This article was last updated on April 16, 2022
Canada: 
Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…
USA: Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…
Canada’s largest mobile phone company, Rogers Communications Inc., has allegedly chosen quality over quantity in the second quarter, as it avoided wireless promotions in order to protect margins as mobile subscriber growth fell. According to the company, it saw a 24 percent decline in its net income but investors are applauding early results of a refreshed business strategy with a 2.7 percent share price rise in early trade.
According to a statement issued by Canaccord Genuity analyst, Dvai Ghose, “given low expectations and the lack of change in 2014 guidance, today’s release may provide some relief.” It was added that “all in all we see some signs of progress.” Statistically, Rogers only added 38,000 net wireless subscribers on contracts, which is a significant decline from the 98,000 added a year ago. However, it was highlighted that an average Rogers wireless customer has overall paid more per month in this quarter, at C$59.18, versus the previous one.
The Toronto-based company is gearing up to face more competition in its major markets as Quebecor Inc., a regional operator, has shown interest to buy small rivals to expand and become the fourth national wireless operator, i.e. a key goal of the federal government’s telecom policy. During a conference call with analysts, Rogers Chief Executive, Guy Laurence, indicated towards preparation for a potential new competitor to emerge and said that “there’s a lot of froth at the moment,” and “that creates some nervousness in the marketplace and you see that reflected I think in everyone’s share price right now.”
Be the first to comment