Wireless and cable gains helps Rogers continue to grow

by Andrew Roach on April 23, 2013

With all the fluctuations going on within the wireless industry, it means that it hasn’t been easy for telecom companies to make any solid profits over the last couple of months.

However, Rogers has managed to make some headway as they posted a 3% growth in their revenue over the first quarter of the year.

The growth has mainly been in the wireless and cable sectors where a shift in the subscriber base has helped the Toronto based firm to make some financial games over the last few months.

The news beats some prediction made by analysts who had been expecting Rogers to struggle against some of their main rivals.

One of the biggest contributions to the profit gain was the increase in the number of post-paid subscribers to the service rather than pre-paid users.

As post-paid customers often pay higher monthly fees than other customers, the switch has enabled Rogers to benefit financially since the start of the year.

This growth has been reflected on by Rogers chief executive Nadir Mohamed who commented on how the switch had helped the company. In a statement, he said that “I think it was really important this quarter that we [activated and upgraded] close to 700,000 smartphone customers and most importantly we’ve hit 71% of our [postpaid] base being on smartphones.”

As per usual, Rogers also performed well in the wireless sector where at least 60% of their business is usually generated. In Q1, the company managed to see a 3% rise in their wireless products helping solidify their place at the top of the sector.

However, it wasn’t all good news for Rogers who experienced a couple of disruptions particularly in their media arm which suffered losses of 4% over the last 3 months.

With Rogers performing strongly, the attention now turns to BCE and Telus to see how they perform before we can gauge how the telecom industry is going to perform throughout 2013.

Following on from their steady start to the year, Rogers can now look to build on their progress and solidify their presence within the wireless and cable sectors to help the industry to continue to be one of the strongest and competitive in the world.

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