Article Tools
TORONTO - Rogers Communications Inc. (TSX:RCI.B) reported a surprisingly strong third-quarter Tuesday as the popularity of smartphones boosted revenue and profit at the company's wireless division, offsetting declines at the media sector.
Overall revenue at the cable, Internet, wireless and media company edged up two per cent to $3.03 billion, in line with analyst estimates, compared with $2.98 billion last year but Rogers reported profit that far exceeded expectations.
The Toronto-based company said its net income was $485 million or 79 cents a share for the quarter ended Sept. 30, compared to year-earlier earnings of $495 million or 78 cents a share.
"Our third quarter results represent a healthy balance of growth, cost control and margin expansion, and double-digit increases in cash flow generation and cash returns to shareholders," Nadir Mohamed, Rogers president and chief executive officer, said in a conference call with analysts.
After adjustments, the company's net income totalled $505 million or 82 cents a share, up from 73 cents a year earlier.
Analysts had expected adjusted profits of 54 cents per share.
Overall operating profit was up six per cent to $1.15 billion, from $1.08 billion a year ago.
The wireless division accounted for $846 million of adjusted operating profit, up 22 per cent from $693 million a year ago.
Mohamed said the most significant driver for good news on the wireless side was record high growth in wireless data revenues from smartphones like the Apple iPhone and BlackBerry products from Research in Motion (TSX:RIM). Data represented about 23 per cent of total wireless revenue.
"This represents the strong success of the smartphone investments we've made," Mohamed said.
The company did, however, see a drop in its roaming and out-of-pocket services which it attributed to a weak economy and higher unemployment rates.
There were also fewer hardware upgrades to the amount of Apple's iPhones purchased which led to slower wireless equipment sales for the quarter.
Rate this article
