Rogers reported its financial and operating results for Q2 2024, showing growth in wireless and internet services.
The company saw 188,000 combined mobile phone and internet net additions in Q2, bringing the year-to-date total to 275,000.
Specifically, there were 112,000 postpaid mobile phone net additions, 50,000 prepaid net additions, and 26,000 retail internet net additions. Over the past 10 quarters, Rogers says it added 1.7 million mobile phone and internet net additions. The total postpaid mobile phone subscribers now stand at 10.6 million.
Rogers reported a 4% increase in wireless service revenue and a 6% rise in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), with a margin of 65%. Blended ARPU increased by 1%. Cable revenue decreased by 2%, while adjusted EBITDA increased by 9%, resulting in a margin of 57%.
Speaking on the company’s second-quarter earnings call today, Rogers president and CEO Tony Staffieri acknowledged the higher churn levels, or rates at which customers cancel service, reports BNN Bloomberg.
“Long term, as we look out beyond the next three to four quarters, our expectation is we will see churn levels likely decline, but we think it’ll be some time before we enter that space,” he said. The monthly churn for net postpaid mobile subscribers was 1.07 percent in the most recent quarter, up from 0.87 percent year-over-year.
Staffieri said the higher churn rates come “against the backdrop of a continuing growing market,” with gross additions up across the telecom sector. Rogers wireless has seen improved customer loyalty, compared to flanker brands Fido and Chatr, where churn has been higher.
“The overall combined churn, most of that is happening in the flanker category, quite frankly,” Staffieri said. “What we are seeing is customers moving around in that space as they are more price conscious.”
With ongoing price changes to bring your own device plans from Fido, Koodo and Virgin Plus, it’s easy to see how customers keep jumping to the best plan. Freedom Mobile’s aggressive Canada-US offerings likely played a part as well.
Rogers’ mobile phone average monthly revenue per user rose to $57.24, a slight 0.79% increase from $56.79 year-over-year.
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