It seems like Canada’s largest carrier continues to roll, with a strong Q2 increase in revenue and profit. The Toronto-based telecom increased revenue by 16% to 2.5 billion CDN, and consolidated operating profit also improved by 20% to 898 million CDN. Interestingly, the company posted a net lost for the quarter, due to the introduction of a cash-settlement feature for stock options, which resulted in a one-time C$452 million non-cash charge to earnings (talk about taking one in the bread basket).
Of course, Rogers is still nowhere near the size of its American compatriots, but Ted Rogers has to be happy with what he’s seeing. Maybe he can use his company’s growth as leverage to get the iPhone above the 49th parallel sooner rather than later.
– On a GAAP basis, the net loss was C$56 million or 9 Canadian cents a share, compared with net income of C$279 million or 44 Canadian cents a year earlier.
– Adjusted (non-GAAP) earnings were C$277 million or 43 Canadian cents a share versus C$280 million or 44 Canadian cents a year earlier.
– The Thomson First Call mean earnings estimate for the latest quarter was 37 Canadian cents a share.
– Annual dividend on common shares jumped to 50 Canadian cents from 16 Canadian cents to reflect the board’s “continued confidence” in its growth strategies.
– The cash-settlement feature for outstanding employee stock options resulted in a charge in the latest quarter but will mitigate dilution and has a related future income tax benefit of C$160 million.