Canada’s largest integrated telecom operator Rogers Communications reported better than expected second quarter earnings Thursday, $RCI saw a big jump in high priced and profitable post-paid mobile phone contracts, however the company declined to raise guidance.
Canada’s largest integrated telecom operator Rogers Communications reported better than expected second quarter earnings Thursday, $RC saw a big jump in high priced and profitable post-paid mobile phone contracts, however the company declined to raise guidance.
Rogers’ net income rose to C$538 million ($406.34 million) or C$1.04 per share, in the quarter, from C$528 million, or C$1.02 per share, a year earlier. Revenue rose to C$3.76 billion from C$3.62 billion. Excluding one-time items, the company earned C$1.07 per share, beating the expected C$1.05, according to Thomson Reuters I/B/E/S.
Rogers Communications Inc. (USA) Class B NYSE: $RCI
Market Reaction > $50.59 USD −0.36 (-0.71%) Closed: Jul 19, 4:02 PM EDT
Rogers has been a favorite among Technology and Telco investors as it was the first wireless operator in Canada to offer Internet of Things (IoT) as a service to business enterprises.
- Added 122,000 postpaid wireless subscribers, who pay for services monthly, up from the 93,000 users it added at the same time last year and 95,000 in the previous quarter.
- Average wireless customers paid 4 percent more per month in the quarter ended June 30.
- The postpaid churn rate fell to its lowest in nine years at 1.01 percent.
- Internet net additions of 23k – best Q2 results since 2005.
- Internet strength translating to positive net household additions
- Rogers said it invested C$240-million in its wireless business in the second quarter, up 52 per cent from the same time last year.
- For cable $RCI investment rose 24 percent to C$352 million.
Efforts to improve services for customers has “reflected in reduced churn, reduced calls into our call center, along with the solid uptick in digital adoption,” chief executive Joseph Natale said on a call with analysts.
Rogers streaming device Ignite TV has been in test mode in Ontario in the face of competition from BCE’s upgraded fiber network. $RCI said the “soft-launch” had drawn positive reviews from customers in the second quarter Reuters reported. Natale said that Ignite TV was “just the beginning” of a connected home solution, that could remotely control everything from home security to lighting and temperature control.
Source: Rogers Release
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