TORONTO – An influx of new wireless customers, the highest in the last eight years, helped to drive up third quarter profits at Rogers Communications by 112%, the company said Thursday.
For the period ended September 30, 2017, net income of $467 million was more than double the $220 million posted in the same period last year. Adjusted net income increased 22% from $427 million to $523 million, primarily due to higher adjusted operating profit and lower depreciation and amortization.
Revenue of $3.58 billion increased 3% this quarter from $3.49 billion year-over-year, largely driven by Wireless service growth of 7%. Wireless service revenue increased primarily as a result of subscriber growth and more higher-rate plans from the company’s various brands, including Rogers Share Everything plans. Cable revenue increased 1%, led by the continued Internet revenue growth of 6%. Media revenue fell 3% compared to the same period last year that featured the World Cup of Hockey, as well as lower publishing-related revenue due to the strategic shift to digital media announced late last year.
Free cash flow of $538 million was down 10% from $598 million last year, due to the timing of capital expenditures, continues the financial report.
“Our team delivered on all key operating and financial metrics in our largest segment, Wireless. We significantly grew subscribers, revenue, adjusted operating profit, and margins. We are pleased with our postpaid churn result," said president and CEO Joe Natale, in a statement. "In a highly competitive quarter, Cable financials were strong thanks to our Internet competitive speed advantage. We continue to focus our efforts to drive customer service and margin improvements."
Rogers said that its Wireless division reported 129,000 net additions, its highest postpaid net additions in eight years.
The company ended the quarter with 8.84 million wireless postpaid customers and 1.79 million prepaid customers, up 15,000 and 30,000, respectively from the same period last year. On the TV side, Rogers lost 18,000 cable customers to fall to 1.75 million; added 27,000 Internet customers to sit at 2.21 million broadband subs; and lost 4,000 home phone customers and now has 1.09 million of those households.
Rogers also boosted its forecast for 2017 adjusted operating profit growth to 5% – 6% from 2% – 4% to reflect the growth in its Wireless division. Its guidance for free cash flow and revenue remains unchanged.
