Rogers 2011 Q2: Profits Drop to $410 Million, But Revenues Rise

Rogers released their 2011 Q2 earnings, and noted a 9% drop in profits due to increased competition, but beat expectations as revenues rose.

Net income for Q2 was $410 million ($452 million in the year ago quarter), and revenue came in at $3.12 billion, a 3% increase from the year ago quarter.

“Rogers delivered a solid performance in the second quarter both for financial and subscriber results, delivering solid growth in a highly competitive environment,” said president and CEO Nadir Mohamed.

Here are some more notable numbers:

– 27,000 new prepaid subscribers
– 108,000 postpaid subscribers
– 9 million total wireless subscribers
– 591,000 new activations (smartphones account for more than 50% of all postpaid subscribers; this was 33% in the year ago quarter)
– Data revenue increased 7% from the year ago quarter, now 1/3 of total network revenue
– ARPU (average revenue per user) dipped to $60 (from $63) due to competition
– 48% of customers on contracts are using smartphones (35% in the year ago quarter)

Competition hurt long-distance and roaming wireless voice revenue, according to Rob Bruce, President of Rogers in a conference call. A major contributing factor is most likely due to the usage of free VoIP apps like Skype, Viber, and netTalk on smartphones, plus the increased usage of unlocked devices when traveling.

Rogers noted it will continue to roll out its new LTE network across the country, with Ottawa getting first dibs this summer followed by Toronto, Montreal, and Vancouver by the year’s end. Other top 25 markets will get LTE implemented by the end of 2012.