Rogers 2012 Q3: 707K Smartphone Activations, iPhone 5 Increased Expenses
Rogers announced its 2012 Q3 financial results this morning, which generated a total operating revenue of $3.17 billion and an adjusted $495 million in net income.
Canada’s largest wireless carrier noted they activated 707,000 smartphones, with 36% of these being new customers. 76,000 net postpaid customers were added, and their ARPU (average revenue per user) metric was at $71.50 (down $0.58 compared to a year ago).
Wireless operating expenses increased this quarter as Rogers noted they activated and upgraded 71% more iPhones overall in the same quarter compared to a year ago, primarily due to the launch of the iPhone 5.
According to the Toronto Star:
“We’re attracting and retaining our highest lifetime value customers, which is squarely on strategy and the most significant driver of our top line (revenue),” Mohamed said after Rogers reported an adjusted profit of $495 million.
Wireless data revenue continues to increase due to the proliferation of smartphone and tablet usage, a growth of 18% and also comprises of 41% of their wireless network revenue. Analysts such as RBC Capital Markets analyst Drew McReynolds said the quarter was “better than expected.”