Rogers meets revenue estimates, adds more postpaid wireless subscribers than expected [Globe and Mail, The (Toronto, Canada)]
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Source: Globe and Mail, The
predicted would be an underwhelming quarter for the country’s largest telecom companies. The Toronto-based communications and entertainment company also said it was removing the 2-per-cent discount on dividend reinvestment plan (DRIP) shares, suggesting a shift in capital allocation strategy as the company aims to pay down debt. The company also made progress toward reducing debt leverage by recently finalizing a $7-billion network deal. Rogers added 11,000 net postpaid wireless phone subscribers in the first quarter, above analyst consensus of 7,000. This was down 87 per cent from last year, partly due to slowing immigration following federal target cuts and fewer student visas. The company added 23,000 prepaid phone subscribers, beating consensus of 21,000 adds. Historically, Rogers has won the greatest number of new Canadian subscribers, making it particularly vulnerable to the slowing population growth. Despite this, some analysts still expect Rogers to lead its rivals in subs
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