Rogers Communications has reported lower year-over-year profits in the first quarter, citing among other reasons higher restructuring costs and an increase in the adjusted operating loss of its traditional media business.
The Toronto-base telecommunications giant said net income in the three months ended March 31 was $248 million or 48 cents per share, down from $255 million or 50 cents per share in the same 2015 period.
Adjusted net income, which excludes certain one-time items, was $263 million or 51 cents per share, down from $275 million or 53 cents in the prior-year period.
Revenue was $3.245 billion, up two per cent from $3.175 billion, reflecting growth of five per cent in its wireless operations and two per cent in business solutions. That was offset by a decline of two per cent in its cable business and three per cent in media.
Reporting after markets closed, Rogers said its lower consolidated adjusted operating profit largely reflected an increase in the adjusted operating loss of its traditional media businesses, which are facing pressure from a changing advertising landscape.
Hit by job cuts
Net income was also impacted by higher restructuring costs for the company, which announced job cuts in the quarter affecting conventional TV, radio and publishing, as well as some back-office positions to help alleviate some of the pressure on its media business.
Rogers said it posted its best first-quarter wireless postpaid churn in more than five years, thanks among other things to "improvements to the customer experience," president and CEO Guy Laurence said in a statement.
"Overall, we delivered another quarter of revenue growth, along with continued improvements in key subscriber metrics, despite an intensely competitive quarter. With momentum in wireless, continued growth in Internet, and a clear path forward for our TV and media businesses, we're well positioned to achieve our 2016 financial guidance."
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