Rogers reports spike in wireless subscribers and rise in profit for Q2

The return of the Toronto Blue Jays has caused Rogers Communications Inc.’s media revenues to surge by 84 per cent during its second quarter of the year, contributing to the company’s overall Q2 earnings of $302 million -- an eight per cent increase from last year. Rogers CEO Joe Natale said on a second quarter earnings call with analysts Wednesday he fully expects “that we'll see overall industry growth in terms of Q2 when everyone finishes reporting” as COVID-19 restrictions continue to ease throughout the country. Natale said industry growth should look similar to that of 2019’s Q2, when all the companies are done reporting, with overall subscriber growth expected to be at four per cent, and that trend should continue into Q3. “It's just fueled by the sense of freedom. People are getting out there and using their devices and just feeling that mobility is an important part of their lives,” Natale said. “If you look at all the surveys that have been done around the so-called ‘COVID revenge spending’... heading into the latter part of this year, a new wireless device sits in the top five category.” Rogers reported a total revenue increase of 14 per cent for its second quarter, totalling nearly $3.58 billion for the three months ending June 30, up from $3.15 billion in the same period last year. The company’s release of its second quarter results come a week after it was reported that the telecoms industry has so far spent $8 billion on the 3500 MHz spectrum auction, more than double what industry analysts were predicting. The spectrum auction is not yet closed, therefore, Rogers did not discuss the implications in its quarterly call with investors. Rogers reported a net addition of 99,000 subscribers in wireless postpaid services, compared to a net loss of subscribers in the second period of 2020, for a total of 9.8 million wireless postpaid subscribers. It also reported a 28,000 decline in prepaid subscribers and added 9,000 net internet subscribers, plus 66,000 net Ignite TV subscribers. Service revenue was up 12 per cent. The monthly average revenue per user (ARPU) for its wireless subscribers was $49.16, up by $0.07 from 2020. Chief financial officer Tony Staffieri called the ARPU subscription revenue “somewhat flattish with mild” growth, however, said that is heading in the right direction after the “moderate-negative impact” on ARPU in Q1. Staffieri said its growth will be tied to the opening up of the economy as well as an increase in late-payment fees which are now at record lows across multiple industries. Roaming revenue was up around $25 million from one year ago but “still well below” the $115 million seen in 2019’s Q2. According to Staffieri, roaming is running at 20 per cent of where Rogers used to be two years ago and is going to “have a lot of volatility depending on international travel” in the coming quarters. Staffieri said migration to unlimited plans, which brought in $2.7 million this quarter, has slowed down, noting that consumers continued working at-home and therefore the need for unlimited is “just less compelling.” However, he said, data from the past week alone has shown that data usage on mobile bounced up to more than 50 per cent in terms of growth and Rogers expects that that demand will resume. Natale said Rogers is still on track with its Shaw Communications Inc. merger, having received “overwhelmingly positive” shareholder approval and having passed through the Alberta courts. The merger is waiting on the CRTC for transfer of the broadcast distribution licenses, ISED for spectrum transfer and the Competition Bureau for overall approval of the deal -- all of which should be completed in the first half of 2022, Natale said. “Our timeline hasn't changed,” he said. “And generally speaking ‘so far so good' is sort of our mindset… The Canadian landscape is an intensely competitive one and that will persist even after the completion of this deal, and we are still very bullish on the completion of the deal.” -- Reporting by Jenna Cocullo at jcocullo@thewirereport.ca and editing by Hannah Daley at hdaley@thewirereport.ca

Rogers reports spike in wireless subscribers and rise in profit for Q2

Broadcast | July 21, 2021

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

Rogers reports spike in wireless subscribers and rise in profit for Q2

Broadcast | July 21, 2021

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Related Stories

NDP critic calls for Rogers to reverse price hikes or be blocked from federal contracts

Rogers announces $7B sale of minority stake in regional backhaul infrastructure

Rogers spends $8 million upping capacity at Toronto stadium; TTC work remains underway

Legal dispute between Bell, Rogers over Discovery channels ends

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us