Rogers has released numbers on another ‘beat the street’ quarter. With confidence in continued future success, Rogers also announced a 2-for-1 stock split and an increase in the dividend.
Ted Rogers was quoted as saying:
While we have much work and investment in front of us and competition continues to be intense, the solid operating results from our businesses are combining to drive increasing levels of cash flow and are positioning us increasingly well for continued success.
Even basic cable subscribers increased in the quarter, perhaps indicating that Rogers’ residential phone offering may be helping to retain or even attract cable subscribers, a phenomena that we have observed with Videotron. With MTS so successful in its IP-TV product in Winnipeg, it begs the question of when will Bell respond?
The wireless results indicate that Rogers has been preparing for wireless number portability in the new year, through targeted programs to attract higher revenue customers on longer term contracts.
Retention spending, on both an absolute and a per subscriber basis, is expected to grow as wireless market penetration in Canada deepens and wireless number portability (“WNP”) becomes available in March 2007.
It sounds like there are more handset offers on the way as portability approaches.
As Ted Rogers likes to say as he closes off his speeches, the best is yet to come.
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