Canada’s Rogers Communications on Thursday missed market expectations for third-quarter wireless subscriber additions, hit by cautious spending on its mobile plans and stiff competition in the telecom space.
The company added 101,000 monthly bill-paying wireless phone subscribers in the reported quarter, compared with estimates of 129,040, according to analysts polled by Visible Alpha.
Rogers also announced that it has entered into a C$7 billion equity financing deal with an investor and will use the proceeds to pay down debt.
Rogers has been seeing weaker spending on its mobile plans as consumers cut back on purchases amid high inflation levels, choosing instead to switch to cheaper plans.
Moreover, stiff competition from the other two major telecom firms in Canada, BCE and Telus have put pressure on Rogers’ subscriber additions and triggered a pricing shift in the market.
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On an adjusted basis, it earned C$1.42 per share, compared with estimates of C$1.35 per share.
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