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Earnings

Earnings: Rogers Profits Up 84 Percent On Strong iPhone Sales

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imageAT&T isn’t the only carrier shining in the afterglow of the iPhone. Canada’s Rogers reported an 84 percent jump in profits, thanks largely to strong iPhone sales and subscriber growth. The company sold about 255,000 iPhone 3Gs during the last quarter and about half of them were sold to new subscribers. Although the carrier is selling the device at a comparable price point, Rogers’ earnings aren’t being affected by iPhone subsidies as much as they are at AT&T (NYSE: T). That’s not to say it isn’t impacting the bottom line: “The high upfront costs associated with adding iPhone subscribers so rapidly is an investment made to obtain customers with significantly higher than average revenue per user” for years to come, the company said.

Net income grew to $386 million and revenues climbed 14 percent to $2.34 billion. The carrier added 239,000 subscribers to its rolls in the quarter while average revenues per user increased 4 percent year-over-year to $61.20. Churn is down as well: postpaid dropped year-over-year from 1.12 percent to 1.11 percent while prepaid dropped from 3.2 percent to 3.04 percent. Finally, data revenue jumped 38 percent to $195.6 million. Release.

Oct 28, 2008 12:11 PM ET

Posted In: Money, Earnings, Companies, Apple, Countries, Canada, rogers communications

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