Rogers 2015 Q1 Sees Profits Drop 17%, Loses 63,000 Wireless Customers

Rogers today announced their first quarter earnings for their 2015 fiscal year, which saw a 17% decline in profits to $255 million, compared to $307 million in the year ago quarter.

Wireless revenue did see an increase of 4% to $1.79 billion, while blended average revenue per user (ARPU) increased $1.12 to $58.75, which the company says was a result of increased network revenue and wireless data usage.

Beginning this quarter, Rogers says it will start calculating average revenue per account (ARPA), which is calculated by dividing total wireless postpaid network revenue (monthly) by the average number of wireless postpaid accounts for the same period.

While the company activated 700,000 wireless smartphones in the quarter, with 32% of them being new subscribers (and 83% of these customers being ‘higher-value’ postpaid customers).

rogers logo new

Rogers saw 63,000 wireless users leave the company (26,000 net postpaid; 37,000 prepaid) for rival services, which the company partly blamed on the CRTC’s ruling which allows customers to cancel without giving 30 days notice. Similarly, the shortening of contracts to two years caused operating expenses to increase 32%, as the company worked harder to reduce its churn rate.

“We continued to see steady revenue growth this quarter along with strong growth in Wireless ARPA,” said Guy Laurence, President and Chief Executive Officer of Rogers. “We made planned strategic investments to retain high-value customers ahead of the conclusion of the industry-wide shift to two-year contracts this summer – our underlying adjusted operating profit growth was otherwise solid. At the same time, we moved full steam ahead with our Rogers 3.0 program by delivering a number of initiatives that are popular with our customers. Our plan is gaining traction and we expect continued improvements in our key financial and operating results as the year progresses.”

Rogers now has 9,479,000 wireless subscribers in Canada. The company will hold its annual shareholder meeting tomorrow in Toronto.

Founder and Editor-in-Chief of iPhoneinCanada.ca. Follow me on Twitter, and @iPhoneinCanada, and on Google+.

  • Dean-Dina Lubaki

    But the question is, where did these people go? Bell, TELUS or Videotron/Wind/Mobilicity?

  • I’m about to drop them myself. Gonna feel pretty good when I do that.

  • Looks like TELUS and Bell for the most part? They seem to be the ones gaining subscribers compared to Rogers.

  • DoctorT

    It feels great when you do – I deff recommend it.

  • Ryne

    Not sure what to do. I am currently near the end of my 3 yr contract with Rogers. I pay $85.00 for 200 weekday mins, MY5, 6 GB data, unlimited text. My cell is a secondary phone. Am I paying too much? If I leave I will never get a deal for 6 GB of data. Would like to stay with one of the big 3.

  • How much data do you use per month? If you’re not using close to 6GB, the new Fido $45/1GB with unlimited Canada wide might be an option. If you’re in SK/MB/QC you’ll get even better deals.

  • Tyler

    My wife and I each have the $60 6GB/200 Min plan. We both use around 5 GB each, so its def good for us. However, our 3 year contract is up this fall and I’m concerned they’re going to force us onto another plan or cancel our amazing 6GB plan. Has anyone heard any rumblings of what Rogers might be doing once all of their 3 yr contracts are up? We buy our phones unlocked. Even though I have a great plan, I despise Rogers with a passion.

  • Rob

    As long as you buy your phones unlocked and don’t do a hardware upgrade then your current plan keeps going as is. The plan does not expiry just the term.

  • deki

    i just checked fido web site and i dont see this plan…

  • Oh whoops, completely spaced out, meant Koodo, not Fido. Koodo introduced new plans yesterday.

    http://www.iphoneincanada.ca/carriers/telus/koodo-choose-happy/

  • SS

    Ever heard of pro-rated billing? You’re just too stupid and impatient to realize the bills are always a month ahead. They would had sent you a final bill showing a refund for the non-service period. Oh well, you’re just the typical customer/blogger.

  • wuju

    I switch over from Fido to Telus myself. Fido is under Rogers – same company really. Fido can’t give me better options. 5 years with them too.

  • Guest

    I was with Rogers for years, had a pretty good retention plan as well. Later on I worked for them as a sales associate in a store and we were early upgrading customers to 4S’s, They wouldn’t let me early upgrade, when i left to pursue school, they took away the employee discount(which was fine obviously) but also my retention discounts disappeared. They offered to put back all but $2 of of my discounts, they said they would put back all of it if I re-signed for another 3 years. I had a year left so when i the iPhone 5 came out I tried to early upgrade, they said no, so i switched.

  • mike

    Its coming back to Rogers now what they did to customers. Good people are leaving Rogers.

  • Sandrewb

    I dropped them in Feb. lol

  • Anon

    You will lose any discount credits on your plan. Expect a price bump a month after your contract ends.

  • Steve

    Did you contact Rogers billing? They did the exact same thing to me when I switch. I called them up, and they cancelled the bill. Took all of 5 mins to do.

  • Jason Reid

    Hey Steve, I did contact them many times. Many many times. This was a couple years ago. maybe they’ve cleaned up their act now.

  • SS

    Maybe you should too.

  • Jason Reid

    What is your problem?

  • SS

    go take a selfie or something… useless life!

  • IB6UB9

    I’m sorry you must be a disgruntled Rogers employee. I feel bad for you. Why don’t you do us all a favour and kill yourself prick! Obviously you have the useless life.

  • Jason Reid

    Hehe yup a Rogers employee for sure!!

  • SS

    u mad bro? and far from a Rogers emp.

  • SS

    u mad too bro? can’t stand the hate? Go back to listening to some crap by Hedley or whatever.. lol

  • Forbes Kennedy

    Our internet, cable, home phone, cell phone x 5 bill with Rogers was $530 month. To upgrade the oldest cell – was told had to join the “Share everything plan” for a further $120 month. — Last straw

    Called Rogers ombudsman’s office to complain tried to negotiate a more competitive rate, guy laughed at me. — Immediately started divesting my Rogers services.

    Cut the cord, got an antenna, dropped Rogers. – Great reception – all the major networks

    Went to a smaller internet provider, doubled my internet speed – less than half the price.

    Dropped Rogers home phone $50 month – for internet phone – same number – no noticeable difference in service – for $15 month

    Moved phones to Wind – saved more money.

    F-U Rogers

  • changiman

    Th

  • changiman

    You’ll still be with Robbers, because Fido is Rogers!

  • chuck

    when are u people going to stop being so dam stupid, rebel !

  • chuck

    ban together, tell rogers bell, etc, and especially the crtc [ that’s the communist radio tv control] to go to hell