Rogers Canada recently released its Q2 2024 financial and operating results, showcasing significant growth in wireless and internet services. Here are some key highlights from their report:
– 188,000 combined mobile phone and internet net additions were recorded in Q2, amounting to a total of 275,000 year-to-date.
– Specifically, there were 112,000 postpaid mobile phone net additions, 50,000 prepaid net additions, and 26,000 retail internet net additions. Rogers has added a total of 1.7 million mobile phone and internet net additions over the past 10 quarters.
– The total number of postpaid mobile phone subscribers now stands at an impressive 10.6 million.
In terms of revenue and earnings:
– Wireless service revenue saw a 4% increase, while adjusted EBITDA rose by 6% with a margin of 65%. Blended ARPU also saw a slight increase of 1%.
– Cable revenue experienced a decrease of 2%, but adjusted EBITDA increased by 9%, resulting in a margin of 57%.
During the second-quarter earnings call, Rogers’ president and CEO Tony Staffieri addressed the higher churn levels within the company:
– Staffieri acknowledged the current churn rates but expressed optimism for future improvements in customer retention.
– Monthly churn for net postpaid mobile subscribers increased to 1.07 percent from the previous year’s rate of 0.87 percent.
Staffieri attributed higher churn rates to market dynamics and price-conscious customers:
– He noted that most churn occurs within flanker brands like Fido and Chatr as customers seek out the best plan deals.
– Price changes in bring your own device plans from competitors like Fido, Koodo, Virgin Plus, and aggressive offerings from Freedom Mobile have influenced customer switching behavior.
Overall, Rogers’ mobile phone average monthly revenue per user saw a slight increase to $57.24 from $56.79 year-over-year.
As Rogers continues to navigate evolving market trends and customer preferences, the company remains committed to enhancing its service offerings and maintaining strong customer loyalty in the competitive telecommunications landscape.
