(Toronto) Rogers Communications on Wednesday posted a 73% decline in profit for its most recent quarter, which saw the closing of its acquisition of Shaw Communications.
The Toronto-based telecommunications company said its second-quarter profit of $109 million compared to net profit of $409 million for the same period last year.
Earnings per share for the quarter ended June 30 were 20 cents, down from 76 cents a year ago.
Rogers attributed the sharp drop in net income and earnings per share to an increase of about $500 million in quarterly amortization of property, plant and equipment and intangibles resulting from assets acquired as part of its combination with Shaw, for $26 billion. , which was concluded in April.
The two companies obtained final government approval for their deal in late March, after agreeing to certain conditions, including the sale of Shaw’s wireless business, Freedom Mobile, to Quebec’s Videotron, a subsidiary of Quebecor.
“We delivered strong results in the second quarter and our core businesses continued to grow in remarkable fashion,” Rogers President and CEO Tony Staffieri said in a press release.
“We have raised our guidance for the year and I am pleased to report that the integration with Shaw is proceeding faster than expected. We are proud that more and more Canadians are choosing Rogers as we invest in customer service and networks to achieve long-term growth. »
On an adjusted basis, net income reached 544 million, which was 17% higher than 463 million for the previous second quarter, while adjusted earnings per share fell from 86 cents to $1.02 at most. recent trimester.
Analysts on average had expected earnings of $1.02 per share on an unadjusted basis, according to forecasts compiled by financial data firm Refinitiv.
Revenue rose 30% to $5 billion in the most recent quarter, up from $3.9 billion in the previous second quarter.
Rogers revenue was boosted by the addition of 170,000 net mobile postpaid subscribers, up 39% from 122,000 last year, which the company said was attributable to the sales and customer satisfaction performance in a growing Canadian market.
The company further noted that it has also introduced new 5G plans starting at $55 per month.
It recorded a 7% increase in wireless revenue in the quarter, primarily due to mobile subscriber growth, the addition of Shaw customers following the merger, and rising roaming revenues associated with increased travel.
Rogers’ monthly churn for net postpaid mobile subscribers was 0.87%, up from 0.68% in the prior second quarter.
Average monthly revenue per Rogers mobile phone user was $56.79, down 3.5% from the second quarter a year earlier.
Rogers attributed the drop to an increase in its range of lower-cost plans in the wake of the Shaw acquisition.
Company in this story: (TSX: RCI.B)
