TORONTO – Rogers said Thursday that third quarter revenues increased by 2%, aided by growth in its cable and media divisions.
Consolidated revenue for the period ended September 30 was $3.22 billion, up from $3.18 billion at the same time last year. Net income under standard accounting was down slightly to $464 million from $466 million last year, while adjusted net income was $501 million, up from $495 million.
The company reported a 4% revenue growth in its Cable division to $873 million; a 12% increase at its Media division to $440 million; and an 8% increase its Business Solutions group to $93 million compared to the same quarter last year. However, these gains were partly offset by a 2% decline to $1.84 million in its Wireless division revenue.
Wireless
Rogers explained the drop in wireless network revenue as due to the recent introduction of lower priced roaming plans, pricing changes made over the past year and heightened competition in wireless voice services, partially offset by higher adoption and usage of wireless data services
Wireless data revenue grew by 15% from last year and now represents 48% of wireless network revenue. Wireless activated and upgraded 574,000 smartphones, down from approximately 707,000 in the same period last year, of which approximately 38% were new subscribers. Customers with smartphones now represent 73% of wireless postpaid subscribers, up from 65% last year.
Rogers reported 8 million total postpaid subscribers and 1.4 million total prepaid subscribers.
Cable
Cable operating revenue was higher this quarter compared to the same period last year, mainly because of Internet and cable phone growth, partially offset by a decline in television revenue, Rogers said.
Its digital cable subscriber base represented 83% of its total television subscriber base at the end of the quarter, compared to 79% at September 30, 2012. Rogers said that its larger selection of digital content, video on-demand, HDTV and PVR equipment continues to contribute to the increasing penetration of the digital subscriber base as a percentage of its total television subscriber base.
Rogers ended the quarter with 3.96 million cable homes passed; 2.1 million TV subscribers; 1.9 million Internet subscribers; and 1.1 million phone subscribers. Total service units (which include television, Internet and phone subscribers) were 5.2 million.
Media
Media operating revenue was higher this quarter compared to the third quarter in 2012 mainly because of revenue growth at Sportsnet, higher attendance at Toronto Blue Jays games and higher sales at The Shopping Channel.
“During the third quarter, we delivered both revenue and adjusted operating profit growth with strong data growth across our leading wireless and broadband cable platforms," said president and CEO Nadir Mohamed, in a statement. "We also delivered strong and expanding margins at our Wireless and Cable segments as well as accelerated growth at our Business Solutions and Media segments. And we made significant investments in our networks, Media brands and service infrastructure while delivering even greater value to our customers. While there has been a continued level of heightened regulatory activity in the Canadian telecom sector, our core focus remains steadfastly upon delivering the most innovative products, greater value and reliable service to our customers."
