Rogers Communications Inc. today announced its consolidated financial and operating results for the company’s fiscal third quarter ended September 30, 2011.
For the July to September quarter, Rogers reported overall operating revenues of $3.15 billion, up 1% from the same period a year earlier. Adjusted operating profits were $1.22 billion, virtually unchanged from the third quarter of 2010.
Year-to-date, Revenues were up 3% and 1% to $9.0 billion and $3.57 billion respectively.
The wireless division, which constitutes close to 60% of Rogers revenues saw network revenue grow by 1% to $1.72 billion in the third quarter while operating profit fell 1% to $815 million.
The increase in wireless revenue was driven predominantly by the continued adoption of wireless data services. For the three and nine months ended September 30, 2011, data revenue represented approximately 36% and 35%, respectively, of total network revenue, compared to approximately 28% and 27%in the corresponding periods of 2010.
The company reported it had activated or upgraded 609,000 smartphone devices, compared to approximately 529,000 smartphones in the third quarter of 2010. These smartphones were predominantly iPhone, BlackBerry and Android devices, of which approximately 42% were new Rogers wireless subscribers new to Wireless. Subscribers with smartphones now represent 52% of the overall postpaid subscriber base as at September 30, 2011, compared to 37% as at September 30, 2010.
Year-over-year postpaid ARPU decreased by 3%, which reflects declines in most categories of wireless voice revenues, offset by higher wireless data and feature revenues. The 14% decrease in the wireless voice component of postpaid ARPU is primarily due to increased competition in the wireless voice services market, which was largely offset by a 24% increase in wireless data ARPU.
Cable operations, which includes Rogers Business Solutions and Rogers retail and accounts for about 30% Rogers revenues, posted revenue growth of 4% to $826 million in the third quarter due primarily to price increases. Operating profits were flat at $367 million.
Of the 3.7 million homes passed by Rogers, 2.3 million have basic cable service. The digital cable subscriber base grew by 3% and represented 77% of the television subscriber base as at September 30, 2011, compared to 74% as at September 30, 2010. See subscriber stats at the end of the article for more info.
Revenues at the declining Rogers Video continue to plummet. Revenues for the quarter were $18 million, down 45% from $33 million. The division which now makes up less than 2% of Rogers Cable revenues had an operating loss of $9 million and has lost $27 million year to date.
At Rogers Media operations, which account for more than 10% of overall revenues, third quarter operating revenues were up 10% to $407 million from a year earlier while operating profits climbed 7% to $329 million.
The following are Rogers’s cable, internet and telephony subscriber counts as of September 30, 2011. (Numbers in parentheses were previously reported subscriber counts for Dec 31st, 2010).
- Wireless PostPaid - 7,532,000 (6,979,000)
- Wireless PrePaid - 1,756,000 (1,515,000)
- Total Wireless - 9,288,000 (8,494,000)
- Homes Passed - 3,740,000 (3,708,000)
- Basic cable - 2,303,000 (2,305,000)
- Digital Cable - 1,767,000 (1,733,000)
- High Speed Internet - 1,768,000 (1,686,000)
- Digital phone lines - 1,044,000 (1,003,000)
- Circuit-switched subscriber lines - 1,000 (46,000)
- Total Landline phones - 1,045,000 (1,049,000)
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