Rogers Communications Quarterly Profit Jumps

By Robb M. Stewart

Rogers Communications' earnings jumped in the latest quarter as the Canadian telecommunications and media company benefited from last year's acquisition of rival Shaw Telecommunications and a rise in wireless subscribers.

Rogers, one of the country's dominant wireless telecom operators, reported net income of 394 Canadian dollars (US$285.8 million), or C$0.73 a share, in the second quarter, up from C$109 million, or C$0.20, a year earlier.

On an adjusted basis that excludes restructuring and other items the company believes distort the analysis of business trends, per-share earnings rose to C$1.16, just missing the C$1.17 mean forecast of analysts polled by FactSet.

Revenue for the period was little changed, edging up 0.9% to C$5.09 billion but coming in below the C$5.14 billion analysts expected.

Rogers wireless revenue rose 1.7% to C$2.47 billion with an increase in its subscriber base. Cable internet and TV revenue fell 2.4% to C$1.96 billion with promotional activity and a drop in the home-phone and satellite subscriber base, while revenue from a media arm that includes sport, TV and radio broadcasting climbed 7.3% to C$736 million thanks to a rise in sports revenue and the Toronto Blue Jays baseball team.

Combined customer gains in mobile phone and internet operations rose a combined 188,000 for the latest quarter and 275,000 for the first half of the year, the company said.

Rogers affirmed a forecast for 2024 service revenue growth of 8% to 10% over C$16.85 billion last year, and a 12% to 15% rise in adjusted earnings before interest, taxes, depreciation and amortization from C$8.58 billion in 2023.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

July 24, 2024 07:53 ET (11:53 GMT)

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