TORONTO – First quarter revenue at Rogers Media jumped 10.8% to $266 million, driven by a range of factors.
The division (which owns such assets as Rogers Sportsnet, OMNI, The Shopping Channel, 46 radio stations and a magazine group that publishes Maclean’s, Chatelaine and many others) also saw its expenses climb by 9.7% in the quarter to $249 million. Operating profit however, still jumped 30.8% to $17 million.
The increase in this division’s revenue for the three months ended March 31, 2007 over the corresponding period in 2006 reflects growth across all of media’s divisions as well as the impact of new initiatives, says the press release. Publishing revenue was positively impacted by the launch of Chocolat and the Canadian edition of Hello! in the third quarter of 2006.
Revenues also increased due to the acquisition of five new radio stations in Alberta in January 2007 from OK Radio and a higher subscriber base at Sportsnet. The Shopping Channel continued to generate increased consumer demand for products. Sports Entertainment (which includes the Rogers Centre stadium and the Toronto Blue Jays) revenue grew through higher spring training revenue and more events at the Rogers Centre. The consolidation of the Biography Channel and G4TechTV as a result of increased ownership in the second quarter of 2006 also contributed to the increase in revenue.
The increase in Media operating expenses for the three months ended March 31, 2007 compared to the corresponding period in 2006 is primarily due to costs associated with the launch of new magazines in the third quarter of 2006, the five new radio stations and the consolidation of the Biography Channel and G4TechTV. Cost increases were partially offset by lower general and administrative costs across all divisions.
Additional costs were incurred from Rogers Centre renovations and improvements at the main Rogers campus in downtown Toronto in preparation for the relocation of Rogers Sportsnet to that office.
