Rogers posts $455 million net profit on $3.25b revenue, net subscribers up 58k to 9.43 million

Daniel Bader

February 15, 2013 9:44 am

rogers

Rogers reported its Q4 earnings late last night, and we’re seeing the fruits of a company performing at the top of its game. Revenue was up 3% from the same period a year ago, to $3.25 billion, while net profit improved 30% to $455 million. Wireless data revenue was the clear winner here, accounting for 42% of the total network; total wireless revenue improved 5% to $1.92 billion.

According to Rogers’ retiring CEO, 69% of Rogers wireless customers are using smartphones, 940,000 of which were activated in the three months ending December 31st. Rogers now boasts an impressive blended ARPU (Average Revenue Per User) of $60.48, up $1.66 from the same time in 2011. This is due to a huge increase in postpaid ARPU ($69.75) and a sizeable shift in the company’s userbase from pre- to postpaid subscribers.

According to the earnings statement, the wireless data portion of Rogers’ blended ARPU increased by 19.6%, but was offset by a 6.8% decline in voice revenue, caused by a “heightened level of competitive intensity in the wireless voice service market.” In other words, carriers are realizing where their golden ticket lies, and it’s no longer with users making phone calls.

Rogers’ total customer base now sits at 9.437 million customers, well ahead of second-place Bell and third-place TELUS. It’s interesting to note that TELUS now has a higher blended ARPU than Rogers ($60.95 to $60.48), likely because Rogers has a higher percentage of prepaid customers in relation to its wireless subscriber base.

The company has, with 69% of its wireless base on smartphones, the highest penetration in Canada, and it’s guidance for 2013 looks to convert even more customers to postpaid smartphone plans. Without reading too much into the order of the list, according to the release, “the smartphones activated and upgraded during the quarter were predominantly iPhone, Android, Windows Mobile and BlackBerry devices.” We’re interested to see how the BlackBerry Z10 affects the makeup of Rogers’ smartphone base, but 2013 looks to be another successful year for the company.

Source: CNW

  • nemet

    “the smartphones activated and upgraded during the quarter were predominantly iPhone, Android, Windows Mobile and BlackBerry devices.”

    The types of smartphones that are on the market. The types of smartphones that they sell.

    *slow clap*

    • Porilaisten

      LOL

      I guess that leaves out the Doro PhoneEasy.

    • some guy

      WHAT!? No WebOS?
      -_-

    • pimp

      those who are with rogers. be sure to cancel your services to screw them over

    • Mexico Ron

      Love it! Go Rog!

  • wotzit2ya

    13% profit …………..not bad huh Robbers

  • Fox

    Some analyst from Deloitte and Touche was going around during their tech road show in various cities saying how Rogers is losing money on data ….. that data costs $7.50 GB and how Rogers offers 6 GB for $30 and thus is losing money. This was utterly ridiculous at the time and is even more obvious with the release of their financials. Consultants lol.

    • some guy

      I think they were confusing what it costs the average consumer with what it costs Rogers…

  • peeple

    rogers gouging customers one at a time

  • Porilaisten

    $69.75 postpaid ARPU

    That is ABSURD

  • kirilmatt

    I’m with rogers simply because there’s no small players in st johns nl. I’ve had a really bad experience with telus and bell.

  • screamer

    More and more… why not giving money back to the customers or at least to the workers. How much does somebody get who has to work in the call center 14 $ ? Same for telus give us money back!

    • cam c

      Much better,actually for 1st party offices of which there are 8 – 10. Third party employees are always underpaid in comparison no matter what business(‘s) they’re supporting due to the nature of their employer.

    • Curtis

      Most Telecom company call centers start closer to the $20/hour mark.

      I don’t know about Rogers, but I know that TELUS has a revenue bonus structure, as well as employee stock programs that help share the wealth with the employees.

      TELUS gives large amounts of money to various charities, and community organizations in the communities that they operate in.

      They also spend large amounts of their capital across Canada benefiting both the employees, contractor companies, and the communities.

  • Derp

    Based on how much they’re robbing us, they had better be making a profit.

  • What about fido?

    Does this include Fido numbers too?

  • ericw

    Companies of this size are going to care way more about ARPU then value, and more about shareholders than customers. Want to be treated right? buy shares in RoBellUs but drop to the small three.

  • screamer

    But if they have good money give the employees at least a nice christmas bonus!!!

  • David

    We gotta bring that number down.

  • 3rd Party Employee

    $11.50 an hour… 4.5 year tenured agent, longest in my center for ROGERS. its an absolute joke

    • juleso

      you’ve been with them for 4.5 years and are at $11.50 an hr?

      are you (potentially) entitled to any bonus or incentive pay

    • WirelessBoy

      If you are a 3rd Party Employee then you have an issue with the company that you work for, you obviously do not work for Rogers directly. Your company has a contract with Rogers and they in turn pay you so take it up with your company.

  • Blackberry Please

    Since Rogers made a profit, can you ask to mail me a new blackberry z10. Thanks.

  • Good

    Easy to make that much money when Canadian government has anti-foreign company laws (protection laws) to protect these overrated Canadian companies. Funny how none of these Canadian companies offer their services outside of Canada. I guess that’s got to do with how these companies wouldn’t be able to survive against real competition. Shame on Canadian government for protecting these garbage companies and screwing little guy over.

  • Jay

    @Good Rogers employs over 20 thousand in Canada directly and few more thousands indirectly. I bet your wind sends all the profits overseas along with the jobs. I bet you don’t care because you don’t work and live off your girlfriends money

  • robellus

    I heard they are outsourcing to India and Philipines… that will help with better profit.

  • Enzo

    I would love to hear your thoughts on this, but from a business perspective, $3.25 billion and only $455 million profit means that some serious things need to be changed about the efficiency of this corporation, and of course consequently some savings passed on to consumer. And of course that would further increase revenue.

  • changiman

    All those profits just from stealing from Canadians, they should be ashamed of themselves!!!