Rogers Reports Q1

Consolidated revenue grows 15.8% to $2.3B and consolidated operating profit increases 34.3% to $798M

May 2, 2007

5 Min Read

TORONTO -- Rogers Communications Inc. today announced itsconsolidated financial and operating results for the three months endedMarch 31, 2007.

Financial highlights are as follows:

Table 1:

Three months ended March 31,

(In millions of dollars, except per share amounts)



% Chg

Operating revenue(1)




Operating profit(2)




Net income




Net income per share:





Highlights of the first quarter of 2007 include the following:

  • Operating revenue increased 15.8% for the quarter, with all three of our operating units delivering solid double digit growth.

  • Strong subscriber growth continued at Wireless, with quarterly net postpaid additions of 94,500 compared to 89,600 in the first quarter of 2006.

  • Wireless postpaid subscriber monthly churn was 1.17% versus 1.47% in the first quarter of 2006, while postpaid monthly ARPU (average revenue per user) increased 8.7% year-over-year to $67.64. The ARPU increase reflects a 45.9% lift in data revenues, which represented 12.3% of total wireless network revenue in the quarter.

  • Cable Operations ended the quarter with more than 440,000 residential voice-over-cable telephony subscriber lines, with net additions of 74,600 cable telephony subscriber lines for the quarter (of which approximately 18,400 were migrations from the circuit-switched platform). The combined number of local telephony lines on both the cable telephony and circuit-switched platforms from Rogers Home Phone and Rogers Business Solutions reached 982,100.

  • Digital cable households increased by 69,600 in the quarter to reach a total of 1,203,600, while residential high-speed Internet subscribers grew by 42,100 in the quarter to a total of 1,338,700.

  • Wireless number portability ("WNP") was introduced in Canada on March 14, 2007 and consumers in Canada have been able to change carriers while keeping their cellular phone number since that date. Rogers' processes and systems were well-prepared for this complicated transition and we are committed to assuring that WNP is a seamless experience for customers in this new and more open wireless marketplace.

  • Wireless launched the Rogers VISION suite of services on its new High Speed Downlink Packet Access ("HSDPA") 3G wireless network, the fastest wireless network in Canada, including the first wireless video calling service in North America. This powerful 3G technology significantly improves data download speeds on wireless devices, providing a user experience similar to broadband hi-speed wireline services.

  • Wireless announced that it would turn down its earlier generation TDMA and analogue networks effective May 31, 2007 and move the remaining customers on these networks onto its advanced GSM network. The program has been successful to date, with the majority of subscribers already having chosen to transition to Rogers' more advanced GSM service, enabling them to enjoy the benefits of being on Canada's most reliable network.

  • Introduced the 'My Home Connections' plan that lets Rogers Home Phone ("RHP") customers make Canadian long distance calls from their home phone to any RHP, Wireless, or Fido number, at no additional charge, and also the 'My Home Circle' program, which expands the Wireless local calling circle for couples and families to now also include their RHP number.

  • Repaid $450 million aggregate principal amount of Cable and Telecom's 7.60% Senior Secured Second Priority Notes due 2007 at maturity during the quarter and issued a notice to redeem all of Wireless' US$550 million principal amount of Floating Rate Senior Secured Notes due 2010 on May 3, 2007 at the stipulated redemption price of 102% plus accrued interest to the date of redemption.

  • Achieved investment grade credit status following the upgrade of Rogers' corporate debt ratings by credit rating agencies Fitch and Moody's during the quarter, followed by a similar upgrade to investment grade by Standard & Poor's in April 2007.

  • On April 9, 2007, Media announced its plans to acquire ten Canadian conventional and specialty television services from CTVglobemedia Inc., subject to various regulatory approvals, in an all cash transaction valued at $138 million. Media also closed its previously announced acquisition of five Alberta radio stations during the quarter.

"This was another solid quarter across the board for Rogers and a strongstart to 2007 both operationally and financially," said Ted Rogers, Presidentand CEO of Rogers Communications Inc. "While many challenges lie ahead in thecoming quarters, we are well on track to deliver another year of strong growthin both revenues and operating profit. Our focus as 2007 unfolds remainsdisciplined execution of our strategy of profitable growth while continuing todeploy innovative products and services to add value to our customers' lives."

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

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