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Rogers Communications Inc on Wednesday pulled its 2020 forecast and reported lower-than-expected quarterly profit due to a drop in ad sales and weaker demand for its wireless services as a result of the coronavirus outbreak.

Revenue from the telecom operator’s wireless unit, its largest business, slipped 2 per cent to $2.08 billion as subscriber activity slowed during the pandemic and roaming sales fell.

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Rogers, which faces stiff competition from rivals BCE Corp and Telus Corp, generated average revenue per user of $52.85 from its wireless services, compared with $54.13, a year earlier.

Rogers said the suspension of major sports matches in March and lower ad sales led to a 12 per cent fall in first-quarter revenue in its media segment, which includes television and radio broadcasting, specialty channels and digital media.

The telecom operator’s revenue for first quarter ended March 31 fell 5 per cent to $3.42 billion due to lower subscriber activity during the pandemic.

Analysts were expecting revenue of $3.53 billion in the quarter, according to IBES data from Refinitiv.

Net income fell to $352 million, or 68 cents per share, from $391 million, or 76 cents per share, a year earlier.

On an adjusted basis, Rogers earned $0.71 per share, missing the average analyst average estimate of $0.80.

© Thomson Reuters 2020