By Adriano Marchese

Rogers Communications on Wednesday reported a 50% decline in profit in the first quarter as depreciation, amortization and higher financing costs weighed on performance, while revenue growth missed targets.

The Canadian telecom giant posted net income of 256 million Canadian dollars ($187.4 million), or C$0.46 a share, down virtually by half from C$511 million, or C$1.00 a share, a year ago.

The decline was largely due to higher depreciation and amortization of the assets Rogers acquired through its acquisition of Shaw Telecommunications, as well as higher finance costs.

Adjusted earnings were C$0.99 a share. According to FactSet, analysts were expecting C$0.98 a share.

Total revenue rose to C$4.90 billion from C$3.84 billion, shy of analysts expectations of a rise to C$4.92 billion. The rise in the quarter was driven by revenue growth in its cable and wireless businesses, which saw revenues grow 94% and 9% thanks to the contribution from the Shaw Communications acquisition.

Meanwhile, media revenue decreased by 5% this quarter primarily due to lower subscriber revenue, including due to a negotiation of certain content rates last year.

In the quarter, the company said it logged 124,000 mobile phone and retail net additions to its network. This was made up of postpaid mobile phone net addition of 98,000, up 3,000, while retain internet additions were 26,000, up 12,000.

Write to Adriano Marchese at

(END) Dow Jones Newswires

04-24-24 0748ET