TORONTO – Rogers Communications second quarter results sure made it look like launching its new Infinite wireless plans was a great idea.
While financial results in the quarter were good as metrics like ARPU and ABPU crept up 2% and 4%, respectively, service revenue went up 3% and EBITDA rose 10% in the quarter ended June 30, as compared to the same quarter last year, it was the announcement that 365,000 customers have opted into Rogers’ new unlimited data offers which was the headline. That number is not chained to the quarter as it is the count as of Monday July 22, six weeks into the launch of Rogers Infinite. Click here for more on that from CEO Joe Natale.
Both total revenue ($3.78 billion) and total service revenue ($3.35 billion) for RCI increased 1% this quarter, largely driven by a 3% increase in wireless service revenue. The wireless service revenue growth was primarily a result of a larger postpaid subscriber base and continued increases in blended average revenue per user (ARPU), says the press release.
Cable revenue increased by 1% this quarter, as internet revenue growth of 7% continued to drive this segment. Rogers added over 22,000 new internet subscribers in the quarter.
Media revenue decreased by 3% this quarter, primarily as a result of the sale of our publishing business at the beginning of April 2019 and lower Toronto Blue Jays revenue, partially offset by higher Sportsnet revenue (Raptors!). Excluding the sale of the publishing business, media revenue would have been stable this quarter compared to 2018. The company added its radio division is seeing growth.
Media adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased by 20% this quarter, primarily as a result of lower player salaries at the Toronto Blue Jays.
Cash flow from operating activities was $1.06 billion this quarter, up 1%, and free cash flow was $609 million in Q2, up 2%.
