Rogers doubles dividend; wireless growth disappoints

Last Updated: Monday, January 7, 2008 | 4:22 PM ET

CBC News

Rogers Communications Inc. said Monday it is doubling its annual dividend as the company predicted stronger revenue and operating profits for 2008.

But investors weren't impressed, as the company also released wireless subscriber figures that disappointed some analysts.

Rogers Class B 3-month stock chart

Rogers Class B shares were off $2.50 to close at $40.95 on the TSX — a tumble of almost six per cent.

Rogers announced before the opening of stock market trading that it will bump up its annual dividend immediately on its class A voting and class B non-voting shares to $1 apiece from the previous 50 cents. The dividend will be paid out quarterly at 25 cents per share.

"The actions taken today by our board of directors recognize the solid financial performance and strategic positioning of Rogers combined with our trajectory for continued double-digit revenue and operating profit growth in 2008," said Ted Rogers, the company's president and CEO, in a statement.

The firm said it expects its consolidated revenue for 2008 will come in between $11.2 billion and $11.5 billion, while its operating profits — after factoring out stock-based compensations costs and restructuring charges — are expected to hit a range of $4 billion to $4.2 billion.

But the company's wireless subscriber additions for the fourth quarter of 2007 fell short of the mark for some. Rogers said it added 183,300 subscribers — down 25 per cent from the 244,500 subscribers it added in the same quarter a year earlier.

UBS analyst Jeffrey Fan said he had been expecting 227,000 new wireless subscriber additions. 

The company's fourth-quarter and 2007 financial results are due to be released before stock markets open on Feb. 22.