Rogers' profit goes down as sales continue to climb

30 Apr 2009

In the first quarter of 2009 Canadian cableco and mobile operator Rogers Communications posted a 5% year-on-year rise in revenues to CAD2.75 billion (USD2.25 billion), although operating profit and net income both fell, by 1% and 10% to CAD1.08 billion and CAD309 million, respectively. Rogers’ wireless division made the largest contribution to the results, with revenues growing 8% y-o-y to CAD1.54 billion. Post-paid customers grew by 543,000 on an annual basis to 6.554 million at end-March 2009, with ARPU decreasing by CAD0.40 to CAD72.15; post-paid monthly churn in 1Q 2009 was almost unchanged in a year, at 1.09%. Pre-paid subscribers increased by 65,000 y-o-y to 1.460 million, with ARPU down CAD0.60 to CAD15.10, and churn down slightly to 3.63%. Blended ARPU fell slightly to CAD61.57 compared to CAD61.73 in Q1 2008. For the three months ended 31 March 2009, wireless data revenue increased by approximately 43% over the corresponding period of 2008, to CAD298 million, and represented approximately 20% of total network revenue, compared to 15% twelve months earlier. Rogers activated more than 360,000 3G/3.5G devices, including iPhone 3G and BlackBerry smartphones, during the first quarter of 2009. Approximately 40% of these activations were to new customers.

Rogers’ Cable division ended the quarter with 857,000 residential voice-over-cable telephony lines, which brings its total penetration of cable telephony lines to 37% of basic cable subscribers, up from 31% at 31 March 2008. Cable high speed internet net additions shrank to 11,000 in the most recent quarter, down from 39,000 a year before, taking the total residential broadband customer base to 1.582 million at end-March. Rogers also had just 9,000 ADSL subscribers at the end of the first quarter, down from 19,000 at 31 March 2008, whilst its business division had 37,000 ‘broadband data circuits’, up by 6,000 in a year.

Canada, Rogers Communications