(Reuters) -Canada's Rogers (NYSE:ROG) Communications forecast strong annual free cash flow after topping estimates for quarterly wireless subscriber additions on Thursday, as a surge in immigration boosted demand for its wireless and internet services.
The company's shares gained more than 2% in early trading.
Canada has been seeing a steady rise in immigration as it welcomes more people in a bid to grow its population and boost economy - increasing demand for Rogers' plans aimed at newcomers.
The country targeted 465,000 new residents in 2023 and has a goal of 485,000 in 2024 and 500,000 in 2025 - a move that analysts have said will benefit the country's big three carriers - Rogers, BCE (NYSE:BCE) and Telus (NYSE:TU).
Rogers expects free cash flow of C$2.9 billion to C$3.1 billion ($2.31 billion) in 2024, above Visible Alpha estimates of C$2.83 billion. It also beat quarterly estimates for the metric.
Promotions during the holiday season and customers upgrading their phones after the release of the iPhone 15, along with Rogers' robust 5G services have been resonating with Canadian subscribers.
The company added 184,000 net monthly bill-paying wireless phone subscribers in the fourth quarter, higher than analysts' expectations for additions of 171,830.
Rogers is the largest wireless services and cable system operator in Canada and with the purchase of Shaw, its cable subscribers span nationally.
The company completed the purchase of Shaw Communications (NYSE:SJR) last year after securing regulatory approval with commitments to pay financial penalties if it failed to create new jobs and invest to expand its network.
Total revenue for the quarter stood at C$5.34 billion ($3.97 billion), higher than estimates of C$5.29 billion, per LSEG data. Adjusted profit of C$1.19 also beat estimates.
Media revenue at the Toronto Blue Jays owner fell 8% as a result of lower sports-related revenue.
($1 = 1.3448 Canadian dollars)