Canada’s Rogers beats profit estimates on wireless business strength

(Reuters) -Rogers Communications Inc reported a better-than-expected quarterly profit on Wednesday, as gains in its wireless business helped offset weakness in its cable TV unit.

Demand for Rogers (NYSE:)’ 5G services has remained high, but increased cord-cutting hurt its cable business. The telecom giant’s wireless revenue grew 10% in the first quarter.

Cable revenue fell 2%. Rogers blamed increased competitive promotional activity and a decline in video and home phone revenue for the shortfall.

Earlier this month, Rogers closed its C$20 billion deal for Shaw Communications (NYSE:), capping two years of antitrust concerns and paving the way for the creation of Canada’s No.2 telecoms company. 

Big three carriers Rogers, BCE (NYSE:) and Telus (NYSE:) are fighting for dominance in Canada, where people are paying some of the highest mobile rates in the world.

In the three months ended March 31, Rogers added 95,000 monthly bill paying wireless phone subscribers, compared with 193,000 in the previous quarter.

The Toronto Blue Jays owner is also seeing its media business recover from the effects of the pandemic. Media revenue climbed 5%.

Rogers’ total revenue rose 6% to C$3.84 billion ($2.82 billion) in the first quarter ended March 31, compared with C$3.93 billion estimated by eight analysts polled by Refinitiv.

Excluding items, Rogers earned C$1.09 per share, beating estimates of C$1.01.

($1 = 1.3628 Canadian dollars)