UPDATE 3-Rogers posts wireless growth, but iPhone, cable weak

Tue Jan 6, 2009 9:14pm GMT
 
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*Rogers says added 199,000 wireless subscribers

*Rogers says weak cable additions reflect soft economy

*Stock drops 5.9 percent (Adds details, analyst's comments, closing stock price)

TORONTO, Jan 6 (Reuters) - Shares of telecom and media group Rogers Communications Inc (RCIb.TO) fell almost 6 percent on Tuesday after the company posted slumping iPhone sales and flat postpaid wireless subscriber growth in the fourth quarter and said its cable results are being hurt by a tough economy.

Rogers, which owns Canada's biggest wireless carrier, said it added 199,000 net wireless subscribers in the traditionally strong quarter ended Dec. 31, up from 183,000 a year earlier.

The company said it sold about 130,000 of Apple Inc's (AAPL.O) iPhones in the quarter. Jonathan Allen, an analyst at RBC Dominion Securities, said this was a "sharp drop" from 255,000 in the third quarter.

Rogers said that of the total wireless subscribers it added, 158,000 were in the key postpaid market, matching year-earlier results.

Postpaid customers, who pay their bills on a monthly basis and often sign up for multiyear contracts, are seen as more lucrative than prepaid users, who pay in advance for a preset amount of service.

"Overall, we think the wireless result met the market's expectations," National Bank Financial analyst Greg MacDonald wrote in a note to clients.  Continued...

 

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