Rogers Net Doubles and Churn Declines

Rogers Communications Inc. (NYSE: RCI), Toronto, reported that its earnings more than doubled to $344 million, or 54 cents per share, in the first quarter, up from $170 million, or 26 cents per share in the comparable year ago period, well ahead of analysts’ consensus estimate of 43 cents per share.

Strong performance by the wireless division fueled the earnings. The company added 97,000 subscribers, while reducing churn to 1.1 percent, down from 1.17 percent in the comparable year ago period. Rogers’ churn rate was similar to the 1.19 percent churn rate reported earlier by Verizon and superior to the churn rate reported by AT&T, ("Verizon Profits Up as it Adds Wireless Customers, Cuts Churn," April 28).

Rogers reported that its Fido Rewards is now the most successful wireless membership rewards program in North America with more than one million members.

The wireless division could get a further boost as it starts to carry the widely popular iPhone, which the company confirmed that it would do, though a time frame hasn’t been announced.

However, company president and CEO Ted Rogers cautioned in a prepared statement, “We must continue to demonstrate constraint on the cost side to protect ourselves from the economic downturn which seems to be spreading outside the U.S.”

Rogers’ home base of Ontario is already seeing some of that downturn, Rogers added.