2
Canadian cable giant Rogers Communications Inc. said it posted a profit in the fourth quarter amid higher demand across all its products and rate increases.
The Toronto-based company had a profit of $176-million, or 27 cents a share, in the three months ended Dec. 31. That compares with a loss of $67-million, or 11 cents, in the year-earlier period, caused by increased amortization expenses and other costs. Revenue rose 14 per cent to $2.37-billion in the fourth quarter of 2006.
A series of acquisitions have transformed Rogers from a regional cable operator into a communications conglomerate that sells wireless, cable, and Internet services, and also owns magazines and other media assets along with the Toronto Blue Jays. At one point last month, Rogers leapfrogged rival BCE Inc. in terms of market value.
“As 2007 unfolds, our focus re-mains steadfastly on delivering profitable growth through innovation and disciplined execution,” Rogers chief executive officer and founder Ted Rogers said on Thursday in a statement.
Rogers already reported its fourth-quarter subscriber results last month.
Revenue from the wireless business rose 20 per cent in the quarter to $1.26-billion. The company added a net 244,500 cellphone customers, helped in part by a reduction in customer turnover to a record low of 1.24 per cent a month. Customers also spent more on average each month as they used more wireless data and roaming services.
Rogers reported a 12 per cent gain in revenue from cable and Internet services to $505-million in the quarter. The company added 10,700 basic cable customers, an-other 44,800 high-speed Internet subscribers, and 69,600 digital TV clients. Price increases on both cable and Internet services further fuelled growth.
Revenue from the phone business climbed 32 per cent to $99-million after Rogers signed up 95,100 phone customers.
Its business solutions unit, which is targeted for expansion, reported a 8.4 per cent increase in revenue to $155-million, driven by greater demand for local phone service.
Rogers forecast that revenue this year will rise to between $9.7-billion and $10-billion from $8.84-billion in 2006. It expects an increase in 2007 operating profit to between $3.25-billion and $3.4-billion from $2.89-billion in 2006.
The company expects to add between 500,000 and 600,000 wireless subscribers this year, a slowdown from 610,000 in 2006. And Rogers said it will add between 625,000 and 725,000 basic cable, Internet, digital TV, and phone subscribers this year, compared with 666,000 in 2006.
