Rogers’ operating profit climbs 6% in Q4

30 Jan 2015

Canadian quadruple-play group Rogers Communications has reported that consolidated revenue rose by 4% year-on-year to CAD3.37 billion (USD2.68 billion) in the fourth quarter of 2014, while posting a 6% increase in quarterly consolidated adjusted operating profit (EBIT) to CAD1.233 billion reflecting EBIT increases in three divisions: Wireless (4%), Business Solutions (17%) and Media (59%), partially offset by a decrease in EBIT at Rogers’ Cable division of 2%. Net income was CAD297 million in the three months to 31 December 2014, compared with CAD320 million a year earlier.

Rogers achieved its overall sales increase despite losing a net 58,000 post-paid wireless subscribers, 36,000 cable subscribers, 18,000 fixed telephony subscribers and 4,000 broadband customers in the quarter. It explained that it managed this by steering away from cheap promotions whilst launching streaming TV, sports TV content and wireless roaming initiatives, spurring customers to buy more services, increasing the average revenue per user (ARPU). Blended monthly mobile ARPU reached CAD59.86 in 4Q14, up from CAD58.59 a year earlier. Rogers activated and upgraded 836,000 smartphones (of which 28% were new subscribers) in the quarter, compared to approximately 790,000 in the same period of 2013; the percentage of subscribers with smartphones reached 84% of Rogers’ total post-paid wireless subscriber base, compared to 75% a year earlier. Mobile data revenue increased by 8% in 4Q14 primarily because of the penetration and growing use of smartphones, tablet devices and wireless laptops, boosting the use of e-mail, Internet access, social media, mobile video, text messaging and other wireless data services. Data revenue represented approximately 52% of total mobile network revenue in the quarter, compared to approximately 49% in the same period of 2013.

Canada,Rogers Communications,


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