Rogers Communications Q1 2014 result: revenue drops, income dips 18%

Canadian telecom service provider Rogers Communications today said its Q1 2014 revenue dipped marginally to C$3,020 million from C$3,027 million. Income dipped 18 percent to C$340 million. 2 percent dip in wireless revenue impacted the growth.

Business Solutions rose 1 percent, while Media rose 8 percent. The decrease at wireless was mainly related to pricing changes associated with new customer friendly simplified plans and lower priced roaming plans introduced in mid-2013.

Cable revenue was flat as continued Internet revenue growth was offset by television subscriber losses, promotional activity and the timing of pricing changes.

Data overtakes voice revenue

Wireless data revenue grew 10 percent exceeding voice revenue for the first time and represents approximately 51 percent of total network revenue. Activated 579,000 smartphones, of which 30 percent were new subscribers, and high-value smartphone customers now make up 76 percent of Wireless postpaid subscribers.

Basic cable subscriber losses moderated, both sequentially from the fourth quarter of 2013 and year-over-year, to 20,000.

Investments

Rogers Communications said it secured spectrum consisting of two 12 MHz blocks of contiguous, paired lower 700 MHz band spectrum for $3.29 billion.

It deployed newly acquired 700 MHz spectrum in communities in Vancouver, Calgary and Toronto to better customer experience.

Rogers Communications said it expanded data centre operations to 15 locations nationwide with Business Solutions opening Alberta’s first Tier III certified data centre giving business customers reliable, secure data services.

editor@telecomlead.com