Rogers announced Q2 earnings today and for the company’s wireless results, expectations fell short of analyst estimates when it came to postpaid wireless additions.
The company saw 77,000 wireless net postpaid subscribers in the quarter, short of analyst estimates of 99,250. Wireless revenue was up 1% to $2.24 billion, while overall revenue at $3.78 billion also fell short of analyst estimates at $3.86 billion.
Despite the lower numbers, Rogers still saw Q2 profit of $591 million, up 10% over the year-ago quarter.
Rogers Infinite Plans Have Over 365,000 Subscribers
Rogers debuted new Infinite plans last month, which offer no data overages, starting at $75/10GB. Once data is exceeded, throttled speeds of 256 Kbps kick into effect (Bell and Telus are throttled at 512 Kbps).
During the company’s Q2 conference call today, CEO Joe Natale revealed there are now over 365,000 subscribers on Infinite plans, exceeded expectations. “While it is still early days, the response has been overwhelmingly positive,” said Natale, who explained nearly 66% of those opted for higher monthly plans than before, while 33% chose lower-priced plans.
Rogers said it originally forecasted the opposite would happen, “And so we were quite pleasantly surprised to see the inverse happening,” added Natale.
New 24 or 36-month device financing was recently introduced by Rogers, in what some believe may contradict the CRTC Wireless Code. The CRTC announced last week it would investigate to ensure device financing complies with the Code.
[via The Star]