At the wireless division, revenues edged up 2 percent to CAD 1.83 billion, while adjusted operating profit fell 5 percent from a year earlier to CAD 670 million, hurt by tough competition and extra costs to launch the new iPhone. After a record 791,000 smartphone activations in the quarter, Rogers said 56 percent of its postpaid customers had a smartphone at year-end. The overall customer base rose by a net 47,000 in the quarter to 9.34 million. ARPU fell 4 percent from a year ago to CAD 58.82 as higher data use was unable to offset price pressure in voice.
At the cable activities, revenues were unchanged compared to a year ago at CAD 953 million, as price increases offset a weaker enterprise market. Adjusted operating profit from cable rose 14 percent to CAD 416 million thanks to cost-cutting efforts. The operator added a net 27,000 revenue-generating units in the quarter, including 25,000 in broadband, to finish the year at 5.142 million RGUs. With 77 percent of customers now taking digital services, Rogers said it will invest more this year and next to convert the remaining households to digital.
The company increased capex in 2011 by 16 percent to CAD 2.13 billion and a similar amount is forecast for 2012. Free cash flow is expected to be flat to slightly higher this year, compared to CAD 1.95 billion in 2011. Rogers also forecast a small increase in revenues at all its divisions this year, while adjusted operating profit for the group should grow to CAD 4.73-4.92 billion from CAD 4.72 billion in 2011. The company also increased its annual dividend by 11 percent to CAD 1.58 per share and renewed its share buyback programme with another CAD 1 billion over the next 12 months.