Newspaper article The Canadian Press

Rogers Communications Posts Lower Q2 Net Earnings on Flat Revenues

Newspaper article The Canadian Press

Rogers Communications Posts Lower Q2 Net Earnings on Flat Revenues

Article excerpt

Big teleco Rogers has lower Q2 net earnings

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TORONTO - Rogers Communications Inc. (TSX:RCI.B) reported Thursday a lower second-quarter profit but beat analyst expectations as it focused on improving its operations.

The cable and wireless company earned $405 million on flat year-over-year revenue of $3.2 billion, but showed signs of strength in its wireless operations.

"It's obviously still very early days, but there's tremendous amount of work going on behind the scenes, setting the stage and we're making progress putting in place a new team and structure as well as cascading that structure and accountability down the whole organization," chief executive Guy Laurence said in a conference call with analysts Thursday.

"I'm confident that you will see us moving in the right direction over the coming quarters."

The quarterly profit amounted to 76 cents per diluted share, down 24 per cent from $532 million, or 93 cents, in the same quarter of 2013.

Excluding one-time, the company earned $432 million, or 84 cents for the three months ended June 30, versus $497 million, or 96 cents, in the same quarter last year.

Analysts on average had expected adjusted net income of 84 cents, according to data compiled by Thomson Reuters.

Wireless revenue at Rogers slipped in the quarter to $1.8 billion, down from $1.81 billion a year ago.

However, the company said that excluding a decline in roaming revenue due to the new cellphone roaming plans introduced during the past year, wireless network revenue would have been two per cent higher than in the second quarter of 2013.

Net additions of post-paid wireless customers, those generally on smartphone contracts, totalled 38,000, down from 98,000 in the same quarter last year, while Rogers lost 31,000 pre-paid customers compared with a loss of 56,000 a year ago.

The monthly average revenue per post-paid user for the quarter was $66.40, down from $67.36 a year ago, while the average pre-paid user revenue was $15. …

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