Rogers wireless revenue falls on lower roaming fees
Average revenue per postpaid user falls 3.8 per cent from last year
Rogers Communications Inc. says its wireless division brought in less revenue in the third quarter as it dropped the prices of its roaming packages.
The price cut comes ahead of the new wireless code of conduct, which comes into effect in December and would limit the amount companies can charge for international roaming.
Revenue at the company’s wireless segment dropped by two per cent to $1.85 billion from $1.89 billion in the same time period a year ago.
Rogers says in its report that if the roaming fees are excluded entirely, revenue would have climbed by one per cent.
This summer, Rogers along with Telus and Bell, launched an extensive PR campaign aimed at turning public opinion against U.S. telecom giant Verizon, who they feared would enter the Canadian market. Verizon eventually said it never seriously planned to enter the market, but not before the Canadian carriers were criticized for charging too much for service.
The federal government has said it believes wireless prices are too high in Canada, and wants to bring in a fourth competitor in most markets to bring prices down.
Rogers says its average revenue per postpaid user, or ARPU, a key measure for wireless companies, actually fell 3.8 per cent to $68.77 per month from $71.50 per month a year earlier.
The disappointing results in the company’s wireless segment were offset, however, by higher cable revenue, which rose four per cent to $873 million, and higher media revenue, up 12 per cent to $440 million.
Rogers says its third-quarter adjusted net income was up one per cent from last year, rising to $501 million — slightly ahead of expectations, amounting to 97 cents per share on a diluted basis, up from 96 cents or $495 million in the third quarter of 2012.
Analysts had projected Rogers would have 96 cents per share of adjusted earnings, according to Thomson Reuters estimates.
The telecom and media company's operating revenue grew two per cent to $3.22 billion from $3.18 billion in the third quarter of 2012.
with files from the Canadian Press