Rogers reports Q4 results, says slow growth was caused by new 2-year contracts and the CRTC’s Wireless Code

Rogers announced their Q4 and 2013 year-end results today. This is the first time we’ve heard from new President and CEO Guy Laurence, who stepped into the role when Nadir Mohamed departed on December 2nd.

Laurence stated on his first month that “While I’ve only been on the job a short while I believe we have a unique opportunity to move the business forward in ways that will be very rewarding for our customers, our shareholders and our employees. The foundation of the company is strong and we continue to generate healthy margins and cash flow, but our rate of growth has slowed. Currently, I’m criss-crossing the country listening to all of our key stakeholders to hear their feedback and to develop a detailed plan that will build on our legacy and grow shareholder value for many years to come. I know we can do better and this is a key focus for me and the management team.”

As for Q4 specific wireless results, Rogers reported a 4% decline in wireless revenue ($1,851b) and this was directly caused by “lower priced roaming plans and pricing changes associated with our new simplified plans.” For the year 2013 wireless revenues topped $7,270b. Rogers subscriber base is now sitting at 9,503,000 — 8,074,000 postpaid and 1,429,000 prepaid — which a slight increase of 5,000 subs from last quarter. Rogers says the the reason for the slow in subscribers was blamed on the industry transition from 3-year to 2-year plans and the recent adoption of the CRTC Wireless Code.

Blended ARPU (Average Revenue Per User) was $58.59. Data ARPU was $28.95, up $3.23 over last year. Voice ARPU was $29.64 and saw a massive drop of $5.12. 75% total postpaid subscribers now have a smartphone.

Source: CNW