Feb 2 (Reuters) – Canada’s Rogers Communications Inc (RCIb.TO)beat estimates for quarterly revenue and phone subscriber growth on Thursday, benefiting from higher roaming charges and promotional offers during the holiday quarter.
Rogers’ push to expand its 5G network and bundle subscriber plans has helped it win customers from rivals in a competitive market where wireless charges are among the highest in the world.
The telecom operator added 193,000 monthly bill paying wireless phone subscribers in the fourth quarter, comfortably beating FactSet estimate of 146,800. It added 164,000 users in the preceding quarter.
Rogers’ media business, which includes TV and radio properties, benefited from a jump in advertising during the holiday quarter, with revenue increasing 17% to C$606 million ($456 million).
Revenue at its core wireless business grew 7% to C$2.58 billion, in line with estimates, as it drew more users thanks to promotional offers on latest mobile phones such as Apple iPhone 14 and Samsung Galaxy Z.
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Total revenue increased 6% to C$4.17 billion in the quarter ended Dec. 31, inching past analysts’ average estimate of C$4.15 billion, according to Refinitiv data.
Rogers is in the final stages of closing the deal to acquire smaller rival Shaw Communications Inc (SJRb.TO)which will allow it to bundle its wireless prowess with Shaw’s cable services and reduce subscriber churn.
The deal, which will create Canada’s No. 2 telecom operator, needs minister Francois-Philippe Champagne’s approval for the transfer of spectrum licenses from Freedom Mobile to Quebecor’s Videotron.
(1 Canadian dollar = $0.7530)
Reporting by Yuvraj Malik in Bengaluru
Editing by Vinay Dwivedi
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