TORONTO – Smart phone users helped to boost profits at Rogers by 23% for its first quarter of 2010, the company reported Wednesday.
But increased competition in the wireless industry contributed to a decline in growth in its wireless subscriber adds. Rogers signed on 47,000 net postpaid wireless subscribers, 57% fewer than in the same quarter last year.
President and CEO Nadir Mohamed described the company as being “off to a solid start in 2010."
"Our focus on wireless data and attracting and retaining higher value customers continues to pay dividends, while the improved results in our media division reflect the actions we took in 2009 to improve our ratings and cost structure”, he said in a statement.
For the quarter ended March 31, 2010, Rogers recorded net income of $380 million, compared to $309 million for the same period last year. Operating revenue grew by 5% to $2.9 billion.
Wireless data revenue increased by approximately 40% over the corresponding period of 2009, to $415 million, which Rogers said reflects the continued penetration and growing usage of smart phone and wireless laptop devices which are driving the use of email, wireless Internet access, text messaging and other wireless data services. Data revenue represented approximately 26% of total network revenue, up 20% year-over-year.
The company upgraded or activated approximately 348,000 smart phones, predominately iPhone, BlackBerry and Android devices, of which approximately 35% were for new subscribers. Rogers now has 8.5 million total wireless customers.
The company’s cable operations saw revenue increase by 3% to $449 million due to modest gains in the number of cable, HDTV and high speed Internet customers. Of the 3.63 million homes passed by Rogers, 2.3 million have basic cable service, approximately 1.7 million (74%) have digital cable, and 1.6 million (71%) have Internet. Cable telephony lines in service grew 12%.
Revenues in the company’s Media division were up 6% to $301 million, which helped it earn an operating profit of $8 million, after a loss $10 million in the same quarter last year.
