Rogers’ Profits Drop in the Third Quarter

From the Globe and Mail:

Rogers Communications Inc. saw profit drop by 3 per cent in the last quarter, falling short of analysts’ expectations as Canada’s largest wireless provider continues to suffer from a wave of new competition.

As new companies such as Mobilicity and Wind Mobile continue to push in, and old rivals BCE Inc. and Telus Corp. gain market share, Rogers profit fell to $359-million and 64 cents per share from $370-million and 61 cents per share in the previous year. Revenue was up 3 per cent to $3.2-billion. The company also announced an 11 per cent increase to its annualized dividend, bringing it to $1.42.

…In this most recent quarter, Rogers has continued its decline from the top of the Canadian wireless heap, a decline the company has admitted was an inevitability given how far ahead of its rivals Rogers has been. Its two incumbent wireless rivals have already reported results for this quarter, both of them outperforming Rogers: Bell saw a profit growth of 25 per cent while Telus saw soaring profit growth of 40 per cent. However, all of the so-called Big Three saw a loss in new subscribers due to “competition,” which likely means that many of the new entrants are starting to gain significant traction in the marketplace.

 A few things come to mind:

What do you think? How would you rate your experience with Rogers so far?

[Globe and Mail]