Rogers’ earnings off slightly in Q4
The company's wireless division continues to grow, but the fight for mobile customers takes a chunk out of profits.
Rogers Communications is feeling the competition pinch from new rivals, with fourth quarter earnings off modestly, despite higher revenue.
Rogers posted adjusted earnings of $359 million for the three months to December 31, down 3% from a year-earlier profit of $370 million, on overall revenue up 3% to $3.15 billion.
Cable grew its TV, internet and cable telephony subscribers by 17,000 during the quarter. Cable revenue rose 2% to $809 million, and the media division, including TV stations, rose 9% to $428 million.
The wireless division continues to dominate Rogers’ earnings, with revenue up 3% to $1.78 billion.
But here Rogers faces a drop in margins, and heavy spending to retain mobile customers and convince them to upgrade to smartphones, due to new competition from market entrants like Mobilicity and Wind Mobile.
‘While the top line and subscriber growth rates moderated in the quarter from 2009, we held our expenditures in solid check enabling us to continue to invest at a healthy rate in customer retention, network enhancement and product development initiatives,’ Nadir Mohamed, president and CEO of Rogers Communications, said Wednesday.
Rogers faces the same headwinds that Shaw Communications does in western Canada, where incumbent players like BCE and Telus continue to claw back market share.
From Playback Daily