Rogers beats estimates on smartphone activations
The gain comes despite a lower profit line and competitive pressures from Wind Mobile, Mobilicity and other new market entrants.
Despite a lower profit line, Rogers Communications beat earnings estimates on higher smartphone activations.
Rogers, which secures the bulk of its revenue and earnings from wireless phones, posted first quarter earnings of $335 million, against a profit of $368 million in 2010.
Stripping out one-time charges, Rogers saw its adjusted profit come to 76 cents per share, exceeding Bay Street estimates.
Overall revenue was up 4% to $2.98 billion.
Rogers saw its media revenue from broadcast and print rise 17% to $339 million, on the strength of a recovering ad market.
At the same time, operating costs for Rogers’ media arm – due in part to expensive NBA and NFL programming rights – jumped by 22% to $349 million, producing an operating loss for the division.
Wireless data revenue remains Rogers’ biggest money-earner, however, as the media group continued to sign up smartphone customers during the latest quarter.
That gain came despite competitive pressures from Wind Mobile, Mobilicity and other new market entrants.
From Playback Daily