October 24, 2012 9:01 am
Rogers posted a net profit of $466 million in Q3, down 5% from a year ago. The company posted healthy revenue of $3.18 billion, up slightly in the same period. Notably, the company claimed that its wireless segment is one of its healthiest, with decreased churn and an operating profit margin of 48%. Rogers’ wireless department posted revenues of $1.74 billion and an operating profit of $843 million, up 3% from the previous year.
Rogers also had 76,000 net additions in the postpaid segment, up 2% from the previous year. Monthly churn was down to 1.34%, and postpaid ARPU dropped slightly to $71.50. Blended ARPU, which is postpaid and prepaid Average Revenue Per User, rose slightly to $61.92.
The company now claims 9.43 subscribers, a combination of 7.78 million postpaid and 1.64 million prepaid. Rogers activated 707,000 smartphones in the quarter, which is up nearly 100,000 from the same quarter in 2011. According to the release, “this is the second highest number of smartphone activations in any quarter in Rogers’ history,” and will likely be bested in Q4 with the launch of the iPhone 5.
Interestingly, the company claimed that 65% of its total wireless base is now made up of smartphone users, up 13% from the same time last quarter. When we spoke to Rogers president Rob Bruce last week, he claimed that approximately 90% of all new activations on the network are smartphones. Rogers claims that its LTE network is now accessible to 54% of the Canadian population, and it is expanding quickly across the country.