(RTTNews) - Communications and media company Rogers Communications Inc. (RCI: News , RCI-A.TO, RCI-B.TO) Tuesday reported a decline in its third-quarter profit, reflecting various one-time items. On an adjusted basis, the Canadian company's net income rose from last year, driven by revenue growth mainly in its Wireless Network and Cable operations.

The company's third-quarter net income was C$485 million or C$0.79 per share, down 2% from C$495 million or C$0.78 per share last year.

On an adjusted basis, net income rose to C$505 million or C$0.82 per share from C$465 million or C$0.73 per share in the prior-year quarter. Adjusted results excluded, among other items, stock-based compensation expense of C$6 million as against a recovery of C$62 million last year.

On average, four analysts polled by Thomson Reuters expected the company to earn $0.53 per share in the quarter. Analysts' estimates typically exclude one-time items.

The company's quarterly revenue increased 2% to C$3.04 billion from C$2.98 billion in the previous year. Analysts projected revenues of $3.04 billion for the quarter.

Commenting on the third-quarter results, Nadir Mohamed, President and Chief Executive Officer of the company, stated, "Our third quarter results represent a healthy balance of growth, cost control and margin expansion, and double-digit increases in cash flow generation and cash returns to shareholders."
According to the company, it generated revenue growth at both Wireless network and Cable Operations, offset partially by lower wireless equipment sales and advertising sales declines at Media.

Wireless revenue totaled C$1.76 billion in the third quarter, an increase of 2% from C$1.73 billion last year. Wireless network revenue growth was fueled by postpaid net subscriber additions of 167,000 and wireless data revenue growth of 46%.

Data revenue, which now comprises 23% of the network revenue, was helped by the activation of more than 370,000 additional smartphone devices, predominantly iPhone, BlackBerry and Android devices. Subscribers with smartphones now represent approximately 28% of the overall postpaid subscriber base, up from 15% last year, and generate significantly higher than average ARPU. However, the growth in subscribers and data revenues was partially offset by economic pressures on roaming, long-distance and other usage based revenue items, the company noted.

Further, Rogers Communications stated that revenue from equipment sales declined year-over-year, reflecting large number of iPhones activated during that product's launch in the third quarter of 2008.

To receive FREE breaking news email alerts for Rogers Communications Inc. and others in your portfolio

 1   2   3   Next Page