Expansion of its post-paid wireless phone service customer base by more than 98,000 as well as growth in its cable and media businesses helped pump in $3.2 billion in revenue for Rogers Communications Inc. (TSE:RCI.A)
In its second quarter earnings report today, the local telecom giant beat most financial analysts estimates by announcing a $497 million adjusted net income, representing a four per cent increase from last year’s numbers. The consolidated revenue growth of 3 per cent reflects 3 per cent growth each for wireless and cable and 7 per cent growth in media.
“During the second quarter, we delivered both revenue and earnings growth while successfully leveraging superior networks to deliver strong data growth across both our broadband cable and wireless platform,” said Nadir Mohamed, chief executive officer of Rogers, “At the same time, we also drove further margin expansion at our wireless, cable, and business solutions divisions and continue to make significant investments in our networks and service infrastructure.”
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Rogers said its net new post-paid wireless subscribers number around 98,000 compared to 87,000 year-over-year.
Wireless data revenue grew by 18 per cent and now comprises 46 per cent of wireless network revenue. The company activated and upgraded 678,000 smart phones of which 3.7 per cent were for new subscribers.
Rogers customers with smart phones now represent 72 per cent of the company’s overall postpaid customers. Many of these customers subscribed to the lucrative three-year mobile phone contract which the Canadian Radio-television and Telecommunications Commission (CRTC) recently effectively put an end to with a new wireless code which allows users to terminate their contracts after two years without having to pay any cancellation fees.
Wireless carriers, after initially reacting positively to the code are now seeking to overturn the code which seeks to provide protection to consumers.