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Rogers Achieves Major Increase in Wireless, Cable, and Phone Revenue

6:40 am on April 27, 2006 | Category: Business, Corporate, Telecom Services

Canadian cable and wireless provider, Rogers Communications Inc., is having a lot of success with pushing its long-term cell phone contracts, but is losing many of its prepaid customers to rivals, the companyâ€™s recent financial report suggests.

Rogers Wireless signed a total of 89,600 customers for postpaid contracts in the first quarter, but lost a disturbing 40,900 prepaid customers, who buy airtime as they need it.

This change is likely a result of the companyâ€™s strategic focus on the postpaid sector, where subscribers generally spend more and keep their plans for a longer period of time. Locking in almost 90,000 customers is a big win for Rogers, especially in preparation for new competition regulations, which will allow customers to keep their phone number when switching carriers.

“For the past several years, we’ve targeted our acquisition and retention acquisitions almost exclusively to the much higher value postpaid customer,” said Rogers Chief Operating Officer, Nadir Mohamed, at a recent shareholders meeting. “This has been absolutely pivotal in delivering our revenue and operating profit growth rates.”

The carrier also saw a 53.2% jump in its cable and landline phone revenue, largely due to the acquisition of Call-Net Enterprises Inc. last year.

Overall, Rogers achieved a 20.1% increase in revenue for the quarter that ended on March 31. Profits for the period came to $14.8 million, or $0.05 a share, which is certainly a change of tune from the $46 million loss in the first quarter of last year.

After the figures were announced, the companyâ€™s CEO, Ted Rogers addressed investors about rumors of an unsuccessful takeover bid on Shaw Communications, another cable, internet, and digital phone provider.

“I would say there’s absolutely no way that’s going to happen,” Mr. Rogers said, denying that the company has any intent of making such an acquisition. “We are totally committed to what you’ve heard here today.”

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