TORONTO – Rogers Communications credited the Toronto Blue Jays’ winning ways for helping to drive up third quarter profits by 40%.
Rogers said Thursday that operating revenue for the period ended September 30, 2015 totalled $3.38 billion, up 4% from $3.25 billion year-over-year, while net income was $464 million, up from $332 million. On an adjusted basis, net income rose 17% from $405 million in the third quarter of 2014 to $472 million.
Consolidated revenue increased 4% this quarter, reflecting revenue growth of 5% in Wireless, 1% in Cable, and 8% in Media. Wireless revenue increased on greater smartphone sales and higher network revenue from the continued adoption of higher ARPA-generating Rogers Share Everything plans. Cable revenue increased due to continued Internet revenue growth and Media revenue increased primarily as a result of growth at Sportsnet and the Toronto Blue Jays.
Rogers activated and upgraded approximately 737,000 smartphones for new and existing subscribers this quarter, a 20% increase compared to the approximately 614,000 in the same period last year, primarily a result of a greater number of hardware upgrades by existing subscribers, reads the press release. The percentage of subscribers with smartphones was 88% of its total postpaid phone subscriber base at quarter end.
The company ended the quarter with 8.24 million wireless postpaid customers and 1.58 million prepaid customers, after adding 77,000 customers in both columns. On the TV side, Rogers lost 31,000 cable customers to fall to 1.92 million; added 24,000 internet customers to sit at 2.03 million broadband subs, and lost 14,000 home phone customers and now has 1.10 million of those households.
"It was a busy and productive quarter”, said president and CEO Guy Laurence, in the earnings’ news release. “We delivered solid financial and operating metrics again this quarter whilst delivering a number of new and exciting services to our customers".
Rogers’ board of directors also declared a quarterly dividend totalling 48 cents per share on each of its outstanding Class B Non-Voting shares and Class A Voting shares. The quarterly dividend will be paid on January 4, 2016 to shareholders of record on December 11, 2015.
