Rogers’ Quarterly Net Income Rises 35 Percent, Beating Analyst Estimates
Canadian telecom company Rogers Communications Inc. reported a greater-than-expected 35 percent jump in second-quarter profit on Thursday, as a gain in wireless subscribers offset declines in its cable TV business.
According to a new report from The Globe and Mail, Rogers added 93,000 net postpaid wireless subscribers in the second quarter that ended June 30. Last year at the same time, the company enjoyed 65,000 subscribers.
“I think to date we’ve focused very well on what I’d call the lower hanging fruits,” said CEO Joe Natale on a call with analysts. He said addressing issues like “bill shock” with tools for customers to manage their data overage charges has been helpful, but he wants to improve processes throughout the company, not just at the immediate customer-facing level.
This is the first financial report issued by the Toronto-based telecommunications and media company under Natale’s watch since becoming Rogers’ CEO in April. The former CEO of Telus, Natale had a reputation for building customer satisfaction and reducing wireless subscriber turnover, certainly factors that would be critical to his success in the position.
“The focus on customer experience and loyalty is one that requires the whole organization to play,” Natale said. “That takes time. That’s not something that’s going to happen overnight but it’s fundamentally important.”
“While this was Joe Natale’s first quarter as CEO at Rogers, we do not see a significant strategy shift at the company for now,” said Desjardins Securities analyst Maher Yaghi. “Overall, the strong results in wireless are likely to overshadow the subdued cable results.”