Despite growth across its sports properties, continued advertising softness in the conventional TV and publishing segments contributed to a 3% decline in revenues for Rogers Media in the first quarter, the company announced this week.
Speaking during a conference call with analysts on Monday, Rogers Communications president and CEO Guy Laurence said sports – particularly Sportsnet and the Toronto Blue Jays – contributed half of the media segment’s $448 million in revenues for the three months ended March 31.
“The issue is in conventional TV and publishing, and to a tiny extent radio – but not to the same degree,” said Laurence, adding that viewers and advertisers continue to gravitate towards its sports properties.
With no Canadian franchise in the NHL playoffs for the first time since 1969-70, Laurence admitted hockey was “not quite where we expected it to be,” but said declines were partially offset by a better-than-expected performance from the Toronto Blue Jays.
He said an ongoing restructuring of its media division is expected to bring costs in-line with revenues. The restructuring is expected to be complete by the end of the second quarter, he said.
The company’s total revenues for the quarter increased 2% to $3.24 billion, led by 5% growth in its wireless business to $1.9 billion. “We can now say that we’ve re-established momentum in the wireless market,” said Laurence, noting that customer churn in the quarter was the company’s lowest in seven quarters and represented its best Q1 performance since 2010.
Elsewhere, cable revenues fell 2% to $856 million, which Laurence attributed to subscriber losses in TV and home phone, as well as the company’s response to discounting in the market.
While the CRTC announced last week that 60,000 Canadians have signed up for so-called “skinny basic” cable packages since BDUs began offering them in March, Laurence said many Rogers customers have opted to retain their existing cable package.
“It’s a bit like going to McDonald’s,” he said. “We’ve now given customers the chance to buy a basic hamburger and fries separately; some do, but most stick with the meal option of a quarter pounder, fries and a drink because they are better value for money.”
Asked by an analyst if a specific type of customer is looking at the new skinny basic packages, Laurence responded: “It’s your grandmother.”
The company also reported progress in the area of customer service, with Laurence noting customer complaints about the Rogeres brand as measured by the Commissioner for Complaints for Telecommunications Services (CCTS) were down 65%.
Laurence also said roaming related complaints have fallen by almost 90% compared to three years ago with help from such services as “Roam Like Home,” which launched in 2014 and charges subscribers $5 day for unlimited calling and messaging when travelling to more than 100 global destinations.
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