TORONTO – Profits at Rogers rose 29% in the third quarter, ended September 30, while net income was $491 million, up from $380 million in the same period last year. Operating revenue increased to $3.15 billion from $3.11 billion.
Wireless data revenue growth grew by 28% and net post-paid subscriber additions totalled 74,000, helping drive wireless data revenue to comprise 36% of wireless network revenue. During the quarter, the company activated and upgraded 609,000 additional smart phones, of which approximately 42% were for new subscribers, compared to 529,000 in the prior year quarter. Smart phone subscribers, who typically generate ARPU nearly twice that of voice only subscribers, now represent 52% of Rogers’ overall post-paid subscriber base.
However, the costs surrounding the activations all those new smartphones contributed to a 1% dip in wireless profits, the company said.
The company's cable division reported a 4% rise in revenue to $826 million, and ended the quarter with 2.3 million total television subscribers. It’s digital cable subscriber base grew 3% to 1.77 million, representing 77% of the TV subscriber base.
Rogers reported 1.77 million Internet customers, bringing its penetration to approximately 47% of homes passed by its cable networks and 77% of its television subscriber base. It also saw a 5% increase to 1.04 million total cable telephony lines.
Rogers Media earned revenues of $407 million, up 10% over the same time last year, which it attributed primarily to increased advertising sales and new subscriber fees generated from Sportsnet One.
"Rogers delivered a balanced set of financial and subscriber results in the third quarter, with continued growth in the face of an extremely competitive environment," said president and CEO Nadir Mohamed, in a statement. "The strength of our asset mix, combined with a focused execution on our priorities – wireless data growth, customer retention and managing our cost structure – enabled Rogers to generate continued strong margins and free cash flow while increasing the amount of cash returned to shareholders by double digits year-over-year."
