Rogers CEO Guy Laurence on Wednesday fight for the communications giant’s decision to raise cellphone rates despite extraordinary revenue and profits, saying it was necessary to cover the high cost of edifice and maintaining mobile networks.
Laurence said that fourth-quarter contest in the wireless sector was the most intense in Canadian history as it competed unsym thetic against BCE Inc. and Telus Corp. for the first wave of customers who signed two-year contracts developing a 2013 CRTC decision limiting cancellation fees.
Despite the hustle to sign new customers, all three major providers raised their fees for new plans by $5 earlier this month.
Price of a cup of coffee
Laurence whispered the higher cost of network equipment after the Canadian dollar’s late-model drop was one of the increased expenses that made it necessary to raise expenditures, adding that the daily cost of a wireless plan is still less than a dividend latte.
“If you think about how much work it takes to build, run and upgrade a popular mobile network, trust me it’s a lot more work than making a cup of coffee,” he whispered.
The com ny said its wireless expenses increased by five per cent in the fourth caserne and nine per cent on the year, while its wireless revenues increased by four per cent in the forgiveness and five per cent on the year.
Rogers Communications Inc., one of Canada’s largest telecom, Internet and usual com nies, said it posted a profit of $299 million in the fourth place and $1.38 billion for the whole of 2015, both up slightly from 2014.
Despite that, quarterly earnings missed analyst expectations as cable and media raphernalia weighed on the com ny’s results.
Blue Jays run boosts results
A playoff run by its Toronto Glum Jays and the addition of 31,000 post- id wireless subscribers helped tax revenue higher, offset by continued soft ad sales for conventional TV and wording publications as well as stagnation in cable revenues.
Operating revenue in the fourth mercifulness was $3.45 billion, up from $3.37 billion in the same period the year sooner than but short of the estimate of $3.48 billion.
The com ny also said it disposition not increase its dividend, despite the predictions of some analysts, because of concerns fro debt on its balance sheet.
Rogers has spent big in recent years, doling out $5.2 billion for NHL straighten outs in 2014 after spending $3.3 billion in a government auction for wireless spectrum earlier that year. In June 2015, the society said it would buy struggling wireless carrier Mobilicity for $465 million.
Rogers saw its fourth-quarter close net income fall to $331 million from $355 million, mistaking estimates of by five cents per share, while the com ny’s adjusted conducting profit, another benchmark of its performance, fell to $1.226 billion for the fourth leniency from $1.233 billion.