Canada’s Rogers Communications Inc on Thursday announced a better-than-expected fourth-quarter profit that beat analysts’ estimates.
The hiked results came largely due to sign up of more wireless postpaid subscribers, as it remained successful to add 112,000 new customers in the fourth-quarter, up from 72,000 net wireless postpaid subscribers added a year earlier, and that’s in a market where aggressive promotions and discounts are common to lure customers. With that rise in the quarter, Rogers ended the year with a total wireless subscription of 10.8 million.
Rogers, being one of the Big Three telecoms in the Canada, to stay ahead in the country’s fast paced mobile market, remained investing in its wireless network and customers services.
Net income of Toronto-based telecom and cable giant jumped to C$502 million ($375.78 million), in the fourth quarter, up from net income of C$499 million a year earlier.
On the scale of per share, Rogers earned 97 Canadian cents per share which remained even with a year earlier.
On an adjusted basis, Roger’s net income remained C$585 million or C$1.13 per share against that of C$525 million or C$1.02 per share a year ago.
The average cost paid by its wireless customers for services was C$55.91 in the reported quarter, whereas the average amount customers paid per month for its wireless services was C$54.95 a year ago.
In the fourth quarter, Rogers generated revenue of C$3.94 billion which remain higher from revenue of C$3.73 billion in the quarter a year ago; when due to system malfunctions during the important pre-Christmas period caused lost sales to Rogers.
After the results Rogers, for the first time since 2015, also raised its quarterly dividend by two Canadian cents to 50 Canadian cents. Last year, the amount paid out by Rogers to its shareholders was C$988 million.
In 2019, Rogers is expected to be spending up to C$3.05 billion on capital projects.