OTTAWA (dpa-AFX) - Canadian communications and media company Rogers Communications, Inc. (RCI, RCI_A.TO, RCI_B.TO) reported Monday a profit for the first quarter that increased 16 percent from last year, reflecting revenue growth and improved margins amid continued efficiency improvements.
'The record first quarter levels of both revenue and adjusted operating profit which Rogers reported represents a solid start to 2013. The positive operating trends which we achieved during 2012 are carrying into the new year as evidenced by the continued improvements in ARPU, data and Internet revenue, churn and margin profiles which we reported for the first quarter of 2013,' President and CEO Nadir Mohamed said in a statement.
Toronto, Canada-based Rogers Communications reported net income of C$353 million or C$0.68 per share for the first quarter, higher than C$305 million or C$0.57 per share in the prior-year quarter.
Net income from continuing operations grew to C$353 million or C$0.68 per share from C$324 million or C$0.61 per share last year.
Excluding items, adjusted net income from continuing operations was C$414 million, or C$0.80 per share, compared to C$360 million or C$0.68 per share in the year-ago quarter.
Total operating revenue for the quarter grew 3 percent to C$3.03 billion from C$2.94 billion in the same quarter last year.
The revenue growth was attributable to the continued wireless network revenue growth of 4 percent and cable revenue growth of 4 percent, partially offset by 4 percent decline at Media revenues. Business solutions or RBS, revenues also grew 7 percent.
Consolidated margins for the quarter improved 170 basis points to 38.9 percent from the year-ago quarter, supported by strong adjusted operating profit margins of 45.5 percent at wireless and 49.8 percent at cable.
Wireless data revenue grew 22 percent and helped drive a 3.5 percent increase in blended ARPU amid the continued penetration and growing usage of smartphones, tablet devices and wireless laptops.
Wireless activated and upgraded about 673,000 smartphones, compared to about 642,000 in the year-ago quarter. This addition of smartphones increased the percentage of subscribers with smartphones to 71 percent of wireless' total postpaid subscriber base.
The company expanded its customer base with 32,000 wireless postpaid net subscriber additions and 18,000 total cable Service units. Monthly postpaid churn declined 40 basis points to 1.22 percent, while average monthly revenue per user or ARPU grew C$1.17 from last year to C$68.56.
RCI closed Monday's regular trading session at $50.73, up $0.28 or 0.56% on a volume of 0.50 million shares. However, the stock plunged $4.53 or 8.93% in after-hours trading.
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