Rogers Q2 Grows 11% to $2.8 Billion

Rogers reported its Q2 2008 results and it has been a stellar increase with overall revenues for all areas (Communications, Cable and Media) by 11% to $2.8 billion (net income being $301 million after adjustments).

Major highlights from Q2 are from the wireless business:

– Wireless subscriber postpaid net additions were 92,000, while postpaid subscriber monthly churn was reduced to 1.06% from 1.15% in the second quarter of 2007. Wireless postpaid monthly ARPU (average
revenue per user) increased 4% year-over-year to $75.48 driven in part by the 34% growth in data revenue to $224 million, representing 15.5% of network revenue.

– Wireless announced that it would launch the highly anticipated Apple iPhone 3G in Canada on July 11, 2008 under both its Rogers Wireless and Fido brands with a wide variety of service plans available for voice and data combined.

– Canada’s Advanced Wireless Services (“AWS”) wireless spectrum auction ended on July 21, 2008 following 39 days and 331 rounds of bidding with bids totalling $4.25 billion. Wireless acquired 20 MHz of spectrum across all 13 provinces/territories with winning bids that totalled approximately $1.0 billion representing approximately $1.67 per MHZ pop. Wireless is required to submit payment in full by September 3, 2008

– Wireless announced the launch of its Fido UNO and Rogers Home Calling Zone plans that allow customers to make unlimited calls within their home using their wireless phone via a home WiFi broadband connection.
This converged service utilizes technology known as Unlicensed Mobile Access (“UMA”) and provides Rogers customers the convenience of having one phone, one number, one address book and one voicemail
which they can use inside and outside of their home.

– Wireless data revenue increased by 34% and 40% over the corresponding periods of 2007, to $224 million and $431 million, respectively. This increase in data revenue reflects the continued growth of text and multimedia messaging services, wireless Internet access, BlackBerry and other PDA devices, downloadable ring tones, music and games, and other wireless data services. Data revenue represented approximately 15.5% and 15.3%, of total network revenue

Ted Rogers, President and CEO of Rogers Communications Inc. said “The results for the second quarter reflect a good balance of continued healthy subscriber growth, double-digit revenue and operating profit growth, with continued margin expansion. While the competitive landscapes in which our businesses operate are constantly evolving, our unique combination of leading networks, powerful brand and distribution, and leadership in service and bundling capabilities positions Rogers uniquely for continued growth and success well into the future.”