Rogers Communications released its third quarter results Wednesday, reporting an increase in profits and revenue.
Net income was $495 million, up from $489 million in the same quarter last year. Revenue increased to $3.17 billion, which puts it about one percent up from the same period last year. Adjusted operating profit was up five percent to $1.29 billion.
Rogers credits strong growth in smartphone subscriptions and in wireless data revenue.
“Despite intensely competitive markets, we continued to successfully leverage our technology leadership to deliver new and innovative products and services and to invest in our networks at a healthy pace, while at the same time continuing to generate strong earnings and free cash flow,” Rogers CEO Nadir Mohamed said in a statement.
Rogers is Canada’s largest wireless carrier, boasting nine million subscribers. Smartphone users account for 65 percent of the company’s post-paid subscribers and Rogers is counting on those smartphones to continue to generate big money.
“We continue to [be] very focused on our strategy around smartphones and attaching data to those smartphones,” said Rob Bruce, head of Rogers’ communications division. “People continue to…take more and more and larger data packages.”
In the third quarter, Rogers hooked up 76,000 new net post-paid customers. In the same quarter in 2011, Rogers attracted 74,000 post-paid customers.
“We’re attracting and retaining our highest lifetime value customers, which is squarely on strategy and the most significant driver of our top line,” Mohamed said.
Luckily for Rogers, they’ve been able to sign up several customers to lucrative three-year contracts. The arrival of popular devices like the iPhone 5 and new Android smartphones will also help, potentially giving a boost to holiday numbers and generating some positive outcomes for Rogers’ fourth quarter results.
Rogers did see some operating costs, like equipment costs and customer retention spending costs, go up in the quarter. But operating expenses dropped overall by 4.4 percent to rest at $667 million.
Rogers’ competition will be reporting their earnings soon, so a greater picture as to how Canada’s wireless picture is doing will emerge. BCE Inc. will report on November 1, while Telus will report its earnings on November 9.