Rogers Communications Revenue and Profit Nudge Up Slightly
Published on: 26th Oct 2011
Note -- this news article is more than a year old.
By: Ian Mansfield
Canada's Rogers Communications has reported that its third quarter revenues were essentially flat compared to last year up by just 1 percent to C$3.15 billion. Net income was also up by the same 1 percentage point to C$485 million.
Adjusted operating profit increased by 38% at Media, but was offset by a 1% decline at Wireless primarily reflecting the upfront costs associated with a record number of new smartphone sales and ongoing declines in voice ARPU, while adjusted operating profit at Cable Operations was relatively unchanged from the prior year period.
"Rogers delivered a balanced set of financial and subscriber results in the third quarter, with continued growth in the face of an extremely competitive environment," said Nadir Mohamed, President and Chief Executive Officer of Rogers Communications.
Wireless data revenue growth accelerated to 28% and net postpaid subscriber additions totalled 74,000, helping drive wireless data revenue to now comprise 36% of wireless network revenue. During the third quarter, the company activated and upgraded 609,000 additional smartphones, of which approximately 42% were for subscribers new to the company, compared to 529,000 in the prior year quarter. This resulted in subscribers with smartphones, who typically generate ARPU nearly twice that of voice only subscribers, representing 52% of the overall postpaid subscriber base as at September 30, 2011, up from 37% as at September 30, 2010.
The company ended the quarter with 9.29 million customers.