On Feb. 2 (Reuters) – Higher roaming charges and promotional offers during the holiday quarter helped Canada‘s Rogers Communications Inc (RCIb.TO) beat estimates for quarterly revenue, profit, and phone subscriber growth on Thursday.
Rogers has been successful in a highly competitive market with some of the highest wireless charges in the world thanks to its efforts to expand its 5G network and bundle subscriber plans.
Shares of the telecom operator rose 1% to C$65.34 on the Toronto Stock Exchange after it added 193,000 wireless phone customers who pay monthly bills, exceeding the FactSet fourth-quarter estimate of 146,800.
Results from the smaller operator BCE Inc (BCE.TO) were released earlier in the day. They reported an increase of 154,617 monthly mobile bill paying customers.
Rogers expects total service revenue (excluding equipment sales) to increase by between 4% and 7% in fiscal 2023, up from 6% growth in fiscal 2022.
Rogers CEO Tony Staffieri recently told investors and analysts that the company expects its wireless business to see continued growth in 2018 thanks to rising immigration of workers and students and the potential for greater telecom penetration in Canada.
Without giving a specific date, Rogers stated it would issue a new forecast following the completion of its merger with Shaw Communications Inc (SJRb.TO). This week, the deadline for the deal’s completion was pushed back from the end of January to the 17th.
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Rogers’ media division saw a 17% increase in revenue to C$606 million ($456 million) during the holiday quarter thanks to an increase in advertising and sports-related income.
The company’s core wireless business saw a 7% increase in revenue to C$2.58 billion, which was in line with projections.
During the period under review, net income soared 25% to $508 million (C$702 million). With an adjusted profit of C$1.09 per share, the company surpassed the Refinitiv consensus estimate of C$1.01 per share.
The increase in sales was 6%, to C$4.17 billion, which was above the median forecast of C$4.15 billion.
Assume a conversion rate of 1 Canadian dollar = $0.7530 USD.
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