Rogers profits surge on ‘phenomenal’ iPhone sales

“Rogers Communications Inc. posted an 84 percent spike in quarterly profit on robust sales of Apple’s iPhone, but it lowered the full-year outlook for its wireless unit to reflect higher costs of activating new customers,” Wojtek Dabrowski and Scott Anderson report for Reuters.

“Third-quarter profit rose to C$495 million, or 78 Canadian cents per share, from C$269 million, or 42 Canadian cents, in the same period a year earlier,” Dabrowski and Anderson report. “Total revenue climbed to C$2.98 billion, up from C$2.61 billion.”

“Rogers said it added 191,000 post-paid wireless subscribers in the quarter. Post-paid users are those who pay monthly bills and often sign up for multiyear contracts. They are considered more lucrative than prepaid subscribers, who pay for a predetermined amount of service,” Dabrowski and Anderson report.

“The company also said it activated about 255,000 iPhones during the quarter, with about one-third of the activations being new subscribers,” Dabrowski and Anderson report. “‘The number of activations … is simply phenomenal,’ Nadir Mohamed, the company’s chief operating officer, told analysts.”

Full article here.

[Thanks to MacDailyNews Reader “Opportun” for the heads up.]

13 Comments

  1. What freaks me out is the big petition against Rogers for ruining the iPhone thanks to the horrible data pricing. All the talk about how the iPhone was going to fail in Canada because of it.

    Looks like that dried up once the device was available. I see so many iPhones on Toronto streets it’s crazy. But like Wandering Joe says, good for Rogers…for Canadians tho….maybe not so much. Our data rates are very expensive in comparison to other parts of the world, not just Rogers, Bell and Telus too.

  2. If all your big providers are expensive, maybe that should tell you something. Maybe, just maybe, it’s more expensive to provide cell phone service in Canada because of population density, government policy, or innumerable other reasons? But I bet it makes you feel better to just blame those “evil” telcos, no?

  3. @ the person responding to my initial post

    It doesn’t make me feel better to bash “evil” telcos. I wasn’t bashing at all. I was stating a fact that data rates are higher in Canada.

    Of course there are lots factors determining why the rates are so high but one of them surely is “what the market will bear.” With the stunning success of the iPhone there’s less of an incentive to bring down prices. If the iPhone failed miserably in Canada (after it did so well in the States) the industry as a whole may have looked at their rates and brought them down. But hey…I have my iPhone and I love it.

  4. @ Big Al

    Yep. More data that we didn’t need.

    AT&T;said that the average iPhone customer used approximately 100 MBs per month, which was the basis for Rogers pricing.

    Rogers upped the data package to 6 GBs per month on introduction. Heard that the actually DATA USAGE is less than 150 MBs/month.

    Turns out the US is getting a lot for nothing.

    And Rogers doesn’t charge me for incoming text messages, unlike most others, including AT&T;

  5. Hmmmm!!! Just maybe its really true. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

    Apple is going to save the world.

    From Microsoft.
    By single handedly rising the stock market in both USA and Canada.
    Which will rise the world market.
    Which makes people buy more stock.
    Which ends the recession.

    there you go. Apple is single-handedly saving the world from its financial mess.

    The down side? Apple stock tanks and now everyone blames Apple for not fixing their problem.

    Whirlpool sues Apple for using its “white” color on its MacBooks and for decreasing sales.

    Ford sues Apple for allowing it to “Sync” with Microsoft…. and dropping sales.

    etc.

    Just a thought.
    en….. er nostradomas the second.

  6. I agree completely with the poster mentioning the data usage. I absolutely had to have the 6gb data package. I am using on average 100mb per month. It is nowhere near what people in the states claimed they used. I actually use all of the services as well.

  7. Rogers knew beforehand that 6 gigs of data looked amazing for $30 bucks but was a red herring – its actually difficult to use more than about 200 mb a month, UNLESS you are d/loading music, but not from iTunes, it ONLY works with wifi.
    What a scam! If 6 gigs is $30, then pro-rated, I should be paying exactly ONE DOLLAR for 200 mb.

    Apple are partly to blame, because they wanted big data numbers to differentiate the iPhone, but its mostly the EVIL telco Rogers.

    Rogers – scum of the planet.

  8. @ Derek in Winnipeg

    AT&T;reported that the average iPhone customer uses 100 MBs per month. So in effect, we are paying for something that we don’t use that much.

    However, everytime somebody sends me a text message, my account gets charged. Your’s doesn’t.

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