Rogers Q4 2016 Takes IPTV Hit, But Wireless Leads Profit Growth
Canada’s biggest carrier, Rogers, ended 2016 with a turbulent quarter: It posted a $9 million loss due to the $484 million charge of the discontinued IPTV product. The enormous write-down was counterbalanced by a strong growth in wireless revenue in the quarter, according to the numbers shared by the company.
Revenue increased by 2% in the quarter, largely driven by the wireless revenue growth of 6%, Rogers said in a press release. The increase in wireless service revenue was primarily the result of a larger subscriber base and the continued adoption of Share Everything plans, as well as the increase in data usage.
During the September–December period, Rogers added 93,000 new wireless postpaid subscribers, the most since 2009, and reported 4% growth in sales at the division, the company said.
After the departure of Guy Laurence, Alan Horn stepped in as interim president and CEO, but, as we previously reported, all eyes were on Rogers’ announcement, as it brings fresh info about the new CEO, Joseph Natale. But Natale will not be able to join Rogers until July 2017, when his non-compete agreement with Telus expires. Rogers certainly hoped to bring Natale on board earlier, and rumour has it there were some (apparently unsuccessful) negotiations between the two incumbents on this matter.