Rogers profits up, despite new competition
Canadian cable and wireless phone giant sees Q2 earnings up 13%TORONTO -- Canadian cable and wireless phone giant Rogers Communications continues to churn out profits, even as competition from new market entrants mounts.
Toronto-based Rogers on Tuesday saw second quarter earnings rise 13% to $464 million, against a profit of $374 million in 2009, as overall revenue climbed 5% to $3.02 billion, against a year-earlier $2.89 billion.
Wireless revenue was up 5% to $1.7 billion, while cable revenue rose 4% to $790 million.
The media giant pointed to continued revenue and subscriber growth "from efficiency gains" across wireless, cable and Internet businesses.
At the same time, Rogers signed up 119,000 new wireless phone customers during the latest financial quarter, against 142,000 in the year-earlier period, as sector competition heats up.
To fend off new market entrants, Rogers recently introduced a discount prepaid wireless brand, Chatr, with unlimited talk and text offerings.
Rogers also sliced bandwidth caps on cable broadband services for new customers to deal with the upcoming entry of Netflix into the Canadian online movie rental market.