Rogers Communications Inc. (RCI), a Toronto-based telecommunications and media company, issued their first financial and operating results for the second quarter ended June 30, 2017 since Joe Natale became its CEO in April.
Key Financial Results (In millions of Canadian dollars, except per share amounts) are as follows:
Revenue: was UP 4% to $3.59 billion from last year’s second quarter and within analyst estimates.
Wireless service revenue: was UP 8% primarily as a result of a larger subscriber base and the continued adoption of higher-value Share Everything plans.
Cable revenue: was stable this quarter, as continued strong Internet revenue growth of 7% offset declines in Television and Phone revenue. (Excluding the impact of the CRTC decision that reduced access service rates, Cable and Internet revenue would have increased by 1% and 10%, respectively.)
Media revenue: was UP 4% primarily as a result of the continued growth of sports-related revenue, increased sales at Today’s Shopping Choice (TSC, previously branded as The Shopping Channel), and higher conventional broadcast TV advertising revenue, partially offset by lower publishing-related advertising and circulation revenue due to the strategic shift to digital media announced late last year.
Adjusted operating profit was UP 5%:
Wireless profit was UP 9% due to the strong flow through of revenue growth described above.
Cable profit was UP 3% as a result of a decrease in operating expenses and the on-going product mix shift to higher-margin Internet. (Excluding the impact of the CRTC decision, adjusted operating profit would have increased by 6% this quarter.)
Media profit was DOWN 30% this quarter primarily as a result of higher Toronto Blue Jays player payroll (including the impact of foreign exchange) and the impact of the strategic shift in publishing.
Net Income: was UP 35%, & adjusted net income was UP 20%, as a result of higher adjusted operating profit and lower depreciation and amortization; net income also increased as a result of a gain on disposition of certain real estate assets.
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