasons in early July as its
network suffered a massive outage on Friday, July 8. Customers were unable to access Internet and
telephone services. The company was able to get the network back running after many frustrating
hours. However, some users will still without services stretching well into the weekend.
Shares of Rogers have dropped 2.9% in 2022 as of close on July 28. The stock has fallen 4.2% in the
month-over-month period. It recently announced that it would spend $150 million on customer credits
in a bid to make good on the damaging network outage.
The company released its second quarter 2022 earnings on July 27. Rogers reported total revenue of
$3.86 billion – up 8% from the previous year. Meanwhile, adjusted net income climbed to $463 million
or $0.86 on an adjusted diluted earnings per share basis. That was up 20% and 13%, respectively, from
the second quarter of 2021. Better yet, adjusted EBITDA shot up 35% year-over-year to $1.59 billion.
Adjusted EBITDA increased 20% to $3.13 billion in the year-to-date period. Free cash flow jumped 23%
to $859 million in the first six months of 2022.
Rogers currently possesses a favourable price-to-earnings ratio of 18. It maintained a quarterly dividend
payout of $0.50 per share. That represents a 3.3% yield. Rogers still looks like a strong hold even as it
wrestles with the fallout of the July 8 outage.
