TORONTO – “Exceptional” results at Rogers Communications’ wireless division helped to boost revenues and profits during its second quarter, the company said Thursday.
Rogers posted a profit of $538 million for the three months ended June 30, up 2% from $528 million in the same period a year ago. The Toronto-based company said that both net income and adjusted net income (which grew 12% to $554 million), increased this quarter as a result of higher adjusted EBITDA, which was partially offset by the higher associated income taxes. Growth in net income was lower as 2017 net income included a gain on disposition of certain real estate assets.
Total revenue increased 4% to $3.76 billion, largely driven by a 5% uptick in wireless service revenue growth. Wireless equipment revenue jumped 14% this quarter as the company activated more devices, driven by the highest-ever level of second quarter postpaid gross additions of 389,000 and postpaid churn of 1.01%, the lowest rate it has achieved in nine years. Cable revenue increased 2% driven by Internet revenue growth as the company continued to roll out its Ignite Gigabit Internet across its cable footprint. Media revenue decreased 5% this quarter as a result of lower revenue at the Toronto Blue Jays.
"We delivered another strong quarter with solid financial and operating results, led by exceptional results in Wireless. This included the best Wireless postpaid churn and the best Q2 net additions since 2009," said president and CEO Joe Natale, in the company’s Q2 press release. "In Cable, our competitive Internet advantage drove growth in revenue and adjusted EBITDA, delivering the best Q2 net additions since 2005. We continue to strategically roll out Ignite TV while getting ready for the next set of connected home services. Overall, we continue to make great progress on our plan, including meaningful improvements in the customer experience and margin expansion."
The company ended the quarter with 8.92 million wireless postpaid customers and 1.71 million prepaid customers, up 122,000 and down 13,000, respectively, year-over-year, for a total of 10.63 million. On the TV side, Rogers lost 9,000 cable customers for a total of 1.72 million; added 23,000 Internet customers to sit at 2.37 million broadband subs; and added 3,000 home phone customers and now has 1.12 million of those households.
Click here for Rogers’ full second quarter financial report.
