Canada's Rogers Communications Closes Remaining Video Stores
The move came as the country's largest mobile and cable player disappointed with first quarter results in an increasingly competitive marketplace.
TORONTO - Rogers Communications has closed its remaining video stores nationwide, eliminating around 300 jobs.
That’s the latest sign Canada’s biggest mobile and cable giant faces increasingly cutthroat competition in the domestic wireless and cable TV sectors.
On Tuesday, Toronto-based Rogers disappointed as it delivered first quarter earnings of $305 million, down 10 percent from $335 million in 2011 on overall revenue of $2.95 billion, just down from a year-earlier $2.99 billion.
The Canadian wireless giant signed up more iPhone customers during the latest quarter, but saw subscribers opt for cheaper data plans.
That has Rogers scrambling for market share in the Canadian mobile phone market by subsidizing new devices, a move that's handcuffing other incumbent players like Shaw Communications and BCE looking to fend off new market entrants.
"We are seeing a softer rate of topline growth than we would have liked and that's a reflection of the continued intense wireless competition and a further slowing in the rate of growth in wireless data," Rogers Communications CEO Nadir Mohamed told financial analysts during a conference call.
And on the cable front, Rogers lost around 7,000 subscribers during the latest three months to March 31 as it faced increased competition from Internet protocol TV offerings, including Bell Fibe TV from rival phone giant Bell Canada.