The Canadian Press

Rogers doubles first-quarter profit to $344M; bringing iPhone to Canada

Tue Apr 29, 10:14 AM

By The Canadian Press

TORONTO - Improvements in fundamentals across the board helped major telecom firm Rogers Communications Inc. (TSX:RCI.B) more than double first-quarter profits and the company said it's finally bringing Apple's long-awaited iPhone to Canada, though it didn't say when.

Rogers reported Tuesday net earnings of $344 million or 54 cents per share on a diluted basis, compared with a profit of $170 million, 26 cents per share in the year-earlier period.

That was well above an average analyst forecast for earnings of 43 cents per share in the period, according to Thomson Financial.

But perhaps the most eye-catching announcement included alongside its quarterly earnings was news of an agreement with Apple Inc. (NASDAQ:AAPL) to bring its high-tech, touch-screen smartphone to Canada.

"We're thrilled to announce that we have a deal with Apple to bring the iPhone to Canada later this year," president and chief executive Ted Rogers said in a release.

"We can't tell you any more about it right now, but stay tuned."

The company said its revenue grew 14 per cent to $2.6 billion, while the key wireless division saw postpaid net subscriber additions grow to 97,000 for the period.

Operating revenue at the wireless segment for the period ended March 31 was $1.43 billion, up 16 per cent from $1.23 billion in the prior-year period.

"While many challenges lie ahead in the coming quarters, we are well on track to deliver another year of strong growth in both subscribers and profitability, " Ted Rogers said.

"Our focus as 2008 continues to unfold remains solidly upon disciplined execution, excellence in customer service and unparalleled innovation that adds value to our customers' lives."

Shares in Rogers were up 90 cents, a little over two per cent, to $42.90 in morning trading at the Toronto Stock Exchange.

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