2°c Sunny
Winnipeg Free Press - PRINT EDITION
Rogers banks on cost-cutting, better service
ROGERS Communications Inc. will cut costs and improve customer service to deal with competition in the wireless and cable TV markets that has slowed revenue growth, CEO Nadir Mohamed said Wednesday.
"I think the competitive intensity carries on and so there's clearly going to be pressure on the top line," Mohamed said of Rogers' revenues.
"But it's very straightforward -- in the short term we're addressing the cost side of the equation," he said after the company's annual meeting in Toronto.
Shares in Rogers (TSX:RCI.B) were down almost six per cent in afternoon trading Wednesday after the company reported disappointing first-quarter financial results. The stock was down $2.24 at $36.78 per share on the Toronto Stock Exchange.
The Toronto-based company's wireless division has faced tougher competition from players big and small, while its cable division is battling fellow industry giant Bell (TSX:BCE).
Mohamed said Rogers is working to allow customers to use their devices to get the information they need for self-service when they have problems.
"To me, the best way to drive out costs is to improve our service. Where we would like to get to is customers using their own device to actually get the information they want, or service their requirement," he said.
Mohamed added Rogers, which maintained its financial guidance for 2012, will also look at trimming discretionary spending and supply costs, but did not mention any further job cuts.
Rogers laid off about 300 employees in March, with the cuts focused on management and head-office positions.
Mohamed assured analysts Tuesday the company intends to improve earnings before the end of the year and repeated the message to shareholders Wednesday.
"As I look to the balance of the year, I expect this competitive intensity to continue, and with moderating revenue growth... cost management is absolutely imperative," he told the meeting.
Rogers posted a profit of $305 million or 57 cents per diluted share on $2.95 billion in revenue for the first quarter. That compared with a profit of $335 million or 60 cents per diluted share on $2.99 billion in revenue a year ago.
-- The Canadian Press
Republished from the Winnipeg Free Press print edition April 26, 2012 B8
More Business
- Back to Top
- Return to Business
More Business
(1 of 21 articles for today)
Solar plane lands in Texas, completes 2nd leg of trip intended to boost clean energy interest
6:33 AM 0
Poll
Most Popular Business
- New owner for lumber stores
- New downtown tower could be 42 storeys tall: developers
- Housing slowdown to worsen, cost 150,000 jobs, says mortgage group
- Pollard Banknote signs ticket deal with Western Canada Lottery Corp.
- Creative industries can fuel a city's economic engine
- Temple Hotels buys hotel in Sherwood Park, Alta., for $15.15 million
- Developers to unveil plans for bold downtown tower
- Paying bills and consumer consumption hurting Canadians' ability to save: study
- Manitoba Movers
- Microsoft reveals Xbox One as all-in-1 entertainment console, last of 3 major systems unveiled
- Mounties say crooks passing fake polymer bank notes in British Columbia
- New owner for lumber stores
- Holiday pump jump debated
- 2 men arrested in killing of Las Vegas teen who refused to give up his iPad
- New downtown tower could be 42 storeys tall: developers
- Creative industries can fuel a city's economic engine
- Microsoft reveals Xbox One as all-in-1 entertainment console, last of 3 major systems unveiled
- Bridging the gap
- Housing slowdown to worsen, cost 150,000 jobs, says mortgage group
- Apple uses companies outside US to avoid paying billions in taxes, Senate inquiry finds
- Target opens its first Manitoba stores Tuesday
- New structure to be king of downtown?
- Transcona transformation
- Target opens Manitoba stores
- Mounties say crooks passing fake polymer bank notes in British Columbia
- City to get a touch of glass
- Canad Inns property has personal meaning for owner
- New owner for lumber stores
- Holiday pump jump debated
- Local boy leads Great-West
- New owner for lumber stores
- New downtown tower could be 42 storeys tall: developers
- Developers to unveil plans for bold downtown tower
- There are lots of I's in 'team'
- Canadian telecom company Telus signs deal to buy Mobilicity for $373 million
- Bridging the gap
- Manitoba Movers
- Creative industries can fuel a city's economic engine
- Housing slowdown to worsen, cost 150,000 jobs, says mortgage group
- Pollard Banknote signs ticket deal with Western Canada Lottery Corp.
- New owner for lumber stores
- Ex-'Pegger seeks to grow local businesses
- Developers to unveil plans for bold downtown tower
- Bridging the gap
- Late deal in workplace sex-harassment case
- There are lots of I's in 'team'
- More than a new boss
- New downtown tower could be 42 storeys tall: developers
- Diversification spurs Exchange Income's growth
- Viterra plans $20 million capacity upgrade at four Saskatchewan grain terminals
- Transcona transformation
- New owner for lumber stores
- New structure to be king of downtown?
- CEO, execs terminated at TCIG
- Target opens its first Manitoba stores Tuesday
- Canad Inns property has personal meaning for owner
- Winnipeg's got the REIT stuff
- Older and jobless? Resource on hand
- Winnipeg Boeing plant set to expand
- Local boy leads Great-West
Ads by Google
You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.
Have Your Say
New to commenting? Check out our Frequently Asked Questions.
The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.