Rogers Stock Slides on Lower Sales Projections

5:36 pm on July 28, 2009 | Category: Business, Corporate, Wireless

business/rogers2.jpg

Rogers Communications shares took a hit today after the Canadian cable and wireless giant reduced its sales growth projections.

Rogers expects overall revenue to increase by 2 to 4 percent this year, rather than the 5 to 9 percent that it predicted back in February. The company attributes the change to slowing advertising sales at its media business, which accounts for 13% of total revenue, as well as a decline in consumer wireless spending.

Average revenue per user (ARPU) at Rogers’ wireless business declined 2.3% to $63.09 per month in the second quarter, as customers spent less money on long distance and roaming amid the ongoing recession.

“We don’t see anything today that would say we’re in a customer recovery,” said Rogers CEO, Nadir Mohamed, in a conference call earlier today. The company’s shares fell C$1.53 to close at C$29.45 on the Toronto Stock Exchange.

Related Articles:

    None Found

    No Comments yet »

    RSS feed for comments on this post.

    Leave a comment

    XHTML: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>


    Published by TeleClick Enterprises
    Edited by Jeremy Maddock