Rogers Q4 2014: iPhone Activations Up 19% Compared to Last Year
Rogers has reported a revenue of $3.3 billion for the fourth fiscal quarter of 2014, up 4% when compared to the same period the previous year, reflecting a revenue growth of 3% in wireless and 20% in media.
Rogers, Canada’s biggest wireless player, today announced its fourth quarter earnings – and the results have astounded analysts. The average monthly bills generated higher bills from the carrier, and, correspondingly, higher ARPU, which, as of Q4 2014, stands at $67.43. By comparison, the ARPU was $66.34 in Q4 2013.
“We saw a healthy acceleration in revenue growth and adjusted operating profit along with improvement in Wireless revenue and ARPU,” said Guy Laurence, President and CEO of Rogers Communications Inc. “We continued our shift from volume to value this quarter, and as expected we saw vibrations in both our Wireless and Cable subscriber metrics as we made certain commercial policy changes, consistent with our longer-term strategic goals. We remain committed to the strategy of providing our customers with added value while making the necessary adjustments to remain competitive in the market,” added Laurence, “Rogers 3.0 is now up and running and we delivered a number of key commercial propositions in the quarter. For the full year, we delivered on our financial guidance and entered 2015 with a 5% dividend increase which reflects our financial strength and confidence in the future.”
Interestingly, this ARPU comes from a smaller number of post-paid customers, as the total is 8.073 million in comparison to 8.074 million reported a year ago. The same goes for prepaid customers as well: despite losing subscribers, the carrier was able to increase its average user revenue from $58.59 to $59.86.
Rogers activated around 836,000 smartphones to new and existing subscribers, up from 790,000 compared to the same period last year. Smartphone owners now account for 84% of the total post-paid subscriber base, which is comparable to the 75% reported for Q4 2013.
Data revenue is also up 8% because of the continued smartphone and tablet penetration. As of this quarter data represents 52% of the total network revenue, up 3% compared to around 49% in the same period last year.
The iPhone 6 and 6 Plus launch was successful in Canada as well, bringing a welcome benefit to the carrier, According to the press release, Rogers activated 19% more iPhones in comparison to the sales period of last year.