Rogers increases profit, revenue in Q2
Rogers Communications Inc. felt the impact of new competition in the wireless sector, but the communications and media giant still managed to either meet or beat analyst expectations with strong second-quarter growth.
Net income for the Toronto-based wireless, cable and media company was up 21 per cent from a year earlier, rising to $451 million US or 78 cents per share. Revenue was also up, rising five per cent to $3.03 billion US.
On an adjusted basis, net income was $464 million or 80 cents per share, compared with average analyst expectations of 68.8 cents per share according to Thomson Reuters.
The company says increased competition resulted in fewer net subscriber additions to its wireless services, compared with last year.
But the wireless division did continue to grow and accounted for $1.7 billion of revenue, or more than half of the total for the entire Rogers business, which also includes cable, internet, phone, specialty and conventional television, radio, magazine publishing and the Toronto Blue Jays.
Wireless data services were the main driver of the division's revenue growth, while profit margins also improved.
"Our results for the second quarter of 2010 demonstrate continued revenue and subscriber growth combined with healthy operating leverage resulting from efficiency gains across the business," said president and chief executive Nadir Mohamed in a release.
The company said it wasn't making any changes to the 2010 financial guidance it issued in February.
Rogers Cable, including cable and internet services, Rogers Business Solutions and retail stores, had $1 billion in revenue (up three per cent) while Rogers Media's revenue rose to $396 million from $366 million (up eight per cent).