Rogers posted its financial results for the first quarter of 2025 today, with net income rising 9% year-over-year to $280 million. Total revenue grew 2% to $4.98 billion, driven by service revenue gains in wireless and media.
The company added 34,000 mobile phone subscribers, including 11,000 postpaid and 23,000 prepaid net additions. Prepaid performance rebounded after losses last year, while postpaid additions slowed. The postpaid subscribers were below analysts’ expectations, as those at Visible Alpha expected around 17,390 subscribers.
Blended average revenue per user (ARPU) dropped to $56.94 from $58.06 a year earlier, down $1.12. Rogers blamed the decline to bundling trends and competition in a slowing economy. Rogers also said lower immigration and fewer travellers to the U.S. hurt its Q1 earnings.
Despite the ARPU drop, wireless service revenue rose 2% to $2.03 billion. Wireless adjusted EBITDA also climbed 2% to $1.31 billion, with the EBITDA margin improving slightly to 64.7%. During Q1, Rogers (and Fido) increased its connection fee to $75.
Rogers added 23,000 retail internet subscribers. However, average revenue per account (ARPA) for its cable division dipped to $136.97 from $140.10, due to what it says is ongoing promo activity and a shrinking base in home phone and video services.
The media division saw revenue jumping 24% to $596 million. Growth was fuelled by sports-related gains at the Toronto Blue Jays and new revenue from Warner Bros. Discovery channels. Adjusted EBITDA losses narrowed from $103 million to $67 million.
Rogers also declared a quarterly dividend of 50 cents per share, to be paid on July 3, 2025 to shareholders as of June 9, 2025.
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