TORONTO – Rogers reported a 20% decrease in net profits for its fourth quarter of 2013, while operating revenue dropped 1% to $3.24 billion.
The company attributed the $18 million drop in operating revenue to weaker sales in its wireless and cable business. Approximately 790,000 smartphones were activated and upgraded in Q4, compared to 940,000 in the same period in 2012, which Rogers attributes in part to to the move from three- to two-year contacts and the associated pricing changes.
The company’s business solutions operating revenue, at $98 million, was higher than the $88 million reported during the same period last year as a result of the competion of Rogers’ acquisitions of Blackiron and Pivot Data Centres in 2013.
Media operating revenue also increased by $19 million in the fourth quarter, to $453 million, on the strength of revenue growth through Sportsnet and The Shopping Channel.
“While there are areas of strength overall, they are not satisfactory to me and over time I expect to do better,” said Rogers new president and CEO Guy Laurence in an earnings conference call Wednesday.
WIRELESS
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Data revenue was 13% higher in Q4, at $825 million, representing approximately 49% of total network revenue this quarter, compared to approximately 42% in the same period last year.
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Postpaid churn was 1.34% this quarter, compared to 1.40% for the same period last year, which Rogers attributed partly to new simplified plans and roaming plans that were introduced during this period.
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Gross postpaid subscriber additions decreased by 8% to 357,000 in the fourth quarter, which reduced net postpaid subscriber additions to 34,000, despite lower postpaid churn.
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Blended ARPU was down 3% to $58.59 compared to $60.48 during the same period last year
CABLE
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Rogers’ cable operating revenue grew a modest 2% during the fourth quarter to $871 million, due to continued growth in internet and phone subscribers, as well as the company’s May 2013 acquisition of Mountain Cable.
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The number of cable homes passed in the fourth quarter was 3.98 million, compared to 3.81 million during the same period in 2012.
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Internet and phone subscribers increased, to 1.96 million and 1.15 million respectively, compared to 1.86 million Internet and 1.07 million phone subscribers in Q4 2012.
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Total number of television subscribers decreased from 2.21 million to 2.13 in Q4.
MEDIA
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Operating revenue increased 4% to $453 million on the strength of higher sales at the Shopping Channel and Rogers’ acquisition of the Score in 2013, as well as higher advertising revenue from the NHL hockey games compared to the same quarter in 2012, which suffered lower sales as a result of the NHL player lockout.
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While operating revenue increased, Rogers also incurred higher operating expenses during the fourth quarter, which were partly due to the cost of airing more NHL hockey games ahead of the Winter Olympics.
