Rogers shows slight increases in Q3 revenue, profit
October 24, 2012 | Canadian Press | Comments
Rogers Communications Inc. says its third-quarter revenue and profit were up slightly from the same time last year – meeting or beating analyst estimates on key financial measures.
The Toronto-based cable, wireless and media company’s net income was $495 million or 96 cents per share, up from $489 million or 90 cents per share.
Its revenue increased to $3.17 billion, up about 1% from the same time last year.
The revenue was largely in line with analyst estimates compiled by Thomson Reuters but net earnings were seven cents per share higher than anticipated.
Rogers said its adjusted operating profit rose by five per cent to $1.29 billion.
Analysts estimates put adjusted earnings per share at 89 cents based on 13 estimates and net EPS also at 89 cents.
Rogers president and CEO Nadir Mohamed said the higher revenue and operating profit reflected strong sales of smartphone subscriptions and wireless data revenue, as well as better margin in the wireless and cable businesses.
“Despite intensely competitive markets, we continued to successfully leverage our technology leadership to deliver new and innovative products and services and to invest in our networks at a healthy pace, while at the same time continuing to generate strong earnings and free cash flow,” Mohamed said in a statement.
The company’s media arm, which includes print, Internet and broadcast operations, had lower revenue due primarily to continued weakening of the advertising market. The segment’s revenue fell to $392 million from $407 million a year earlier. Adjusted operating profit fell to $50 million from $55 million.
Rogers has eliminated more than 650 jobs so far this year and has said it wants to increase its revenues.
The company also recently bought Score Media, attempting to bring younger viewers with its headline sports news and information and access to digital technology for mobile devices.
Rogers is Canada’s largest cable TV operator and wireless operator and is a major magazine publisher, TV and radio broadcaster and owner of the Toronto Blue Jays.
Rogers has said it expects to launch a credit card that will be part of a “virtual wallet” as the telecom company moves to mobile payments on smartphones.
Rogers and CIBC already have announced they will launch Canada’s first mobile payments system later this year, giving Canadians the ability to pay with their credit card using a smartphone.