Rogers Communications Posts Unusually High Profit on Strong iPhone Sales

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Rogers Communications Posts Unusually High Profit on Strong iPhone Sales

6:10 am on October 29, 2008 | Category: Business, Mobile Devices, Wireless, Cell Phones

Canadian cable and wireless operator, Rogers Communications, posted a higher-than-expected third-quarter profit yesterday, as strong Apple iPhone sales provided a boost in revenue.

The company’s net income almost doubled from C$495 million ($0.78/share), from $269 million ($0.42/share) in the same quarter a year earlier. Analysts surveyed by Bloomberg had predicted a $0.51/share profit.

A total of 255,000 3G iPhones were activated by Rogers in Q3, as the company took on an exclusive contract to sell the popular device in Canada. This boosted Rogers’ quarterly wireless sales by 20% to C$1.73 billion, accounting for more than half of the company’s $2.98 billion in overall revenues.

“Customers embraced the iPhone,” commented Rogers COO, Nadir Mohamed, in a conference call yesterday, noting that mobile broadband and other advanced services “are going to generate significant growth for Rogers and the industry overall.”