TORONTO – Times are very good for Ted Rogers and company and its shareholders. Profits are swelling, the dividend is increasing, and customers are growing to all aspects of the business, except for basic cable.
Rogers Communications Inc.’s consolidated operating profits grew by 20% in the second quarter of 2007, the company announced today.
In the three months ending June 30, adjusted operating profits were $898 million, compared with $746 million in the same quarter in 2006. Consolidated operating revenue rose 16% in Q2 of 2007 to more than $2.5 billion.
The board of directors also more than tripled the annual stock dividend from $0.16 to $0.50 per share, showing their confidence in Rogers “as a rapidly growing and increasingly profitable communications company,” the results release says.
Rogers signed up an additional 68,800 net subscribers to its voice over Internet telephone service, ending the quarter with 509,300 residential VoIP customers. It also netted an additional 133,000 wireless subscribers compared with the second quarter of 2006, while its wireless churn rate fell from 1.27% to 1.15%.
Digital cable households increased by a net 33,500 (to reach 1,237,100), while residential high-speed Internet customers grew by a net of 21,100 (to 1,363,500).
But the net number of basic cable subscribers fell by 11,700, to a total of 2,266,300.
The Q2 results noted the company’s agreement to buy five Citytv stations from CTVglobemedia, which was forced by the CRTC to divest them as part of its takeover of CHUM. The City television stations “will give Rogers a significant broadcast television presence in the largest markets in Canada and is a natural complement to Media’s existing television, radio and specialty channel assets,” the results statement said.
“This was a quarter in which we delivered solid growth, greatly simplified our corporate structure and laid the groundwork for returning increasing amounts of cash to our shareholders,” said Ted Rogers, President and CEO of Rogers Communications Inc. “While we have much to do in continuing to reinforce our services, I am confident that we are exceptionally well positioned to carry on our growth and success in the rapidly changing and highly competitive Canadian telecom, cable and media sectors.”
