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Soaring costs push Rogers losses higher

Published on February 22, 2002
Ottawa Business Journal
Published on January 23, 2011

An increase in fixed charges during the fourth quarter and the fiscal year pushed losses higher at Rogers Communications Inc. in results reported Friday.

Topics :
Rogers Wireless Communications

The Toronto-based media and technology conglomerate posted a Q4 loss of $176 million or 90 cents a share, up from losses of $21 million or 20 cents per share a year earlier.

Analysts were expecting losses to come in much lower at 49 cents per share.

Revenue in the quarter ended Dec. 31 totalled $1 billion, as sales rose 10.3 per cent in the cable division, increased 6.2 per cent in the media unit, and grew 4.1 per cent in the wireless business.

Fixed charges also increased, however, with depreciation and amortization costs rising 25 per cent and interest charges climbing 35 per cent.

For fiscal 2001, Rogers posted a loss of $434 million or $2.41 per share, compared to a 2000 profit of $141 million or 44 cents per share.

Total revenues climbed 8.3 per cent in 2001 to $3.9 billion, with sales growth of 11 per cent in cable, seven per cent in wireless, and six per cent in media. But that growth was offset by a 26-per cent rise in depreciation and amortization costs and 20-per cent higher interest charges.

In figures released separately, Rogers Wireless Communications posted a Q4 loss of $63.5 million or 46 cents a share, up 8.7 per cent from the year-earlier loss of $58.4 million or 48 cents per share.

Rogers business divisions include cable and digital television, Internet service, mobile phone service and other wireless communications, and a series of specialty publications.

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