Friday, July 25, 2014

Rogers's wireless issues depress Q2 results

Rogers Communications Inc. owns and publishes many of Canada's largests circulation and most popular magazines, but you'd hardly know it in light of reporting on the parent company's wireless woes. For instance, the Financial Post reports that Rogers's profit dropped 24% in 2nd quarter growth and the company is facing weak revenue growth and an increasing pressure to pay down the company's roughly $15 billion of adjusted net debt. Yet nowhere is there any reference to its publishing portfolio, which indicates its relatively small contribution to either profit or problems.
Adjusted operating profit in wireless came in at $843-million, up slightly from $821-million a year ago on lower revenue resulting from reductions in roaming rates in 2013 and simplified pricing plans that took effect over the past year.
According to the company's own release, Media in the 2nd quarter accounted for $475 million, up $5 million from the same period a year ago. However, profit, $54 million, was down $10 million from Q2 2013. There was a great deal of discussion about hockey rights on TV, but only a single paragraph that related to magazines, principally a reference to the expansion of Next Issue Canada, the one-price subscription service that Rogers operates in partnership with major U.S. magazine publishers. 



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