Major Canadian carrier Rogers Communications Inc. (NYSE: RCI) announced its third quarter earnings one day after the telecom removed company namesake Edward Rogers as chairman. The ousted chairman, according to Bloomberg, vowed to win back control of the company by firing five directors including new Chairman John MacDonald and four other directors who voted for his dismissal.
The company issued the following statement on Friday: “At this time, the company has not received any documentation or resolution from Mr. Rogers or the Rogers Control Trust with respect to this matter. If and when received, the company will consult with its counsel regarding the legality of this course of action.”
Following the C-suite upheaval, Rogers, the company, presented its earnings report saying COVID-19 continues to have a significant impact on its performance and the Canadian economy. While provinces generally began relaxing certain public health restrictions, the company said it remained focused on keeping its employees safe and its customers connected.
The quarterly statement revealed total revenue was stable as a result of service revenue growth in Rogers’ wireless and cable businesses, but was offset by lower media revenue and lower wireless equipment revenue. Wireless service revenue increased by three percent this quarter, mainly as a result of a larger postpaid subscriber base and higher roaming revenue. Wireless equipment revenue decreased as a result of lower device upgrades by existing subscribers and fewer devices purchased by new subscribers.
Cable revenue increased by three percent over this past quarter as a result of the movement of internet customers to higher speed and usage tiers in Rogers’ Ignite Internet™ offerings.
The company said it will invest $2.5 billion to build 5G networks across Western Canada over the next five years and commit to establishing a new $1 billion Rogers Rural and Indigenous Connectivity Fund dedicated to connecting rural, remote, and indigenous communities across Western Canada to high-speed internet and closing critical connectivity gaps faster for underserved areas. The company announced an investment of $3.3 billion in 3500 MHz band spectrum, with a target of covering 99.4 percent of the Canadian population.
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