Rogers raises profits 21%, snaps up MVNO

28 Jul 2010

Consolidated net income at Canadian quadruple-play operator Rogers Communications rose by 21% year-on-year to CAD451 million (USD434 million) in the three months ended 30 June 2010, on total revenues that climbed 5% to CAD3.029 billion. Second-quarter wireless revenues increased by 5% y-o-y to CAD1.700 billion, whilst the cable division posted a 4% overall rise to CAD790 million in turnover (including cable TV up 2% to CAD448 million, internet up 10% to CAD214 million and Rogers Home Phone flat y-o-y at CAD128 million). The Rogers Business Services division recorded 2Q10 revenue of CAD140 million, up 12% on the previous year. The company’s total residential cable high speed internet subscribers increased by 65,000 in twelve months to 1.643 million at end-June 2010, with consumer cable telephony lines rising by 97,000 in a year by the same date, to 975,000. Total circuit-switched residential lines stood at 97,000 at mid-2010, down by 68,000 y-o-y. Rogers added 422,000 post-paid and 48,000 pre-paid net new mobile subscribers year-on-year to reach a total of 8.626 million at the end of June 2010. Wireless data revenue growth continued strongly at 39% year-on-year to CAD436 million in the second quarter, representing approximately 27% of total mobile network revenue, compared to approximately 20% in the corresponding period of 2009. Rogers activated/upgraded approximately 385,000 smartphone devices in the three months under review, of which approximately 35% were for new mobile subscriber accounts. As at end-June smartphone users represented 35% of the operator’s overall post-paid mobile subscriber base, compared to 25% at mid-2009.

On 9 July 2010 Rogers reached an agreement to acquire the assets of independent MVNO Cityfone Telecommunications for a cash consideration of CAD24 million. Cityfone currently resells Rogers’ post-paid wireless voice and data services through ‘private label’ partnerships with major Canadian brands. Also within the last month Rogers announced the introduction of a new wireless brand called ‘chatr’, to focus on the growing urban zone based unlimited talk and text segment.

Canada, Rogers Communications