Rogers’ Q1 driven by digital cable, smartphone adoption
Driven by increased business in both its cable and wireless operations, Rogers reported a big increase in net income in its fiscal first quarter.
The company said additions of television, Internet and telephony subscribers at Rogers Cable all improved from the prior year. Bundling remains a winning strategy, with Internet subscriber penetration at 71 percent of television subscribers, digital penetration at 74 percent of television households and residential VoIP penetration at 42 percent of television subscribers.
Rogers On Demand Online – Rogers’ version of the TV Everywhere concept – is now experiencing in excess of 2 million page views per month and has almost 100,000 registered users, the company said.
Wireless network revenue growth was fueled by data revenue growth of 40 percent and postpaid net subscriber additions of 47,000. That data revenue growth was pushed by the popularity of smartphones, Rogers said.
Net income was $380 million, compared with the first quarter a year ago when the company reported a profit of $309 million.
"Our first-quarter results reflect continued top-line growth combined with good traction on cost controls. We delivered double-digit adjusted operating profit growth, margin expansion at all three segments and a 27 percent increase in free cash flow," said Nadir Mohamed, Rogers Communications’ president and CEO. "Our focus on wireless data and attracting and retaining higher-value customers continues to pay dividends, while the improved results in our media division reflect the actions we took in 2009 to improve our ratings and cost structure. Across the board we are off to a solid start in 2010."