Today, Rogers announced its Q1 2016 earnings. The company states that in the three months ending March 31, it earned $3.24 billion in revenue, with an adjusted net income of 263 million at $0.51 per share.
Revenues were two percent lower this time last year, however; net income shows a loss of approximately two percent, as well. Rogers added 14,000 wireless postpaid subscribers, an improvement of 40,000 year-over-year. Total number of wireless subscribers is now at 9,872,000 — 8,285,000 post-paid and 1,587,000 prepaid — which is an overall decrease of 5,000 subs from last quarter.
The company is also reporting an adjusted revenue of $0.51 per share, and an adjusted net income of $263 million. Though this number does show a decrease in net income of 4.5 percent from last year, it’s nowhere near the 23 percent drop in net income Rogers saw last year compared to the year before.
Wireless revenue increased from $1.8 billion to $1.9 billion, with an increase of five percent from the same period in 2014. Rogers attributes much of their increases in the wireless space to both their acquisition of 154,000 prepaid Mobilicity subscribers in 2015 and their focus on Rogers Share Everything Plans. The company claims that the purchase of Mobilicity combined with the widespread adoption of Share Everything Plans resulted in the four percent increase seen in network revenue this quarter.
Rogers also experienced a significant increase in equipment sales this quarter, up 28 percent from this time last quarter. It attributes these increases to a greater number of devices purchased, higher equipment prices and a two percent decrease in device upgrades by existing subscribers. Wireless churn decreased seven basis points to 1.17 percent, down from 1.24 percent this time last year.
Furthermore, postpaid ARPA (average revenue per account), a performance indicator which Rogers began reporting last year, was $112.23 for Q1. However, prepaid significantly dropped this down to a blended APRA of $58.54.
“We posted our best first-quarter Wireless postpaid churn in over five years thanks to the quality of our networks, the value of our offerings, and our improvements to the customer experience,” said Guy Laurence, President and Chief Executive Officer. “Overall, we delivered another quarter of revenue growth, along with continued improvements in key subscriber metrics, despite an intensely competitive quarter. With momentum in Wireless, continued growth in Internet, and a clear path forward for our TV and media businesses, we’re well positioned to achieve our 2016 financial guidance.”
Related Reading: Rogers Q4 2015 earnings: wireless growth and Blue Jays offset TV losses