Rogers Communications Inc. made 10% more revenue and saw profits jump by more than a third in the three months to the end of June, a financial reporting period that ended just before a devastating outage destroy the company’s telecommunications networks across the country.
The telecommunications giant released quarterly results before stock markets opened on Wednesday, and the numbers painted a picture of a company whose business was booming.
Wireless service revenue rose 11% to just under $1.8 billion “primarily due to higher roaming revenue coupled with a significant increase in travel,” the company said. Rogers added about 122,000 new wireless customers in the quarter, about double the number it added a year ago.
Additionally, cable revenue rose 3% to just over $1.03 billion, “primarily due to service pricing changes,” the company said.
The media division saw the biggest increase of all, with revenue up 21% to $659 million from the same period a year ago. The main reason for the increase was the Toronto Blue Jays baseball team, which is owned by Rogers, being able to play home games again and televise them from the Rogers Center in Toronto.
This time last year, the Blue Jays were playing home games in the United States due to COVID travel restrictions.
Across all business units, Rogers took in just over $3.8 billion in the quarter, an 8% increase over last year, and posted a profit of $409 million, a 35% increase from a year ago.
The cost of the breakdown has not yet been taken into account
However, all of this financial performance came before July 8, when the company’s network was wiped out by a botched upgrade that caused cascading failures across the country.
Rogers estimates that it plans to give around $150 million in rebates to customers as compensation for the outage, and is committed to spending billions in capital investments to upgrade its systems to ensure that it doesn’t happen again.
“The investments we’re making to improve the reliability of our networks are the right things to do, and it won’t impact our prices in this highly competitive market,” a company spokesperson told CBC. News this week.
Rogers also officially extended its self-imposed deadline to complete its merger with Shaw until the end of the year. When the merger was first proposed in early 2021, both parties expected it to be complete by now, but regulatory delays led them to push the deadline back to July 31.
On Wednesday, the company revealed that it does not expect to be able to formalize the deal before the end of this year.