Rogers posts increased revenues, profits in Q3

Profits and revenues go up as losses on the media side were offset by growth in its wireless and cable businesses.

Rogers BundleRogers Communications has reported increased year-over-year profits and revenues for Q3, as growth in its wireless and cable businesses cancelled out revenue decreases on the media side.

Across all its businesses, revenue increased 3% to $3.58 billion for Q3, up from $3.49 billion last year, while overall profits rose to $1.46 billion, from $1.385 billion.

The rising revenues were spurred by a 7% increase in the company’s wireless business, due to subscriber growth and increased uptake on higher-rate plans across its various wireless brands. Cable revenues were up 1% to $870 million for the quarter due to internet revenue growth of 6% and the addition of 27,000 new subscribers.

Media revenues meanwhile decreased 3% to $516 million, which Rogers attributed to the fact the 2016 Hockey World Cup bolstered media revenues in Q3 of last year.

In terms of profit, Rogers posted increases 6% to $1.463 billion, from $1.385 last year, which the company attributed to a 9% growth in its wireless business. On the cable side, profits were up 2% due to “the ongoing product mix shift to higher-margin internet and various cost efficiencies.”

Meanwhile, media profits dropped 18% for the quarter due to higher Toronto Blue Jays player payroll and lower publishing-related revenue due to the strategic shift to digital media.

During a conference call following the release of the Q3 results, Rogers execs including president and CEO Joe Natale said Rogers is continuing to test its upcoming X1 IP-based video platform. The new product is an IPTV product designed to increase viewer engagement and provide a “personalized and immersive entertainment experience that enhances the way customers watch video and discover content.”

A group of 1,000 Rogers employees will begin using and testing the service in their homes next month, before the company soft launches it to a larger group of employees in Q1 of 2018. On the current timeline, Natale said a full product launch will be available to consumers in the later part of 2018.

Last year, Rogers scrapped its plans to build an in-house IPTV system in favour of partnering with Comcast to license U.S. cable company’s X1 IP-based video platform. The change in direction saw the company take a pre-tax non-cash asset impairment charge of between $475 million and $525 million (CAD) in Q4 of 2016.

Courtesy of Playback