Rogers Communications shares were hammered Tuesday morning, down as much as 6 per cent after the company beat expectations but lowered its revenue targets for the rest of the year.
The company predicted its top line performance would increase by up to four per cent in 2009, compared to earlier forecasts for up to nine per cent. The company reported profit of $374-million or 59 cents per share for the quarter ended June 30, up from year-earlier profits of $301-million or 47 cents per share. Analysts had expected it to earn 55 cents a share.
"Whereas we had slower growth on our top line due to sustained recessionary economic pressures and the increasing maturation of certain of our services, we were successful during the second quarter in reducing costs, returning increasing amounts of cash to shareholders and further enhancing the quality of our balance sheet," Rogers chief executive Nadir Mohamed said in a statement.