By Adriano Marchese
Rogers Communications, the Canadian telecom company that recently merged with Shaw Communications, reported a decrease in net income for the second quarter. The company’s profit declined to 109 million Canadian dollars ($82.8 million), or C$0.20 a share, compared to C$409 million, or C$0.76 a share, in the same period last year. This decline was primarily due to higher restructuring and acquisition costs related to the Shaw acquisition.
However, on an adjusted basis, which excludes exceptional and one-off costs, earnings rose by 19% to C$1.02 a share, up from C$0.86 a share. Despite this increase, the adjusted earnings fell short of analyst expectations of C$1.11 a share, according to a FactSet poll.
Total revenue for Rogers Communications increased to C$5.05 billion from C$3.87 billion. Although this growth in revenue fell slightly short of analysts’ prediction of C$5.08 billion, it was driven by the strong performance of Rogers’ cable and wireless businesses.
During the quarter, Rogers added 170,000 new mobile phone customers, marking a significant YoY increase of 39%.
Rogers stated that its integration with Shaw is progressing ahead of schedule. In March, the C$20.5 billion takeover of Shaw by Rogers received final approval from Ottawa for a key license transfer.