Rogers Communications Announces Record Profits, Ups Dividend

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Rogers Communications Announces Record Profits, Ups Dividend

11:30 pm on November 2, 2006 | Category: Business, Telecom Services, Corporate

Canada’s largest cable television and wireless carrier, Rogers Communications Inc., announced plans to carry out a stock split and more than double its dividend this week, after reporting a massive increase in third-quarter earnings.

The company made a net profit of $154 million, or $0.48/share in Q3, compared to just $48.9 million during the same three-month period last year. Analysts had expected profits in the vicinity of $0.38/share.

Operating profit swelled by 33% to $784.3 million, while total revenue grew by 15% to $2.35 billion.

These very favorable results have prompted the company to announce a 2:1 split in its stock value, which has grown by almost 600% in the past four years. Rogers will also increase annual dividend payments from $0.15 to the equivalent of $0.32 per share.

This move is likely to attract a good number of disillusioned income trust investors in the months to come, but the company is promising not to become just another boring income stock.

“We’re certainly not going to start resting on our laurels, just collecting the cash without a strong commitment to investing to ensure that healthy harvests continue well into the future,” commented the cable and wireless giant’s Chief Executive Officer, Ted Rogers, when the company announced its quarterly results earlier this week.