Rogers Communications reported its second-quarter earnings today and announced a 2 per cent decline from a year ago to $400-million as the cable giant faced stiffer competition in its key businesses.
“Our revenue and adjusted operating profit growth in the second quarter was highlighted by strong postpaid wireless smartphone sales and customer retention metrics, as well as exceptionally strong margins in both our wireless and cable businesses,” said chief executive officer Nadir Mohamed in a release.
“Despite highly competitive markets, we continued to leverage our technology leadership to deliver new and innovative products and services while at the same time taking decisive actions to drive operational efficiencies. Importantly, our continued generation of strong free cash flow enabled us to return a significant and growing amount of cash to our shareholders in the form of dividends and share buybacks.”
Print continued to be a sore spot for Rogers, but fortunately their digital editions continue to see growth in advertising.
- Second Quarter Revenue Grows to $3,106 Million, Adjusted Operating Profit Increases 3% to $1,276 Million, Adjusted Diluted EPS up 7%; Pre-Tax Free Cash Flow up 16% to $656 Million;
- Postpaid Wireless Net Subscriber Additions of 87,000 and Network Margins of 48.2% Reflect Improved Postpaid Churn, Stabilizing Trend in Postpaid ARPU and Continued Realization of Cost Efficiencies;
- Cable Total Service Units Down 4,000 in Seasonally Slow and Highly Competitive Quarter, While Margins of 47.8% Reflect Continued Revenue Growth and Successful Cost Management;
- Media Revenue Growth of 1% Reflects Strong Growth in Sports Broadcasting and Entertainment Offset by Continued Softness in the Ad Market;
- Cash Returned to Shareholders up 186% Including $557 Million of Dividends and Share Buybacks