Rogers’ third-quarter profit driven by wireless results

Rogers Communications Inc. reported Thursday its thirdquarter profit grew to $467 million, driven by the strength of its wireless business.

The Toronto-based company said its wireless division had 129,000 net additions to its postpaid services - an eight-year high for Rogers (TSX:RCI.B).

Meanwhile, Rogers Cable had 27,000 net additions for its internet services and an overall revenue growth of one per cent compared with the same quarter last year.

It said cable revenue growth was reduced by a regulatory rate decision and would otherwise have been up two per cent.

“Our team delivered on all key operating and financial metrics in our largest segment, wireless,” chief executive Joe Natale said.

“In a highly competitive quarter, cable financials were strong thanks to our internet competitive speed advantage.”

Rogers also said it now expects its 2017 adjusted operating profit will be between five and six per cent higher than last year, compared with its previous estimate of two to four per cent growth.

Rogers Media was the only major division to see a decline in revenue, which fell by three per cent compared with the third quarter of 2016 that featured the World Cup of Hockey.

In addition, the media division’s adjusted operating profit fell 18 per cent, primarily due to a higher Toronto Blue Jays player payroll and lower publishing-related revenue due to a shift to more digital media.

Rogers said its overall net income for the three months ended Sept. 30 amounted to 91 cents per diluted share, up from $220 million or 43 cents per share last year.

Last year’s third quarter was hit by costs related to the wind down of its Shomi business, an initiative by Rogers and Shaw Communications.

On an adjusted basis, Rogers said it earned $523 million or $1.02 per share for the quarter, up from $427 million or 83 cents per share a year ago.

Revenue totalled $3.58 billion, up from $3.49 billion in the same quarter last year. Wireless contributed $2.1 billion of revenue, Cable brought in $870 million and Rogers Media brought in $516 million of revenue in this year’s third quarter.