Rogers Communications Inc. swung to a profit in the first quarter as it was boosted by a foreign exchange gain while it managed to narrow the loss of basic cable subscribers .
On the Toronto Stock Exchange, its B class shares rose 8 per cent in the afternoon.
The Toronto-based company reported profit of $23.7-million or 6 cents a share, compared with a loss of $97-million or 53 cents a year ago. In last year’s quarter, Rogers took $11-million in writedowns.
Revenue rose 14 per cent to $1.1-billion from $984-million a year ago.
Its results were boosted by a foreign exchange gain, which reflects change in the value of its U.S. dollar debt, of $120.5-million. The dollar has risen by up to 8 per cent so far this year.
On an operating basis, its profit rose 30 per cent to $309.2-million from $239-million a year ago.
The company was expected to post a loss of 23 cents a share, according to a poll by Multex.com Inc.
“The solid financial and operating results of the first quarter were an excellent start to the year and were balanced across all of the operating companies,” Ted Rogers, president and CEO of Rogers, said.
“In both our Cable and Wireless businesses we’ve succeeded in strengthening our sales and marketing, reducing churn, driving down activity levels and lowering capital expenditures, while Media has benefited particularly from the strong results at two of its newest properties, OMNI.2 and Sportsnet. “
Rogers Cable reported a 12 per cent rise in revenue, which includes cable, Internet and its video store operations. Operating profit rose 19 per cent to $428=million from $380-million a year ago.
In terms of subscribers, the company lost 700 basic cable, compared to a loss of 18,000 in the year-ago period. Digital subscriptions rose by 33,100 as it saw gains fuelled by its cable and Internet bundling packages.
At the end of March, 19 per cent of its basic subscribers were digital customers, compared with 11.4 per cent a year ago.
Rogers Wireless, parted owned by AT&T Wireless Services Inc., reported profit of $36.6-million or 26 cents a share, compared with a loss of $38-million or 36 cents a year ago. Revenue rose 16 per cent to $509-million from $438.3-million a year ago.
© The Globe and Mail
Only GlobeinvestorGOLD combines the strength of powerful investing tools with the insight of The Globe and Mail.
Discover a wealth of investment information and and exclusive features.
