Rogers reports year end results
Rogers Communications Inc. this week announced its consolidated financial and operating results for the company’s financial and operating results for the three and twelve months ended December 31, 2010.
For the October to December 2010 quarter, Rogers reported its overall operating revenues and adjusted operating profits rose 3 percent from the same period a year earlier to $3.15 billion and $1.1 billion respectively. Net income for the quarter was up 5 percent to $327 million from $310 million in the fourth quarter of 2009.
For the all of 2010, operating revenue at Rogers Communications was up 4 percent to $12.2 billion, adjusted operating profits were up 5 percent to $4.6 billion while net income was up 3 percent to $1.5 billion when compared to 2009.
“While the top line and subscriber growth rates moderated in the quarter from 2009, we held our expenditures in solid check enabling us to continue to invest at a healthy rate in customer retention, network enhancement and product development initiatives,” said Nadir Mohamed, President and Chief Executive Officer of Rogers Communications Inc
The wireless division, which constitutes over half of Rogers revenues saw network revenue grow by 3 percent to $1.65 billion in the fourth quarter driven by by the continued growth of Wireless’ postpaid subscriber base and the continued adoption of wireless data services. Operating profit for the quarter was down 2 percent to $704 million. For the year revenues and operating were up 5 percent to $7 billion and $3 billion respectively.
For the three months ended December 31, 2010, wireless data revenue increased by approximately 32% from the corresponding period of 2009, to $506 million. Rogers says the growth in wireless data revenue reflects the continued penetration and growing usage of smartphone and wireless laptop devices which are driving the use of e-mail, wireless Internet access, text messaging and other wireless data services. For the three months ended December 31, 2010, data revenue represented approximately 31% of total network revenue compared to approximately 24% in the corresponding period of 2009.
The company reported it had activated or upgraded 635,000 smartphone devices compared to approximately 400,000 smartphones in the fourth quarter of 2009. These smartphones were predominately iPhone, BlackBerry and Android devices, of which approximately 29% were for subscribers new to Wireless, during the three months ended December 31, 2010. This resulted in subscribers with smartphones representing 41% of the overall postpaid subscriber base as at December 31, 2010, compared to 31% as at December 31, 2009.
Average monthly revenue per user or ARPU for the fourth quarter of the year was $71.81 for postpaid customers, down $1.61 from $73.42 in the fourth quarter of 2009 while ARPU for prepaid customers was $16.09 down twenty cents from $16.39 a year earlier.
The average wireless user talked on the phone for just under 8 hours (477 minutes) per month during the quarter down 25 minutes from a year earlier.
Cable operations, which includes Rogers Business Solutions and Rogers retail and accounts for about a third of Rogers revenues, posted revenue growth of 2% to $809 million in the fourth quarter thanks to modest increases in the number of digital cable, HDTV and High speed internet customers. Operating profits were up 10% to $377 million. For the year, operating revenue was up 4% to $3.2 billion while operating profits were up 7% to $1.4 billion.
Of the 3.7 million homes passed by Rogers, 2.3 million have basic cable service. Among those that have cable service, 75% have digital cable, 73% have internet and 44% have phone service with the company.
At Rogers Media operations, which account for about 10% of overall revenues, fourth quarter operating revenues were up 9% to $428 million from a year earlier, however, operating profits were down 10% to $27 million due to the costs of launching its Sportsnet One network. For the year, revenues were up 7% to $1.5 billion while operating profit was up 67% to $122 million.
The following are Rogers’s cable, internet and telephony subscriber counts as of December 31, 2010. (Numbers in parentheses were previously reported subscriber counts for Dec 31st, 2009).
- Wireless PostPaid – 7,325,000 (6,979,000)
- Wireless PrePaid – 1,652,000 (1,515,000)
- Total Wireless – 8,977,000 (8,494,000)
- Homes Passed – 3,708,000 (3,635,000)
- Basic cable – 2,305,000 (2,296,000)
- Digital Cable – 1,733,000 (1,664,000)
- High Speed Internet – 1,686,000 (1,619,000)
- Digital phone lines – 1,003,000 (937,000)
- Circuit-switched subscriber lines – 46,000 (124,000)
- Total Landline phones – 1,049,000 (1,061,000)
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