iPhone exclusivity helps beat profit forecasts: enjoy that while you can, Rogers!

28 Oct 2009

Canada’s largest mobile operator by subscribers Rogers Communications has reported third-quarter net profit that beat the forecasts of analysts polled by Bloomberg, helped in particular by its sales of Apple iPhone handsets and an increase in data ARPU from users of the popular device range amongst other smartphones. Although the quadruple-play operator’s net income in July-September 2009 fell to CAD485 million (USD455 million) from CAD495 million a year ago, profit per share excluding certain costs was CAD0.82, easily exceeding the average estimate of CAD0.54 in the Bloomberg survey. Total revenue at the cable, fixed line, broadband, wireless and media group climbed 1.8% to CAD3.04 billion, whilst operating profit at Rogers’s wireless unit, accounting for about three-fifths of sales, climbed 22% in the quarter from a year earlier. It added 210,000 wireless subscribers in the three-month period. Wireless data revenue climbed 46% year-on-year as Rogers benefited from its de facto exclusive status as iPhone provider, being currently the country’s sole operator of GSM/W-CDMA/HSPA networks. This will all change next month, however, when Rogers’ nationwide CDMA2000-based mobile rivals Bell and Telus both launch commercial HSPA-based services over a shared network, with both offering the iPhone amongst a range of other GSM/HPSA-based devices from the outset.

Canada, Rogers Communications