Rogers Communications Inc. has revealed its financial report for the first quarter, showing a profit of $256 million. However, this figure marks a decline from the $511 million reported during the same period last year. The decrease is attributed to higher expenses linked to the acquisition of Shaw Communications and ongoing restructuring efforts within the company.
Earnings per share for this quarter amounted to 46 cents on a diluted basis, down from $1.00 per diluted share in the previous year's quarter. Despite this decline, revenue saw a notable increase, reaching $4.90 billion compared to $3.84 billion in the prior year. Growth in both cable and wireless sectors contributed to this rise.
Wireless revenue for Rogers totaled $2.53 billion, up from $2.35 billion the previous year. Similarly, cable revenue surged to $1.96 billion from $1.02 billion, primarily due to the acquisition of Shaw. However, media revenue experienced a slight dip, falling to $479 million from $505 million in the same quarter last year.
On an adjusted basis, Rogers reported earnings of 99 cents per diluted share for the latest quarter, down from $1.09 per diluted share in the corresponding quarter of the previous year.
Tony Staffieri, the CEO of Rogers, expressed satisfaction with the company's performance, citing continued growth and momentum in the first quarter. He emphasized their leading position in the industry, particularly following the one-year milestone of the Shaw merger. Staffieri also noted that Rogers had exceeded its synergy targets ahead of schedule, aiming to achieve approximately $1 billion in savings stemming from the merger.
Despite these positive developments, Rogers witnessed a slight increase in monthly churn for net postpaid mobile phone subscribers, rising to 1.1 percent from 0.79 percent in the previous first quarter. However, the company saw a rise in mobile phone average monthly revenue per user (ARPU), reaching $58.06 compared to $57.26 in the first quarter of the previous year.
Rogers attributed the increase in mobile phone ARPU primarily to changes in its subscriber base. The company remains optimistic about its future prospects, banking on its continued growth trajectory and the synergies derived from the Shaw merger.
The financial report underscores Rogers' resilience in navigating challenges while capitalizing on opportunities for expansion and consolidation within the telecommunications sector.
