Rogers Experience Quarter 2 Earnings Drop

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Rogers Communications saw its second-quarter earnings drop almost 90 per cent due to foreign-exchanges losses. Despite major American counterpart wireless firms experiencing gains in the second quarter, Rogers did not. The company said it made $5.5 million in the quarter, after making a profit of $54.1 million in the same quarter of last year.

Rogers said it recorded a $76.8-million foreign-exchange loss in the quarter due to weakness in the Canadian dollar. In the same quarter of last year, Rogers reported $116.2 million foreign-exchange gain. Some analyst view this loss due to the exchange market as a proper litmus test to determine the health of a particular firm. Many Canadian firms argue that an appreciation of the Canadian currency, with respect to the American dollar hinders, their ability to compete. Others suggest that firms who need a weak Canadian dollar to compete with other firms shouldn't be there in the market in the first place.

Rogers' operating revenue rose 14.5 per cent to $1.34 billion, from $1.17 billion last year. Of the revenue increase, the company's wireless division contributed $123.4 million, cable television added $40.4 million, and its media division, which includes radio, television channels and publishing, added $11.2 million.

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