By Kritika Lamba
(Reuters) – Rogers Communications posted lower-than-expected quarterly subscriber additions on Wednesday, as the Canadian wireless giant grapples with strict immigration practices.
Canada’s recent policy changes and a crackdown on immigration have had an impact on demand, as carriers have relied on newcomers to expand its customer base.
Rogers posted 11,000 monthly bill-paying wireless phone subscribers for the first quarter, whereas analysts at Visible Alpha had expected an addition of 17,390 subscribers.
Chief Executive Tony Staffieri said the company’s results were hurt by reduced immigration as well as lower travel to the United States.
Amid a slower macroeconomic environment, Rogers will have “little to no impact” from U.S. tariffs, as most of the company’s suppliers are within Canada, Staffieri added on a post-earnings call.
“Rogers’ earnings reveal the strain of defending market share in a saturated, slow-growth environment where it is entrenched in a margin-eroding price war that’s cannibalizing its own growth potential and tightened immigration has quietly become the telecom sector’s demand shock,” said Michael Ashley Schulman, analyst at Running Point.
Rogers faces robust competition from Telus and BCE, which made people opt for cheaper alternatives.
Amid the intensifying competition Rogers signed a 12-year agreement worth C$11 billion ($7.68 billion) earlier this month to secure media rights for the National Hockey League (NHL) games across all platforms in Canada.
Rogers has been aggressively investing into Canadian sports over the past few years to capitalize on its strong viewership and loyal fanbase amid a broader decline in traditional media.
The wireless segment, which accounts for half of Rogers’ revenue, collected C$2.54 billion in the first quarter, compared with estimates of C$2.57 billion, according to data compiled by LSEG.
The company posted revenue of C$4.98 billion, in line with estimates.
(Reporting by Kritika Lamba in Bengaluru; Editing by Maju Samuel)
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