TORONTO – A 45% increase in wireless data revenue helped power Rogers to a “very solid quarter of results”, the company announced Wednesday.
Data revenue now accounts for 24% of total wireless revenue, compared to 18% in the corresponding period of 2008. Rogers said that it activated an additional 400,000 smart phones during its fourth quarter, predominately Blackberry, iPhone and Android devices, of which approximately 40% were for subscribers new to Wireless.
Subscribers with smart phones now represent 31% of the overall postpaid subscriber base, up from 19% from the same quarter last year, and generate ARPU nearly twice that of voice only subscribers. The growth in subscribers and data revenues was partially offset by on-going economic and competitive pressures on roaming, long-distance and other usage-based revenue items.
At the end of the fourth quarter, Rogers had just under 8.5 million subscribers to its wireless services. ARPU from both pre-paid and post-paid wireless accounts dipped to $63.23 from $63.79 last year.
Growth in its cable division, which includes both Internet and digital cable services, has begun to slow, despite the launch of several new products. Rogers blamed negative economic and employment trends in Ontario where 90% of its market is concentrated, plus increasing levels of product maturity as contributing to slowing subscriber growth.
Rogers ended the year with 2.29 million basic cable customers, 1.66 million digital cable customers, and 1.62 million high speed Internet customers.
In the media division, Rogers said that operating profits were flat at $30 million compared with the same period last year, as advertising sales began to show small signs of growth.
"Against a tough economic backdrop, we delivered solid financial and operating results during the fourth quarter," said president and CEO Nadir Mohamed, in a statement. "Importantly, the results show a healthy balance of growth, cost control, improved churn and a double-digit increase in cash flow generation."
For 2009, Rogers reported overall operating revenues grew 3% from 2008 to $11.34 billion while operating profits rose 6% to $4.01 billion. For the fourth quarter, operating revenues were 4% higher than the same quarter a year ago reaching $3.06 billion, while operating profit rose 16% to $1.05 billion.
Looking ahead, Rogers predicts that wireless revenue will increase 3 to 6%, and adjusted profit to climb by 2 to 6% in 2010. On a consolidated basis, for its wireless, cable and media operations, Rogers sees adjusted profit growing 2 to 7%.
Rogers also renewed its stock buyback program for 2010, meaning that it can purchase on the TSX up to 43.6 million Class B shares, (approximately 9.08% of the issued and outstanding Class B shares), for an aggregate purchase price of $1.5 billion over the next 12 months.
