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Rogers Q2 Earnings: Profits Weaken But Beat Analysts’ Expectations

2012/07/24

 

TORONTO – Rogers Communications Inc. (TSX:RCI.B) says profits weakened in the second-quarter as the company faced tougher competition in its key mobile phone division.

The Toronto-based company said Tuesday that net income declined 2.4 per cent to $400 million, or 75 cents per share, off from $410 million a year ago, or 74 cents per share.

The results beat analyst expectations on an adjusted basis, with net income of $478 million, or 91 cents per share, which is five cents higher than analysts expected, according to a survey by Thomson Reuters.

Revenue was $3.11 billion, up slightly from $3.1 billion in the comparable period, but below expectations of $3.14 billion.

“Our revenue and adjusted operating profit growth in the second quarter was highlighted by strong postpaid wireless smartphone sales and customer retention metrics, as well as exceptionally strong margins in both our wireless and cable businesses,” said president and CEO Nadir Mohamed in a release.

Rogers has been moving forward with a cost-cutting strategy announced earlier this year as competition in the mobile phone services remains fierce across the country.

In June, Rogers announced it was cutting 375 jobs due to tougher competition on all fronts. The reductions follow 300 job cuts announced in March.

Toronto-based Rogers is Canada’s largest cable TV operator and wireless operator and is a major magazine publisher, TV and radio broadcaster and owner of the Toronto Blue Jays.

It also owns a slate of print magazines including Maclean’s and Chatelaine.

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