Rogers Q2 2015: Profits Down 10% Compared to Last Year
Rogers today reported a net income of $363 million for the second quarter of 2015.This constitutes a 10% drop compared to the same period a year ago, when the carrier recorded $405 million.
In a press release issued today, Rogers once again highlighted the steps it has made to maintain its leadership in the wireless sector: it acquired Mobilicity and Shaw’s AWS-1 spectrum licences, and added 20MHz of contiguous AWS-1 spectrum adjacent to our existing 20MHz of AWS-1 holdings across British Columbia and Alberta, and, this July, added 10MHz of contiguousAWS-1 spectrum across Southern Ontario.
“We grew both the top and adjusted operating profit lines in the quarter while showing improvement in our Wireless and Internet subscriber metrics,” said Guy Laurence, President and Chief Executive Officer of Rogers Communications Inc. “In addition, we completed a series of strategic transactions to further enhance our spectrum position, delivered a successful first year of our exclusive national NHL rights agreement, and continued to implement key customer experience improvements. Our Rogers 3.0 plan continues to gain traction, our financials are trending in the right direction, and we’re entering the back half of the year with key regulatory decisions behind us.”
Due to the continued adoption of Rogers Share Everything plans, network revenue for the past three months was up 2% to $1.7 billion. Equipment sales generated 196 million in revenue, meaning the total wireless revenue for the quarter was $1.9 billion, up 6% from the $1.8 billion reported over the same period last year.
As of the end of June, Rogers has a total of 8.16 million postpaid subscribers, up from 8.11 a year ago, and 1.3 million prepaid subscribers. Rogers claims the total net postpaid subscriber additions was 24,000, along with 8,000 prepaid.
The carrier activated and upgraded about 682,000 smartphones for new and existing customers, up 16% compared to 588,000 in the same period the previous year. The percentage of smartphone users was 83% in the network, which has obviously generated higher ARPU. Therefore the average revenue per user is up 1% to $67.24, compared to $66.40 reported last June.