Rogers forecasts sales, profit growth

Rogers Communications Inc. late Monday predicted sales growth of about 9 per cent this year and an operating profit increase of about 11 per cent, based on the mid-point of estimated ranges.

Toronto-based Rogers — whose three divisions include cable television, mobile phones and media — said 2003 sales could reach a range of $4.48-billion to $4.56-billion, up from an estimated range of $4.08-billion to $4.21-billion in 2002.

Operating profit, before management fees, could reach $1.27-billion to $1.31-billion, Rogers said, up from an estimated range of $1.14-billion to $1.19-billion in 2002.

Rogers also issued subscriber results for the fourth quarter just ended and plans to issue complete end-of-year financial results Feb. 14.

Rogers' 2003 estimates were in line with those of financial analysts on Bay Street. The numbers were issued after markets closed. Rogers Communications stock closed at $15.29, up 29 cents, on the Toronto Stock Exchange. Shares of Rogers Wireless Communications Inc. rose 46 cents to $14.60.

According to the 2003 estimates, Rogers Wireless Inc. will account for half of the sales growth and 60 per cent of the operating profit growth.

Rogers Wireless, Canada's second-largest mobile phone company by subscribers, hopes to add between 350,000 and 425,000 net subscribers. In 2002, the company recorded 364,000 net new subscribers, including 147,000 in the fourth quarter, Rogers said, ending 2002 with 3.4 million.

The domestic wireless industry has turned its focus in the past year from subscriber growth to profits. According to estimates, Rogers Wireless will increase its operating profit margin by one percentage point to 30 per cent in 2003.

Rogers as a whole plans to reduce capital spending in 2003, similar to others in the cable and telecom businesses. Rogers said capital spending in 2003 will reach a range of $900-million to $950-million, down from a range of $1.2-billion to $1.25-billion in 2002.

Cable should account for $5 of every $9 spent on capital projects.

Subscribers to basic cable are expected to hold steady or decline 1 per cent, similar to the 2002 result of a 0.7-per-cent decline.

For digital cable, Rogers said it could add between 90,000 and 110,000 households in 2003, down from 129,000 in 2002.

Rogers said it hopes to win between 110,000 and 130,000 high-speed Internet users in 2003, down from 160,000 in 2002.