TORONTO – Rogers saw fourth quarter profits grow by 8%, helped in part by the sale of a “record” number of new smart phones, causing it to boost its dividend by 11%.
The company said Wednesday that net income for the period ended December 31, 2011 was $327 million, up from $302 million last year, while operating revenue increased to $3.18 billion from $3.14 billion.
For its 2011 financial year, Rogers’ net profit rose by 4% to $1.56 billion from $1.5 billion in 2010, while total operating revenue increased 2% to $12.43 billion.
Growth at the company’s wireless division was up 2% to $1.82 million for the fourth-quarter, but those results were weighed down by costs related to smart phone activations and declining voice revenues. Rogers Wireless activated 791,000 additional smart phones, of which approximately 35% were for new subscribers. Postpaid wireless net subscriber additions totaled 42,000 for the quarter, a 7% drop year-over-year, which the company attributed to “heightened competitive intensity”.
Wireless data now comprises 37% of wireless network revenues, up from 31% last year, and Rogers estimated that 56% of its postpaid subscriber base were using smart phones by the end of 2011, up from 41% from 2010.
Cable operations reported a 3% increase in operating revenue to $838 million, and ended the period with 2.30 million total cable subscribers, 1.77 million digital cable customers, 1.79 million Internet customers, and 1 million cable telephony lines.
Rogers Media reported $428 million in operating revenue, a 3% increase over last year.
"During the fourth quarter we sold a record number of new wireless smartphones and increased the number of total cable service unit net additions by 59% versus last year in the face of intense competition, while at the same time we held our expenditures in solid check enabling us to continue to deliver healthy margins," said president and CEO Nadir Mohamed, in a statement.
"We not only continued our growth during 2011, but we also met our adjusted operating profit and free cash flow targets which enabled the returning of more than $1.9 billion cash to shareholders through a combination of increased dividends and continued share buybacks, while at the same time further strengthening our already healthy balance sheet."
In announcing its 2012 financial guidance, Rogers forecast an adjusted operating profit of $4.73 billion to $4.92 billion, compared to $4.72 billion for 2011.
In addition, the company’s board of directors authorized the repurchase of up to $1 billion worth of the company’s Class B non-voting shares during the 12-month period beginning February 24, 2012.
