Newspaper article The Canadian Press

Rogers Will Cut Costs and Improve Customer Service to Fight Competition: Rogers to Cut Costs and Improve Service: CEO

Newspaper article The Canadian Press

Rogers Will Cut Costs and Improve Customer Service to Fight Competition: Rogers to Cut Costs and Improve Service: CEO

Article excerpt

Rogers Communications Inc. will cut costs and improve customer service to deal with competition in the wireless and cable TV markets that has resulted in slower revenue growth, CEO Nadir Mohamed said Wednesday.

"I think the competitive intensity carries on and so there's clearly going to be pressure on the top line," Mohamed said of Rogers' revenues.

"But it's very straightforward -- in the short term we're addressing the cost side of the equation," he said after the company's annual meeting in Toronto.

Shares in Rogers (TSX:RCI.B) closed down almost six per cent Wednesday after the company reported disappointing first-quarter financial results. The stock was down $2.21 at $36.81 per share on the Toronto Stock Exchange.

The Toronto-based company's wireless division has faced tougher competition from players big and small, while its cable division is battling fellow industry giant Bell (TSX:BCE).

Mohamed said Rogers is working to allow customers to use their devices to get the information they need for self-service when they have problems.

"To me, the best way to drive out costs is to improve our service. Where we would like to get to is customers using their own device to actually get the information they want, or service their requirement," he said.

Mohamed added that Rogers, which maintained its financial guidance for 20120, will also look at trimming discretionary spending and supply costs, but did not mention any further job cuts.

Rogers laid off about 300 employees in March, with the cuts focused on management and head office positions.

Mohamed assured analysts Tuesday that the company intends to improve its earnings before the end of the year and repeated the message to shareholders Wednesday.

"As I look to the balance of the year, I expect this competitive intensity to continue, and with moderating revenue growth. …

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