Rogers Q3 2016: Net Income Falls 53% YoY; Wireless Adds 114,000 Net Subscribers

Rogers has had a decent third quarter, according to the earnings report Canada’s #1 carrier released today: $3.49 billion in revenue, which compares to the $3.38 billion from a year ago, but net income, at $220 million, was down from the $464 million reported for Q3 2015. The quarterly earnings report was “crowned” by the news that Guy Laurence is leaving Rogers, which makes the third quarter Laurence’s last financial quarter as the leader of the carrier.

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Net income decreased this quarter as a result of higher investment-related expenses, primarily as a result of our wind down of shomi, partially offset by higher adjusted operating profit. Adjusted net income decreased this quarter as a result of higher other investment-related gains incurred in the prior year.

During the three months ending September 30, 2016, Rogers’ wireless service revenue increased 6% to $1.78 billion year-over-year and 5% year-to-date, due to larger postpaid and prepaid customer bases and the continued adoption of Share Everything plans. Equipment revenue was down 19% to $157 million, but the two together push total wireless revenue to $2.03 billion for the third quarter of this year, up 3% compared to same period last year.

Rogers has added 114,000 net postpaid subscribers, up 37,000 year-over-year, or almost 50%. Blended ARPU (average revenue per user) increased $1.28 to $62.30, compared to $61.02 reported for Q3 2015.

As of the end of this financial quarter, Rogers has 8,464 million total postpaid subscribers and 1,679 million prepaid wireless subscribers, which makes a total of 10,143,000 wireless customers.

According to Rogers, the third quarter was its best quarter since 2010, as it reported its highest revenue growth and postpaid net additions since that year.