TORONTO – An influx of new wireless customers helped to power first quarter profits and revenues at Rogers Communications, the company announced late Tuesday.
For the period ended March 31, 2017, net income of $294 million jumped 28% from $230 million in the same period last year, while adjusted net income increased 34% from $245 million to $329 million as a result of higher Wireless and Media adjusted operating profit, along with lower depreciation and amortization.
Consolidated revenue increased 3% this quarter to $3.34 billion, largely driven by Wireless service revenue growth of 7%. Wireless service revenue increased primarily as a result of a larger subscriber base and the continued adoption of higher-value Share Everything plans. Cable revenue was stable this quarter, as declines in Television and Phone revenue were offset by strong Internet revenue growth of 8%. Media revenue increased 6% primarily due to higher sports-related revenue, including a distribution to the Toronto Blue Jays from Major League Baseball and higher Sportsnet subscription revenue.
Free cash flow of $338 million grew 54% from $220 million last year, primarily driven by increased adjusted operating profit and lower additions to property, plant and equipment, partially offset by higher cash income taxes.
Rogers said that its Wireless service revenue growth of 7% was the highest since 2010 and that postpaid net additions of 60,000, which were 46,000 more than the same period last year, were the highest of any first quarter since 2009, despite 42,000 net prepaid subscriber losses.
The company ended the quarter with 8.62 million wireless postpaid customers and 1.66 million prepaid customers. On the TV side, Rogers lost 24,000 cable customers to fall to 1.80 million; added 30,000 Internet customers to sit at 2.18 million broadband subs; and added 2,000 home phone customers and now has 1.10 million of those households.
“We are pleased to report strong growth in revenue, adjusted operating profit, and free cash flow this quarter, underpinned by impressive subscriber metrics," said interim president and CEO Alan Horn, in a statement. "We delivered on all Wireless fundamentals, including a substantial reduction in postpaid churn, as we pursue an ever-improving experience for our customers. We see strong uptake of our Ignite Internet offerings and continue to expect positive trends as we leverage our Cable competitive advantage. Our results are an excellent start to 2017.”
Click here for more on Rogers’ first quarter financial results.
