“It’s true,” CFO
He added the decision to sell the company's enterprise data centres, which focus on third-party sales, will not affect its wireless services as they are managed separately. The company did not confirm how many of its 12 Canadian data centres would be sold.
While Rogers plans to divest some properties this year, Brandt said a slowdown in the real estate market could hamper their plans.
The push to sell real estate assets comes as Rogers reported reaching its target of
"Having hit the
This April marks a year since the
There are still some key integration projects that need to be completed alongside taking on opportunities with vendors — all improving efficiency, he told analysts.
He added Rogers is working on revenue synergies as it expands its footprint in the enterprise space with bundle packages, particularly in
The sale of its Cogeco stake and some
Rogers reported a first-quarter profit of
"We believe that having reached the targeted
The company reported its wireless service revenue went up nine per cent in the first quarter of 2024, compared to the same period last year, mainly due to a higher number of customers from both the Shaw Mobile integration and subscriber growth.
Though the company expects to compete aggressively on price for its lower-cost plans and flanker brands such as Fido, Staffieri said they are growing subscriber revenue at higher price points as well.
Staffieri said a "real catalyst" for that increase has been consumers moving to the Rogers Premium brand, which is switching to its 5G network, with a
The company’s mobile phone average monthly revenue per user was
Dubreuil said postpaid net adds were higher than what Desjardins anticipated.
“However, we believe the new lower federal immigration targets are not yet reflected in the quarter,” he said in a note to clients.
Despite a proposed slowdown in immigration, Staffieri said the company expects to see growth of four to 4.5 per cent this year. That's down from more than five per cent last year but the CEO said this year's estimates are "extremely strong."
“Growth in the market is a combination of two factors – half of it roughly is from penetration gains and the other half is related to the ‘new to Canada’ category,” he said.
Monthly churn, or customer turnover, was 1.1 per cent during the quarter, significantly higher than last year’s 0.79 per cent. Although, Dubreuil said, it was in line with expectations.
During its annual meeting, Rogers announced a 10-year agreement with Comcast, bringing more variety to its entertainment section and enabling the use of 10G technologies.
The partnership will also see Rogers launch a product designed to maintain an internet connection during local outages. When the power goes out, the rechargeable battery-equipped device automatically transitions to its cellular backup function so connectivity is maintained.
Media revenue at Rogers amounted to
Rogers noted the revenue decline came in part because of comparison with the first quarter of 2023, when a one-time benefit boosted the bottom line.
On an adjusted basis, Rogers says it earned
This report by The Canadian Press was first published
Companies in this story: (TSX: RCI.B)
Note to readers: This is a corrected story. An earlier version referred to the wrong quarter in the headline.
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