Rogers Communications' second-quarter subscriber additions beat on steady demand
By Zaheer Kachwala
(Reuters) -Canada's Rogers Communications beat analysts' estimates for quarterly wireless subscriber additions on Wednesday, helped by steady demand for its mobile plans.
The company added 112,000 monthly bill-paying wireless phone subscribers in the second quarter, compared with estimates of 110,450, according to Visible Alpha.
Canada has been seeing a steady rise in immigration as it welcomes more people in a bid to grow its population and boost economy - increasing demand for Rogers' plans aimed at newcomers.
Rogers Communications reported a net income of C$394 million ($285.80 million) in the quarter ended June 30, compared with C$109 million a year earlier.
The company's total revenue of C$5.09 billion missed analysts' estimates C$5.12 billion, while its adjusted earnings per share was in line with expectations, according to LSEG data.
Its media revenue rose 7% due to higher sports-related revenue primarily from the Toronto Blue Jays, which Rogers owns.
The planned sale of the company's real estate assets worth an estimated C$1 billion is taking longer than expected due to a soft market, Rogers executives said on a post-earnings call.
The company's wireless service revenue grew 3.5% in the quarter. It fell sequentially when compared with the first quarter due to "sustained promotional intensity," according to Canaccord Genuity analysts.
Rogers expects churn levels to remain elevated in the medium term as price conscious customers switch plans and move to prepaid offerings from postpaid. The company forecast churn declining in the long term beyond the next three or four quarters.
Competition in the Canadian telecom market has been heating up as the three big providers - Rogers, BCE and Telus - battle for consumer dollars.
Rogers' free cash flow, a metric closely watched by investors as it helps determine dividend payouts, rose around 40% to C$666 million in the second quarter, compared with Visible Alpha estimates of C$708.7 million.
($1 = 1.3786 Canadian dollars)
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shounak Dasgupta)