Canada's Rogers Communications Sees Q2 Profit Dip on Stronger Competition
TORONTO – Hit by increased competition in wireless, Canadian cable and phone giant Rogers Communications on Tuesday reported lower second quarter earnings and flat overall revenue.
Toronto-based Rogers saw earnings for the three months to June 30 come in at $400 million, down 2.4 percent from a year-earlier profit of $410 million, on virtually unchanged revenue of $3.11 billion.
The wireless phone division, which posted revenue up 1 percent to $1.76 billion, added fewer postpaid subscribers during the latest quarter, compared to 2011 levels.
And the monthly bill for subscribers fell by $1.61 to $68.46 on lower voice revenue.
At the same time, margins for smartphone use beat analyst expectations.
"Our revenue and adjusted operating profit growth in the second quarter was highlighted by strong postpaid wireless smartphone sales and customer retention metrics, as well as exceptionally strong margins in both our wireless and cable businesses," Rogers Communications president and CEO Nadir Mohamed said in a release.
The cable TV division saw revenue rise 1 percent to $843 million, while the media division, comprising radio and TV channels, saw revenue in a soft ad market rise 1 percent to $440 million owing in part to higher subscriber fees for TV sport channels.