Rogers Communications Inc. today announced its consolidated financial and operating results for the company’s fiscal first quarter ended March 31, 2011.
For the January to March 2011 quarter, Rogers reported overall operating revenues of just under $3 billion, up 4 percent from the same period a year earlier. Net income for the quarter was $423 million, up 7 percent from $397 million in the first quarter of 2010.
"The first quarter results represent a healthy start to 2011 for Rogers," said Nadir Mohamed, President and Chief Executive Officer of Rogers Communications Inc.
The wireless division, which constitutes over 55 percent of Rogers revenues saw network revenue grow by 4 percent to $1.72 billion in the first quarter driven by the continued growth of Wireless' postpaid subscriber base and the continued adoption of wireless data services. Operating profit for the quarter, however, was down 3 percent to $789 million.
The increase in wireless revenue was driven predominantly by growth in the number of postpaid customers and the continued adoption of wireless data services. Data revenue increased by approximately 30% from the corresponding period of 2010, to $542 million.
The growth in data revenue comes thanks to the increased adoption of smartphone and wireless laptop devices which are driving increased usage of e-mail, wireless Internet access, text messaging and other wireless data services. Data revenues accounted for 34% of total network revenue, up from 26% in same quarter of 2010.
The company reported it had activated or upgraded 534,000 smartphone devices in the first quarter compared to approximately 384,000 smartphones a year earlier. These smartphones were predominately iPhone, BlackBerry and Android devices, of which approximately 36% were for subscribers new to Wireless. Subscribers with smartphones now account for 45% of the overall postpaid subscriber base, compared to 33% a year earlier.
Average monthly revenue per user or ARPU in the quarter was $70.18 for postpaid customers (down $1.44 from $71.62) and $14.32 (down 38 cents from $14.70) for prepaid customers. Blended ARPU was $59.91 down from $61.59 in the previous year.
Cable operations, which includes Rogers Business Solutions and Rogers retail and accounts for just under a third of Rogers revenues, posted revenue growth of 1% to $953 million in the first quarter thanks to modest increases in the number of digital cable, HDTV and High speed internet customers. Operating profits were up 16% to $392 million.
Of the 3.7 million homes passed by Rogers, 2.3 million have basic cable service. See subscriber stats at the end of the article.
At Rogers Media operations, which account for more than 10% of overall revenues, first quarter operating revenues were up 17% to $339 million from a year earlier, however, an operating profit of a million dollars in the first quarter of 2010 turned into a $15 million loss this year due to the high cost of acquiring sports programming for Rogers Sportsnet.
The following are Rogers’s cable, internet and telephony subscriber counts as of March 31, 2011. (Numbers in parentheses were previously reported subscriber counts for Dec 31st, 2010).
- 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 - 3,734,000 (3,708,000)
- Basic cable - 2,303,000 (2,305,000)
- Digital Cable - 1,743,000 (1,733,000)
- High Speed Internet - 1,698,000 (1,686,000)
- Digital phone lines - 1,014,000 (1,003,000)
- Circuit-switched subscriber lines - 28,000 (46,000)
- Total Landline phones - 1,042,000 (1,049,000)