Rogers Communications says third-quarter profits rose 29% thanks to an improved performance at its wireless operations amid heightened competition.
Net income at the country’s largest wireless carrier rose to $491 million, up from the $380 million reported a year earlier, Rogers said Wednesday. Revenue increased to $3.15 billion from $3.11 billion.
“The results clearly reflect the strength of our asset mix as well as the continuation of what I believe is an extremely competitive market,” president and CEO Nadir Mohamed told analysts on a conference call.
He said the results were still “a solid performance as we continue to generate growth in a highly competitive market.”
Rogers’ wireless division has faced tougher cellphone competition from players big and small and the company recently rolled out a faster long-term evolution wireless network to meet the needs of its cellphone and mobile laptop users.
The company added 74,000 net new subscribers in its post-paid wireless operations, dropping significantly from 108,000 added post-paid subscribers in the second quarter–even though this quarter is considered a busy back-to-school period when students set up new phone plans.
RBC Capital Markets analyst Andrew Calder said Rogers’ sounded confident but challenges remain.
“Competition pressures are the key impact, particularly from heavy new entrant advertising and awareness and new entrant offers,” Calder wrote in a research note.
Calder had estimated 99,000 net new subscribers in the lucrative post-paid category, which includes Blackberry, iPhone and Android smartphone customers on three-year contracts.
“Rogers is trying to ease the negative trend by being less aggressive with re-pricing, controlling credits and adjustments and smart bundling, which are challenging in the face of improving scale and aggressive offers from new entrants and pressure from Bell and Telus in the smartphone market,” he wrote in a research note.
The Toronto-based company is Canada’s largest cable TV operator, a major magazine publisher, TV and radio broadcaster and owner of the Toronto Blue Jays.
