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Rogers Communications Q1 Profit Surges

Based communications and media company Rogers Communications, Inc. announced first quarter financial results, reporting a surge in profit primarily on higher revenue from the wireless and cable segments. Rogers Communications' first quarter net income surged to C$344 million or C$0.54 per share from C$170 million or C$0.26 per share in the prior-year quarter. Adjusted net income for the quarter was C$270 million or C$0.42 per share, up from C$186 million or C$0.29 per share in the year-ago quarter. On average, five analysts polled by First Call/Thomson Financial expected the company to earn $0.40 per share for the quarter. Operating revenues for the quarter increased to C$2.61 billion from C$2.30 billion in the same quarter a year ago. Three Wall Street analysts expected revenues of $2.62 billion for the quarter. On a segmental basis, wireless revenues were C$1.43 billion, up16% from C$1.23 billion in the previous-year quarter. Revenues from cable rose 8% to C$925 million from C$855 million in the earlier-year quarter. Rogers business solution posted revenues of C$133 million, compared to C$145 million in the same quarter a year ago. Revenues from Rogers retail segment improved to C$100 million from C$91 million in the prior-year quarter. Revenues from media were C$307 million, up from C$266 million in the same quarter last year. Operating profit for the quarter was C$1.10 billion, up from C$798 million in the comparable quarter last year. Operating income was recorded at C$208 million, compared to C$349 million in the same quarter last year. Depreciation and amortization for the quarter increased to C$440 million from C$400 million in the previous-year quarter. During the three months ended March 31, 2008, the Canadian dollar weakened by 3.98 cents versus the U.S. dollar. This resulted in a foreign exchange loss of C$7 million during the three months ended March 31, 2008. Interest expense decreased by C$11 million, compared to the corresponding period in 2007. The decrease in interest expense is primarily due to the C$433 million decrease in long-term debt at March 31, 2008 compared to March 31, 2007, including the impact of cross-currency interest rate exchange agreements. The company said it has no specific revisions to the 2008 annual financial and operating guidance ranges provided earlier.