Roger Communications reports growth in cable, media and business solutions
Operating income up 6 percent for the year, with media revenue up 5 percent
The Canadian communications company Rogers Communications is a diversified company, which would come in handy when media is not doing so well. But Rogers was able to report growth in both cable and media businesses in its year=end earnings report.
“Our fourth quarter results largely reflect the continued impact of new customer-friendly wireless roaming and simplified sharing plans we put in place several quarters ago which have been dilutive to our revenue growth rate” Anthony Staffieri, Executive Vice President and Chief Financial Officer said in its earnings statement. “However, we delivered continued top-line growth in Cable, Media and Business Solutions. Our discipline around costs allowed us to further expand margins and meet all of our financial guidance commitments for 2013, while the 5% dividend increase we announced this morning reflects our confidence in the ability to grow cash flows over the longer term.”
Rogers reported slightly loser wireless revenue results, down 2 percent. But cable, business solutions and media were up, beating the performance of many U.S. companies in the same space.
Rogers was able to announce several new media deals this last year. Rogers signed an exclusive 12-star pact with the NHL to broadcast national hockey games starting with the new 2014-2015 season in the fall. Rogers also launched Next issue Canada, the Canadian equivalent of Next Issue, the digital newsstand supported by Condé Nast, Time Inc. and other major magazine publishers.
Rogers also added MLB Network to digital television offerings starting with the new season.
“While I’ve only been on the job a short while I believe we have a unique opportunity to move the business forward in ways that will be very rewarding for our customers, our shareholders and our employees,” said Guy Laurence, the new President & Chief Executive Officer, who succeeded Nadir Mohamed who retired at the end of 2013.
“The foundation of the company is strong and we continue to generate healthy margins and cash flow, but our rate of growth has slowed. Currently, I’m criss-crossing the country listening to all of our key stakeholders to hear their feedback and to develop a detailed plan that will build on our legacy and grow shareholder value for many years to come. I know we can do better and this is a key focus for me and the management team,” Laurence said in the company’s statement.