Rogers Reports Q3

Consolidated revenue grows 13% to $2.6B

November 1, 2007

3 Min Read

TORONTO -- Rogers Communications Inc. today announced its consolidated financial and operating results for the three and nine months ended September 30, 2007.

Highlights of the third quarter of 2007 include the following:

  • Generated continued strong double-digit growth in quarterly revenue and operating profit (as adjusted) of 13% and 23%, respectively. Free cash flow, defined as operating profit (as adjusted) less integration and restructuring expense, additions to property, plant and equipment and interest expense, increased 91% to $442 million. In addition, net income increased 75% to $269 million.

  • Wireless subscriber postpaid net additions were 195,100 compared to 171,200 in the third quarter of 2006. Postpaid subscriber monthly churn fell to 1.12% versus 1.30% in the third quarter of 2006. Wireless postpaid monthly ARPU (average revenue per user) increased 7% year-over-year to $75.15 driven in part by the 53% growth in data revenue to $183 million. Data revenue now represents 13.6% of network revenue with monthly data ARPU in the quarter exceeding $10 for the first time.

  • Cable and Telecom ended the quarter with 590,500 residential voice- over-cable telephony subscriber lines. Net additions were 81,200 subscriber lines for the quarter, of which approximately 7,800 were migrations from the circuit-switched platform.

  • Internet subscribers grew by 55,000 to a total of 1,418,500, while basic cable subscribers increased by 9,100 to a total of 2,275,400 and digital cable households increased by 54,800 to reach a total of 1,291,800.

  • Cable launched three new 'triple play' packages that combine digital cable, high-speed Internet and Rogers Home Phone services in discrete packages and with easy to understand price points. These packages range from a basic starter package to a VIP Plus package, with the selection allowing our customers to choose the television, high-speed Internet and Home Phone plan that best meets their needs.

  • The CRTC approved the agreement under which Rogers Media acquired five Citytv television stations on October 31, 2007. This acquisition gives Media a significantly enhanced broadcast television presence in the largest Canadian markets outside Quebec and is a natural complement to Media's existing television, radio and specialty channel assets.

  • Successfully completed the amalgamation of RCI with its wholly owned Cable and Wireless holding company subsidiaries on July 1, 2007, with RCI assuming all the rights and obligations under the outstanding Cable and Wireless public debt indentures and swaps. As part of the amalgamation process, RCI entered into a new unsecured $2.4 billion bank credit facility. This amalgamation was effected principally to simplify the Company's corporate structure to enable the streamlining of reporting and compliance obligations. This intracompany amalgamation did not impact the consolidated financial position or results previously reported by the Company.

"The company's continued healthy growth in subscribers and cash flow reflect our intense focus on delivering innovative products, great customer service and profitable growth," said Ted Rogers, President and CEO of Rogers Communications Inc. "While our brand, franchises and markets are all strong, we have much work to do to maintain our leadership position."

Rogers Communications Inc. (NYSE: RG; Toronto: RCI)

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