Rogers’ earnings dips from mobile and cable headwinds

Tough competition in the mobile and cable TV sectors has the media company feeling the heat, judging by its first quarter financial results.
Rogers revenue

Rogers Communications is feeling the heat of tough mobile phone and cable TV competition, judging by its first quarter results.

The Toronto-based company posted earnings for the three months to March 31 at $305 million, down 10% from $335 million in the same quarter of 2011.

Total revenue came to $2.95 billion, down from a year-earlier $2.99 billion.

Rogers’ cable TV revenue was flat at $468 million during the latest quarter, even as it lost 7,000 cable TV customers in the face of stiff competition from Bell Canada and its internet-based Bell Fibe TV offering.

Rogers was able to maintain its revenue line due to pricing changes introduced in March 2012, and increased penetration of its digital cable product offerings.

The media division saw its revenue line increase 4% to $354 million, due in part to higher subscriber fees from the Sportsnet sports specialty channel.

From PlayBack Daily