Rogers’ 4Q performance beats analysts’ expectations

16 Feb 2007

Canadian telecoms and cable TV group Rogers Communications has reported a fourth-quarter 2006 net profit of CAD176 million (USD151 million), compared with a loss of CAD67 million in 4Q 2005, fuelled largely by growth in its GSM mobile business, beating average analysts’ estimates, according to Thompson Financial. Quarterly revenue improved to CAD2.37 billion from CAD2.07 billion in the year-ago period. Wireless services accounted for more than half of its turnover in the quarter, bringing in CAD1.26 billion, up from CAD1.05 billion a year ago. The mobile unit added 189,300 net post-paid customers and 55,200 pre-paid clients to reach a total of 6.797 million users at end-2006. Average monthly revenue per user (ARPU) for post-paid customers increased to CAD69.04, up from CAD65.05 a year ago. Pre-paid ARPU increased to CAD15.15 from CAD13.30. Cable and internet business accounted for sales of CAD505 million, up from CAD453 million. The ‘Home Phone’ business, offering both cable and circuit-switched telephony, posted 4Q revenues of CAD99 million, up by CAD24 million, as it added 95,000 residential cable subscriber lines during the quarter to raise its total to 366,000. It is actively marketing a switch from traditional PSTN connections to its cable voice service. ‘We are fortunate to see continued healthy demand in the markets we serve and excellent responses from customers for our innovative wireless, cable, high speed internet and telephony products,’ said Ted Rogers, president and CEO. In its outlook for 2007, the company said it expects revenue of between CAD9.7 billion and CAD10 billion, with an operating profit of between CAD3.25 billion and CAD3.4 billion.

Canada, Rogers Communications