TORONTO – Revenue, operating profit and subscriber levels increased across the board at Rogers Communications in the first quarter of 2007, ended March 31st.
Consolidated revenue grew 15.8% to $2.3 billion while consolidated operating profit rose 34.3% to $798 million.
Wireless postpaid ARPU (average revenue per user per month) jumped 8.7% year-over-year to $67.64, while postpaid churn fell to under 1.2%. Postpaid subscriber net additions grew 5.5% in Q1, while quarterly net additions of basic cable, digital cable, high-speed Internet and cable telephony subscribers all increased versus first quarter 2006.
"I think it’s thrilling when all three of our business units are each delivering solid double digit organic growth," company founder and CEO, Ted Rogers, told an analysts conference call late Tuesday afternoon.
Some highlights, as set out by the RCI press release, include:
* Strong subscriber growth continued at Rogers Wireless, with quarterly net postpaid additions of 94,500 compared to 89,600 in the first quarter of 2006.
* The wireless postpaid ARPU increase reflects a 45.9% lift in data revenues, which represented 12.3% of total wireless network revenue in the quarter.
* Rogers Cable ended the quarter with more than 440,000 residential voice-over-cable telephony subscriber lines, with net additions of 74,600 cable telephony subscriber lines for the quarter (of which approximately 18,400 were migrations from the circuit-switched platform). The combined number of local telephony lines on both the cable telephony and circuit-switched platforms from Rogers Home Phone and Rogers Business Solutions reached 982,100.
* Digital cable households increased by 69,600 in the quarter to reach a total of 1,203,600, while residential high-speed Internet subscribers grew by 42,100 in the quarter to a total of 1,338,700.
* Wireless launched the Rogers VISION suite of services on its new High Speed Downlink Packet Access (HSDPA) 3G wireless network, "the fastest wireless network in Canada, and will be for some time," said CEO Rogers, including the first wireless video calling service in North America. This powerful 3G technology significantly improves data download speeds on wireless devices, providing a user experience similar to broadband hi-speed wireline services.
* Wireless announced that it would turn down its earlier generation TDMA and analog networks effective May 31, 2007 and move the remaining customers on these networks onto its advanced GSM network. The program has been successful to date, with the majority of subscribers already having chosen to transition to Rogers’ more advanced GSM service.
* Repaid $450 million aggregate principal amount of Cable and Telecom’s 7.60% Senior Secured Second Priority Notes due 2007 at maturity during the quarter and issued a notice to redeem all of Wireless’ US$550 million principal amount of Floating Rate Senior Secured Notes due 2010 on May 3, 2007 at the stipulated redemption price of 102% plus accrued interest to the date of redemption.
* Achieved investment grade credit status following the upgrade of Rogers’ corporate debt ratings by credit rating agencies Fitch and Moody’s during the quarter, followed by a similar upgrade to investment grade by Standard & Poor’s in April 2007.
* On April 9, 2007, Media announced its plans to acquire ten Canadian conventional and specialty television services from CTVglobemedia Inc., subject to various regulatory approvals, in an all cash transaction valued at $138 million. Media also closed its previously announced acquisition of five Alberta radio stations during the quarter.
"This was another solid quarter across the board for Rogers and a strong start to 2007 both operationally and financially," added Rogers. "While many challenges lie ahead in the coming quarters, we are well on track to deliver another year of strong growth in both revenues and operating profit. Our focus as 2007 unfolds remains disciplined execution of our strategy of profitable growth while continuing to deploy innovative products and services to add value to our customers’ lives."
