Rogers’ revenue, profits, Internet users, rise; cable subs fall

Rogers Communications Inc.’s operating revenue rose slightly to $3.2 billion for the second quarter of 2013 from $3.1 billion at the same time last year. The company released its second quarter financial results Wednesday, reporting profits of $532 million from $413 million during the same period a year ago. The company added 98,000 postpaid wireless subscribers during the three-month period, bringing its total postpaid subscriber base to 7,976,000, while it lost 56,000 prepaid wireless customers. Wireless revenues rose three per cent to $1.8 billion during the quarter, Rogers said. Rogers' cable division lost 35,000 TV subscribers and gained 6,000 Internet and 17,000 phone subscribers during the quarter, a release said, primarily due to competition and pricing discounts from BCE Inc., “the impact of seasonal disconnect and cord cutting,” president and CEO Nadir Mohamed said in a conference call with analysts. Robert Bruce, president of communications, said on the same call that the company's Internet prices have increased and would continue to rise "as Internet becomes the backbone product in the home." Rogers is enhancing the value of its Internet service and improving speeds, he said. “Monetizing the increased bandwidth usage will rapidly become the future across all our businesses, whether it's wireless or wireline,” he said, describing unlimited Internet offers as “short-sighted.” Cableco Show Communications Inc. is also trying to offset TV subscriber losses by cutting costs and focusing on Internet subscribers. Rogers’ media division's operating revenues rose from $440 million a year ago to $470 million in the second quarter, the company said. Mohamed described the advertising market, especially in publishing and broadcast TV, as tough, “but radio is continuing to perform well, and we're seeing good growth out of our Sportsnet and home shopping businesses, as well as the Blue Jays,” he said.

Rogers’ revenue, profits, Internet users, rise; cable subs fall

Brief | July 24, 2013

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