TORONTO - While a loss on foreign exchange saw Rogers Communications' net income dip 90% to $5.5 million in the second quarter of 2004, compared to Q2 2003, the company's media division continues to earn, the company announced yesterday.
Rogers Media contains Rogers' radio and television broadcasting operations, as well as its consumer and trade publishing operations, and its televised home shopping service. The broadcasting group includes 43 radio stations, two multicultural television stations in Ontario (OMNI.1 and OMNI.2), an 80% interest in Rogers Sportsnet and The Shopping Channel, as well as minority interests in several Canadian specialty television services, such as Viewers Choice Canada and Outdoor Life Network (OLN), among others.
Total Rogers Media operating revenue came in at $230.9 million in the second quarter, ended June 30, 2004, a 5.1% increase over the same time last year. Radio earned $55.9 million of that revenue in the quarter (a 22% increase) and TV took in $50.5 million (a 14% jump). The Shopping Channel counted $54.7 million in revenue (8.3% better)
Radio's operating profit jumped 46.2% to $19 million in the quarter while TV's stayed flat at $10 million. TSC rose by 38.2% to $4.7 million in OP.
The increase in radio's revenues from 2003 reflects the success of the Jack-FM concept in several of our markets as well as strong results at 680 News in Toronto. Radio increased spending on sales and marketing by 15.4% in the second quarter as compared to the corresponding period in 2003 by promoting the Jack-FM stations and by reinforcing its positioning in the Toronto market with several initiatives, says the press release.
The $6.2 million increase in television's revenues in the three months ended June 30, 2004 was primarily due to the Dome Productions Partnership acquired in 2004, as Television, in general, experienced softness with respect to advertising revenues, says the release (Rogers entered into a 50-50 partnership with CTV on Dome Productions, which primarily provides mobile production services to broadcasters). Sportsnet subscriber revenues earned from cable and satellite carriers remained relatively flat year-over-year. Overall, the revenue increases at television were exceeded by the increased operating expenses, primarily related to programming costs, said the release.
For the full release, go to www.rogers.com.
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