Rogers Communications : 2023 Q4 Results Earnings Press Release

ROGERS COMMUNICATIONS REPORTS FOURTH QUARTER 2023

RESULTS; ANNOUNCES 2024 FINANCIAL GUIDANCE

Rogers reports record 2023 results driven by strong execution on Shaw acquisition combined with industry- leading performance as more Canadians are choosing Rogers than any other carrier for second straight year

Rogers delivers industry-leading 2023 financial results led by strong execution by entire team

• Service revenue of $16.8 billion, up 27%
• Adjusted EBITDA1 of $8.6 billion, up 34%
• Free cash flow1 of $2.4 billion, up 36%
• 2023 postpaid mobile phone nets adds of 674,000, up 24%
• Ended year with 11.6 million wireless customers and 4.2 million retail Internet customers from coast to coast

Q4 results reflect industry-leading growth in Wireless and Cable operations

• Total service revenue up 30%; adjusted EBITDA up 39%
• Wireless service revenue up 9%; adjusted EBITDA up 10%
• • Q4 postpaid mobile phone net adds of 184,000; growth in pro forma Wireless blended ARPU of 1% (for Shaw Mobile); down 1% as reported
• Cable service revenue up 94%; adjusted EBITDA up 113%
• • Q4 retail Internet net additions of 20,000, more than double last year

Shaw integration and synergy targets continue ahead of plan

• Industry-leadingCable margins of 56%, up from 51% last year
• Synergies realized since closing now at $375 million; exited Q4 at $750 million run rate - six months ahead of plan
• Wireless and wireline market share gains accelerating in the West supported by largest and best 5G network and only coast-to-coast Internet network

Launched transformative firsts in technology for Canadians

• Agreements for satellite-to-mobile coverage with SpaceX and Lynk Global; made Canada's first test call
• Satellite-connectedwildfire sensors and AI cameras connected to Rogers' 5G network for early wildfire detection
• Essential 5G cellular connectivity on Highway 16 in B.C. providing key lifeline and improved public safety
• First carrier to activate 5G services for all riders at all TTC subway stations and busiest tunnels

Substantially reduced debt leverage ratio to 4.7 times at year-end, down over half a turn on synergy cost reductions, earnings growth, proceeds from asset sales, and commencing the payback of acquisition-related debt

Delivered on 2023 financial guidance; 2024 guidance targets robust growth

• Total service revenue growth range of 8% to 10%
• Adjusted EBITDA growth range of 12% to 15%
• Capital expenditures of $3.8 billion to $4.0 billion
• Free cash flow of $2.9 billion to $3.1 billion, compared to $2.4 billion in 2023

TORONTO (February 1, 2024) - Rogers Communications Inc. (TSX: RCI.A and RCI.B; NYSE: RCI) today announced its unaudited financial and operating results for the fourth quarter ended December 31, 2023.

"We delivered industry-leading results in the fourth quarter and for the full year," said Tony Staffieri, President and CEO. "We led the industry in growth, exceeded our Shaw targets, and delivered a number of innovative firsts to Canadians. We've delivered eight straight quarters of growth and I remain very confident in our future. Our industry- leading growth targets for 2024 reflect continued momentum and disciplined execution."

Rogers Communications Inc.

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Fourth Quarter 2023

Consolidated Financial Highlights

(In millions of Canadian dollars, except per share amounts,	Three months ended December 31	Twelve months ended December 31
unaudited)	2023	2022	% Chg	2023	2022	% Chg
Total revenue	5,335	4,166	28	19,308	15,396	25
Total service revenue	4,470	3,436	30	16,845	13,305	27
Adjusted EBITDA	2,329	1,679	39	8,581	6,393	34
Net income	328	508	(35)	849	1,680	(49)
Adjusted net income 1	630	554	14	2,406	1,915	26
Diluted earnings per share	$0.62	$1.00	(38)	$1.62	$3.32	(51)
Adjusted diluted earnings per share 1	$1.19	$1.09	9	$4.59	$3.78	21
Cash provided by operating activities	1,379	1,145	20	5,221	4,493	16
Free cash flow	823	635	30	2,414	1,773	36

Quarterly Financial Highlights

Revenue

Total revenue and total service revenue increased by 28% and 30%, respectively, this quarter, driven substantially by revenue growth in our Cable and Wireless businesses.

Wireless service revenue increased by 9% this quarter, primarily as a result of the cumulative impact of growth in our mobile phone subscriber base and revenue from Shaw Mobile subscribers acquired through the acquisition of Shaw Communications Inc. (Shaw, and the Shaw Transaction). Wireless equipment revenue increased by 17%, primarily as a result of an increase in new subscribers purchasing devices and a continued shift in the product mix towards higher-value devices.

Cable service revenue increased by 94% this quarter primarily as a result of the Shaw Transaction.

Media revenue decreased by 8% this quarter primarily as a result of lower sports-related revenue associated with a distribution from Major League Baseball in 2022.

Adjusted EBITDA and margins

Consolidated adjusted EBITDA increased 39% this quarter and our adjusted EBITDA margin increased by 340 basis points, as a result of improving synergies and efficiencies.

Wireless adjusted EBITDA increased by 10%, primarily due to the flow-through impact of higher revenue as discussed above. This gave rise to an adjusted EBITDA margin of 63.9%.

Cable adjusted EBITDA increased by 113% due to the flow-through impact of higher revenue as discussed above and the achievement of cost synergies associated with integration activities. This gave rise to an adjusted EBITDA margin of 56.1%.

Media adjusted EBITDA decreased by $53 million, or 93%, primarily due to lower sports-related revenue as discussed above.

Net income and adjusted net income

Net income decreased by 35% this quarter, primarily as a result of higher depreciation and amortization associated with assets acquired through the Shaw Transaction; higher restructuring, acquisition and other costs, primarily associated with Shaw acquisition- and integration-related activities; and higher finance costs, partially offset by higher adjusted EBITDA. Adjusted net income2 increased by 14% this quarter, primarily as a result of higher adjusted

EBITDA.

• Adjusted EBITDA is a total of segments measure. Free cash flow is a capital management measure. Adjusted diluted earnings per share is a non-GAAP ratio. Adjusted net income is a non-GAAP financial measure and is a component of adjusted diluted earnings per share. See "Non-GAAP and Other Financial Measures" for more information about each of these measures. These are not standardized financial measures under International Financial Reporting

Standards (IFRS) and might not be comparable to similar financial measures disclosed by other companies.

• Effective the second quarter of 2023, we retrospectively amended our definitions of (i) adjusted net income (see "Review of Consolidated Performance") and (ii) adjusted net debt, a component of debt leverage ratio and pro forma debt leverage ratio (see "Financial Condition").

Rogers Communications Inc.

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Fourth Quarter 2023

Cash flow and available liquidity

This quarter, we generated cash provided by operating activities of $1,379 million (2022 - $1,145 million); the increase is primarily a result of higher adjusted EBITDA, partially offset by higher interest paid. We also generated free cash flow of $823 million (2022 - $635 million), up 30% as a result of higher adjusted EBITDA, partially offset by higher interest on long-term debt and higher capital expenditures.

As at December 31, 2023, we had $5.9 billion of available liquidity3 (December 31, 2022 - $4.9 billion), consisting of $0.8 billion in cash and cash equivalents and $5.1 billion available under our bank credit and other facilities.

As a result of the Shaw Transaction, our debt leverage ratio was 4.72 as at December 31, 2023. This has been calculated on an adjusted basis to include trailing 12-month adjusted EBITDA of a combined Rogers and Shaw as if the Shaw Transaction had closed at the beginning of the trailing 12-month period. If calculated on an as reported basis without the foregoing adjustment, our debt leverage ratio3 as at December 31, 2023 was 5.0 (December 31, 2022 - 3.3). See "Financial Condition" for more information.

We also returned $265 million in dividends to shareholders this quarter and we declared a $0.50 per share dividend on January 31, 2024.

Strategic Highlights

The five objectives set out below guide our work and decision-making as we further improve our operational execution and make well-timed investments to grow our core businesses and deliver increased shareholder value. Below are some highlights for the year.

Build the biggest and best networks in the country

• Invested a record $3.9 billion in capital expenditures, primarily in our wireless and wireline network infrastructure.
• Recognized as the best and most reliable wireless network in Canada for the fifth straight year by umlaut in July 2023.
• Expanded Canada's largest and most reliable 5G network to 267 new communities.
• Launched 5G service for all transit riders in the busiest sections of the Toronto Transit Commission (TTC) subway system.
• Signed agreements with SpaceX and Lynk Global to bring satellite-to-mobile phone coverage and completed Canada's first test call.
• Secured 3800 MHz spectrum licences, making Rogers the largest 5G spectrum investor.
• Invested in wildfire detection and prevention technology to help combat climate change events.
• Delivered an additional 50 kilometres of 5G cellular connectivity on Highway 16 in British Columbia to improve public safety.

Deliver easy to use, reliable products and services

• Introduced Rogers Internet and TV services to customers in Western Canada.
• Upgraded all migrated legacy Shaw Mobile customers to Rogers 5G service.
• Introduced the red Rogers Mastercard with 48-month device equal payment plan with 0% interest and up to 3% cashback value for customers.
• Introduced Ignite Self Protect for customers to self-monitor their homes with connected devices.

Be the first choice for Canadians

• Led the industry in wireless subscriber additions with 674,000 postpaid mobile phone net additions.
• Launched our "We Speak Your Language" program across all retail stores, with the goal of serving customers in their preferred language.
• Secured number-one spots for flagship radio brands 98.1 CHFI, CityNews 680, and KiSS 92.5 for the Summer 2023 ratings period.
• Helped bring Taylor Swift to Canada in 2024 for six shows in Toronto and three in Vancouver.
• Signed a long-term broadcast agreement with UFC that will bring live UFC events to Sportsnet.

• Available liquidity and debt leverage ratio are capital management measures. Pro forma debt leverage ratio is a non-GAAP ratio. Pro forma trailing 12-month adjusted EBITDA is a non-GAAP financial measure and is a component of pro forma debt leverage ratio. See "Non-GAAP and Other Financial Measures" for more information about these measures. These are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other companies. See "Financial Condition" for a reconciliation of available liquidity.

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Fourth Quarter 2023

Be a strong national company investing in Canada

• Successfully completed the historic Shaw Transaction in April 2023.
• Repatriated the Shaw customer service teams as part of our commitment to 100% Canada-based teams.
• Expanded Connected for Success, our high-speed,low-cost Internet program to Western Canada.
• Announced a new five-year deal as title sponsor of the Shaw Charity Classic.
• Drove benefits to community organizations across Canada of over $100 million.

Be the growth leader in our industry

• Total service revenue up 27%; adjusted EBITDA up 34%.
• Generated free cash flow of $2,414 million and cash provided by operating activities of $5,221 million.
• Achieved strong Cable adjusted EBITDA margin expansion of 330 basis points; Shaw integration tracking ahead of plan.
• Delivered on industry-leading 2023 financial guidance.

Achieved 2023 Guidance

The following table outlines guidance ranges that we had previously provided and our actual results and achievements for the selected full-year 2023 financial metrics.

	2022	2023		2023
(In millions of dollars, except percentages)	Actual	Guidance Ranges	Actual		Achievement
Consolidated Guidance 1
Total service revenue	13,305	Increase of 26%	to	increase of 30%	16,845	27%	✔
Adjusted EBITDA	6,393	Increase of 33%	to	increase of 36%	8,581	34%	✔
Capital expenditures 2	3,075	3,700	to	3,900	3,934	n/m	✔✔
Free cash flow	1,773	2,200	to	2,500	2,414	n/m	✔
Achieved ✔			Exceeded ✔✔

n/m - not meaningful

1The table outlines guidance ranges for selected full-year 2023 consolidated financial metrics provided in our February 2, 2023 earnings release and subsequently updated on July 26, 2023. Guidance ranges presented as percentages reflect percentage increases over full-year 2022 results.

• Includes additions to property, plant and equipment net of proceeds on disposition, but does not include expenditures for spectrum licences, additions to right-of-use assets, or assets acquired through business combinations.

2024 Outlook

For the full-year 2024, we expect growth in total service revenue and adjusted EBITDA will drive higher free cash flow. In 2024, we expect to have the financial flexibility to maintain our network advantages and to continue to return cash to shareholders.

	2023		2024
(In millions of dollars, except percentages; unaudited)	Actual	Guidance Ranges 1
Consolidated Guidance
Total service revenue	16,845	Increase of 8%	to	increase of 10%
Adjusted EBITDA	8,581	Increase of 12%	to	increase of 15%
Capital expenditures 2	3,934	3,800	to	4,000
Free cash flow	2,414	2,900	to	3,100

• Guidance ranges presented as percentages reflect percentage increases over full-year 2023 results.

• Includes additions to property, plant and equipment net of proceeds on disposition, but does not include expenditures for spectrum licences, additions to right-of-use assets, or assets acquired through business combinations.

The above table outlines guidance ranges for selected full-year 2024 consolidated financial metrics. These ranges take into consideration our current outlook and our 2023 results. The purpose of the financial outlook is to assist investors, shareholders, and others in understanding certain financial metrics relating to expected 2024 financial results for evaluating the performance of our business. This information may not be appropriate for other purposes. Information about our guidance, including the various assumptions underlying it, is forward-looking and should be read in conjunction with "About Forward-Looking Information" (including the material assumptions listed under the heading "Key assumptions underlying our full-year 2024 guidance") and the related disclosure and information about various economic, competitive, and regulatory assumptions, factors, and risks that may cause our actual future financial and operating results to differ from what we currently expect.

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Fourth Quarter 2023

We provide annual guidance ranges on a consolidated full-year basis that are consistent with annual full-year Board of Directors-approved plans. Any updates to our full-year financial guidance over the course of the year would only be made to the consolidated guidance ranges that appear above.

About Rogers

Rogers is Canada's leading wireless, cable and media company that provides connectivity and entertainment to Canadian consumers and businesses across the country. Our shares are publicly traded on the Toronto Stock Exchange (TSX: RCI.A and RCI.B) and on the New York Stock Exchange (NYSE: RCI).

Investment community contact	Media contact
Paul Carpino	Sarah Schmidt
647.435.6470	647.643.6397
[e-mail]	[e-mail]

Quarterly Investment Community Teleconference

Our fourth quarter 2023 results teleconference with the investment community will be held on:

• February 1, 2024
• 8:00 a.m. Eastern Time
• webcast available at investors.rogers.com
• media are welcome to participate on a listen-only basis

A rebroadcast will be available at investors.rogers.com for at least two weeks following the teleconference. Additionally, investors should note that from time to time, Rogers' management presents at brokerage-sponsored investor conferences. Most often, but not always, these conferences are webcast by the hosting brokerage firm, and when they are webcast, links are made available on Rogers' website at investors.rogers.com.

For More Information

You can find more information relating to us on our website (investors.rogers.com), on SEDAR+ (sedarplus.ca), and on EDGAR (sec.gov), or you can e-mail us at [e-mail]. Information on or connected to these and any other websites referenced in this earnings release is not part of, or incorporated into, this earnings release.

You can also go to investors.rogers.com for information about our governance practices, environmental, social, and governance (ESG) reporting, a glossary of communications and media industry terms, and additional information about our business.

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Fourth Quarter 2023

About this Earnings Release

This earnings release contains important information about our business and our performance for the three and twelve months ended December 31, 2023, as well as forward-looking information (see "About Forward-Looking Information") about future periods. This earnings release should be used as preparation for reading our forthcoming Management's Discussion and Analysis (MD&A) and Audited Consolidated Financial Statements for the year ended December 31, 2023, which we intend to file with securities regulators in Canada and the US in the coming weeks. These documents will be made available at investors.rogers.com, sedarplus.ca, and sec.gov or mailed upon request.

The financial information contained in this earnings release is prepared using International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. This earnings release should be read in conjunction with our 2022 Annual MD&A, our 2022 Audited Consolidated Financial Statements, our 2023 First, Second, and Third Quarter MD&A and Interim Condensed Consolidated Financial Statements, and our other recent filings with Canadian and US securities regulatory authorities, which are available on SEDAR+ at sedarplus.ca or EDGAR at sec.gov, respectively.

Effective the second quarter of 2023, we retrospectively amended our definitions of (i) adjusted net income and (ii) adjusted net debt. See "Non-GAAP and Other Financial Measures" in this earnings release.

We, us, our, Rogers, Rogers Communications, and the Company refer to Rogers Communications Inc. and its subsidiaries. RCI refers to the legal entity Rogers Communications Inc., not including its subsidiaries. Rogers also holds interests in various investments and ventures.

All dollar amounts are in Canadian dollars unless otherwise stated and are unaudited. All percentage changes are calculated using the rounded numbers as they appear in the tables. Information is current as at January 31, 2024 and was approved by RCI's Board of Directors (the Board).

We are publicly traded on the Toronto Stock Exchange (TSX: RCI.A and RCI.B) and on the New York Stock Exchange

(NYSE: RCI).

The results from the acquired Shaw operations are included in our segment and consolidated results from the date of acquisition, consistent with our reportable segment definitions.

In this earnings release, this quarter, the quarter, or fourth quarter refer to the three months ended December 31, 2023, first quarter refers to the three months ended March 31, 2023, second quarter refers to the three months ended June 30, 2023, third quarter refers to the three months ended September 30, 2023 and year to date or full year refer to the twelve months ended December 31, 2023. All results commentary is compared to the equivalent period in 2022 or as at December 31, 2022, as applicable, unless otherwise indicated.

Trademarks in this earnings release are owned by Rogers Communications Inc. or an affiliate. This earnings release also includes trademarks of other parties. The trademarks referred to in this earnings release may be listed without the ™ symbols. ©2024 Rogers Communications

Reportable segments

We report our results of operations in three reportable segments. Each segment and the nature of its business is as follows:

Segment	Principal activities
Wireless	Wireless telecommunications operations for Canadian consumers and businesses.
Cable	Cable telecommunications operations, including Internet, television and other video (Video),
	Satellite, telephony (Home Phone), and smart home monitoring services for Canadian consumers and
	businesses, and network connectivity through our fibre network and data centre assets to support a
	range of voice, data, networking, hosting, and cloud-based services for the business, public sector,
	and carrier wholesale markets.
Media	A diversified portfolio of media properties, including sports media and entertainment, television and
	radio broadcasting, specialty channels, multi-platform shopping, and digital media.

During the quarter, Wireless and Cable were operated by our wholly owned subsidiary, Rogers Communications Canada Inc. (RCCI), and certain of our other wholly owned subsidiaries. Following the Shaw Transaction, aspects of Cable were also operated by Shaw Cablesystems G.P., Shaw Telecom G.P., and Shaw Satellite G.P. Media was operated by our wholly owned subsidiary, Rogers Media Inc., and its subsidiaries.

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Fourth Quarter 2023

Summary of Consolidated Financial Results

	Three months ended December 31	Twelve months ended December 31
(In millions of dollars, except margins and per share
amounts)	2023	2022	% Chg	2023	2022	% Chg
Revenue
Wireless	2,868	2,578	11	10,222	9,197	11
Cable	1,982	1,019	95	7,005	4,071	72
Media	558	606	(8)	2,335	2,277	3
Corporate items and intercompany eliminations	(73)	(37)	97	(254)	(149)	70
Revenue	5,335	4,166	28	19,308	15,396	25
Total service revenue 1	4,470	3,436	30	16,845	13,305	27
Adjusted EBITDA
Wireless	1,291	1,173	10	4,986	4,469	12
Cable	1,111	522	113	3,774	2,058	83
Media	4	57	(93)	77	69	12
Corporate items and intercompany eliminations	(77)	(73)	5	(256)	(203)	26
Adjusted EBITDA 2	2,329	1,679	39	8,581	6,393	34
Adjusted EBITDA margin 2	43.7 %	40.3 %	3.4 pts	44.4 %	41.5 %	2.9 pts
Net income	328	508	(35)	849	1,680	(49)
Basic earnings per share	$0.62	$1.01	(39)	$1.62	$3.33	(51)
Diluted earnings per share	$0.62	$1.00	(38)	$1.62	$3.32	(51)
Adjusted net income 2	630	554	14	2,406	1,915	26
Adjusted basic earnings per share 2	$1.19	$1.10	8	$4.60	$3.79	21
Adjusted diluted earnings per share 2	$1.19	$1.09	9	$4.59	$3.78	21
Capital expenditures	946	776	22	3,934	3,075	28
Cash provided by operating activities	1,379	1,145	20	5,221	4,493	16
Free cash flow	823	635	30	2,414	1,773	36

• As defined. See "Key Performance Indicators".

• Adjusted EBITDA margin is a supplementary financial measure. Adjusted basic earnings per share is a non-GAAP ratio. Adjusted net income is a non-GAAP financial measure and is a component of adjusted basic earnings per share. These are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other companies. See "Non-GAAP and Other Financial Measures" for more information about these measures.

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Fourth Quarter 2023

Results of our Reportable Segments

WIRELESS

Wireless Financial Results

	Three months ended December 31	Twelve months ended December 31
(In millions of dollars, except margins)	2023	2022	% Chg	2023	2022	% Chg
Revenue
Service revenue	2,020	1,856	9	7,802	7,131	9
Equipment revenue	848	722	17	2,420	2,066	17
Revenue	2,868	2,578	11	10,222	9,197	11
Operating expenses
Cost of equipment	846	734	15	2,396	2,115	13
Other operating expenses	731	671	9	2,840	2,613	9
Operating expenses	1,577	1,405	12	5,236	4,728	11
Adjusted EBITDA	1,291	1,173	10	4,986	4,469	12
Adjusted EBITDA margin 1	63.9 %	63.2 %	0.7 pts	63.9 %	62.7 %	1.2 pts
Capital expenditures	334	421	(21)	1,625	1,758	(8)
1 Calculated using service revenue.
Wireless Subscriber Results 1
	Three months ended December 31	Twelve months ended December 31
(In thousands, except churn and mobile phone ARPU)	2023	2022	Chg	2023	2022	Chg
Postpaid mobile phone 2, 3
Gross additions	703	537	166	2,007	1,523	484
Net additions	184	193	(9)	674	545	129
Total postpaid mobile phone subscribers 4	10,498	9,392	1,106	10,498	9,392	1,106
Churn (monthly)	1.67 %	1.24 %	0.43 pts	1.11 %	0.90 %	0.21 pts
Prepaid mobile phone
Gross additions	156	216	(60)	867	796	71
Net (losses) additions	(73)	(7)	(66)	(50)	89	(139)
Total prepaid mobile phone subscribers 4,5	1,111	1,255	(144)	1,111	1,255	(144)
Churn (monthly)	6.20 %	5.90 %	0.30 pts	6.12 %	4.90 %	1.22 pts
Mobile phone ARPU (monthly) 6	$57.96	$58.69	($0.73)	$57.86	$57.89	($0.03)

• Subscriber counts and subscriber churn are key performance indicators. See "Key Performance Indicators".

• On April 3, 2023, we acquired approximately 501,000 Shaw Mobile postpaid mobile phone subscribers as a result of our acquisition of Shaw, which are not included in net additions. As at December 31, 2023, we had completed migrating these subscribers to the Rogers network; there were 18,000 deactivated

subscribers that could not be migrated and were therefore removed from our postpaid mobile phone subscriber base effective December 31, 2023.

• Effective April 1, 2023, we adjusted our postpaid mobile phone subscriber base to remove 51,000 subscribers relating to a wholesale account.
  4 As at end of period.
  5 Effective December 1, 2023, we adjusted our Wireless prepaid subscriber base to remove 94,000 subscribers as a result of a change to our deactivation policy from 90 days to 30 days.
  6 Mobile phone ARPU is a supplementary financial measure. See "Non-GAAP and Other Financial Measures" for an explanation as to the composition of this measure.

Service revenue

The 9% increase in service revenue this quarter was primarily a result of:

• the cumulative impact of growth in our mobile phone subscriber base over the past year; and
• the impact of the Shaw Mobile subscribers acquired through the Shaw Transaction in April 2023.

The decrease in mobile phone ARPU this quarter was primarily a result of the impact of the Shaw Mobile subscribers acquired through the Shaw Transaction in April 2023.

The continued significant postpaid gross and net additions this quarter were a result of sales execution in a growing Canadian market.

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Fourth Quarter 2023

Equipment revenue

The 17% increase in equipment revenue this quarter was primarily as a result of:

• an increase in new subscribers purchasing devices; and
• a continued shift in the product mix towards higher-value devices; partially offset by
• lower device upgrades by existing customers.

Operating expenses

Cost of equipment

The 15% increase in the cost of equipment this quarter was a result of the equipment revenue changes discussed above.

Other operating expenses

The 9% increase in other operating expenses this quarter was primarily a result of:

• higher costs associated with the increased revenue and subscriber additions including commissions and costs associated with our expanded network; and
• investments made in customer service.

Adjusted EBITDA

The 10% increase in adjusted EBITDA this quarter was a result of the revenue and expense changes discussed above.

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Fourth Quarter 2023

CABLE

Cable Financial Results

	Three months ended December 31	Twelve months ended December 31
(In millions of dollars, except margins)	2023	2022	% Chg	2023	2022	% Chg
Revenue
Service revenue	1,965	1,011	94	6,962	4,046	72
Equipment revenue	17	8	113	43	25	72
Revenue	1,982	1,019	95	7,005	4,071	72
Operating expenses	871	497	75	3,231	2,013	61
Adjusted EBITDA	1,111	522	113	3,774	2,058	83
Adjusted EBITDA margin	56.1 %	51.2 %	4.9 pts	53.9 %	50.6 %	3.3 pts
Capital expenditures	448	235	91	1,865	1,019	83
Cable Subscriber Results 1
	Three months ended December 31	Twelve months ended December 31
(In thousands, except ARPA and penetration)	2023	2022	Chg	2023	2022	Chg
Homes passed 2,3,4,5	9,943	4,804	5,139	9,943	4,804	5,139
Customer relationships
Net (losses) additions	(1)	(6)	5	(2)	6	(8)
Total customer relationships 2,3,4.5	4,636	2,590	2,046	4,636	2,590	2,046
ARPA (monthly) 6	$141.96	$129.92	$12.04	$142.58	$130.12	$12.46
Penetration 2	46.6 %	53.9 %	(7.3 pts)	46.6 %	53.9 %	(7.3 pts)
Retail Internet
Net additions	20	7	13	77	52	25
Total retail Internet subscribers 2,3,4,5	4,162	2,284	1,878	4,162	2,284	1,878
Video
Net (losses) additions	(12)	(10)	(2)	15	32	(17)
Total Video subscribers 2,3,4	2,751	1,525	1,226	2,751	1,525	1,226
Smart Home Monitoring
Net losses	(1)	(1)	-	(12)	(12)	-
Total Smart Home Monitoring subscribers 2	89	101	(12)	89	101	(12)
Home Phone
Net losses	(38)	(18)	(20)	(116)	(76)	(40)
Total Home Phone subscribers 2,3,4	1,629	836	793	1,629	836	793

• Subscriber results are key performance indicators. See "Key Performance Indicators".
  2 As at end of period.
  3 On April 3, 2023, we acquired approximately 1,961,000 retail Internet subscribers, 1,203,000 Video subscribers, 890,000 Home Phone subscribers, 4,935,000 homes passed, and 2,191,000 customer relationships as a result of the Shaw Transaction, which are not included in net additions, but do appear in the ending total balances for December 31, 2023. The acquired Satellite subscribers are not included in our reported subscriber, homes passed, or customer relationship metrics.
  4 On November 1, 2023, we acquired approximately 22,000 retail Internet subscribers, 8,000 Video subscribers, 19,000 Home Phone subscribers, 8,000 homes passed, and 30,000 customer relationships as a result of our acquisition of a Cable services reseller. None of these subscribers are included in net additions.
  5 Effective October 1, 2023, and on a prospective basis, we reduced our retail Internet subscriber base by 182,000 and our customer relationships by 173,000 to remove Fido Internet subscribers as we stopped selling new plans for this service as of that date. Given this, we believe this adjustment more meaningfully reflects the underlying organic subscriber performance of our retail Internet business.
  6 ARPA is a supplementary financial measure. See "Non-GAAP and Other Financial Measures" for an explanation as to the composition of this measure.

Rogers Communications Inc.

10

Fourth Quarter 2023