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Rogers Communications' second-quarter subscriber additions beat on steady demand
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Rogers Communications' second-quarter subscriber additions beat on steady demand
Jul 24, 2024 5:15 AM

July 24 (Reuters) - Canada's Rogers Communications ( RCIAF )

beat analysts' estimates for quarterly wireless

subscriber additions on Wednesday, helped by steady demand for

its mobile plans.

The company added 112,000 monthly bill-paying wireless phone

subscribers in the second quarter, compared with estimates of

110,450, according to Visible Alpha.

Canada has been seeing a steady rise in immigration as it

welcomes more people in a bid to grow its population and boost

economy - increasing demand for Rogers' plans aimed at

newcomers.

The company's wide network coverage and 5G push have also

boosted subscriber numbers amid signs of an easing economy.

Rogers Communications ( RCIAF ) reported a net income of C$394 million

($285.80 million) in the quarter ended June 30, compared with

C$109 million a year earlier.

The company's total revenue of C$5.09 billion missed

analysts' estimates C$5.12 billion, while its adjusted earnings

per share was in line with expectations, according to LSEG data.

Rogers-owned Fido, a mobile network operator, raised prices

for its phone plans in July following in the steps of Bell's

Virgin Plus.

Competition in the Canadian telecom market has been heating

up as the three big providers - Rogers, BCE and Telus ( TU )

- battle for consumer dollars.

Rogers' free cash flow, a metric closely watched by

investors as it helps determine dividend payouts, rose around

40% to C$666 million in the second quarter, compared with

Visible Alpha estimates of C$708.7 million.

The company's media revenue rose 7% due to higher

sports-related revenue primary at the Toronto Blue Jays, which

Rogers owns.

Rogers reaffirmed its fiscal 2024 financial targets and said

its operating costs fell 3% to C$2.77 billion for the quarter.

($1 = 1.3786 Canadian dollars)

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