Rogers Communications Inc misses expectations
Rogers added 131,000 postpaid wireless subscribers in the fourth quarter of 2019, and on the earnings call with analysts chief executive Joe Natale said he was happy about a faster-than-anticipated uptake of the Rogers Infinite unlimited data plans. But with 1.4 million people now on those unlimited plans, Rogers reported a one per cent decline in services revenue, largely because they’re collecting less in data-overage fees. In 2019 Rogers had net income of $2.04 billion on overall revenues of $15.07 billion. For 2020, Rogers chief financial officer Tony Staffieri said they’re expecting both revenue and earnings to be flat overall. Natale said that as Rogers is building out its 5G network it needs regulatory certainty, and if they’re facing “punitive regulation” it could stall capital investment, especially on wireless service in rural areas. In his mandate letter at the end of 2019, Prime Minister Justin Trudeau directed Innovation, Science and Industry Minister Navdeep Bains to achieve a 25 per cent reduction in cellphone costs for consumers, or the government should be more heavy-handed with implementing MVNOs.