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Rogers profits jumped 35% in the three months prior to the recent outage – CBC News

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Rogers Communications Inc. earned 10 per cent more revenue and saw its profits jump by more than a third in the three months leading to the end of June, a financial reporting period that ended just before a devastating outage wiped out the company’s telecom networks across the country.

The telecom giant posted quarterly results before stock markets opened on Wednesday, and the numbers painted a picture of a company whose business was booming.

Wireless service revenue increased by 11 per cent to just shy of $1.8 billion “primarily as a result of higher roaming revenue associated with significantly increased travel,” the company said. Rogers added roughly 122,000 new wireless customers during the quarter, roughly twice the number it added a year ago.

As well, cable revenues increased by 3 per cent to just over $1.03 billion, “primarily as a result of service pricing changes,” the company said.

The media division saw the biggest boost of all, with revenues increasing by 21 per cent to $659 million compared to the same period a year ago. The biggest reason for that uptick was the Toronto Blue Jays baseball team, which Rogers owns, being able to once again play home games and televise them from the Rogers Centre in Toronto. 

This time last year, the Blue Jays were playing home games in the United States due to COVID travel restrictions.

Across all business units, Rogers took in just over $3.8 billion during the quarter, an eight per cent increase from last year, and posted a profit of $409 million — a 35 per cent increase from a year ago.

Cost of outage yet to be accounted for

However, all of this financial performance came before July 8th, when the company’s network was wiped out by a botched upgrade that caused cascading failures across the country.

WATCH | Canadians react to massive Rogers outage: 

Major Rogers outage hits businesses, customers across Canada

19 days ago

Duration 1:46

Rogers customers were caught off guard by Friday’s massive outage involving both mobile and internet networks, which also caused widespread disruption for banks, businesses and some emergency services across Canada.

Rogers estimates that it expects to issue about $150 million in rebates to customers as compensation for the outage, and pledges to spend billions in capital investments to upgrade its systems to ensure it doesn’t happen again.

“The investments we are making to enhance the reliability of our networks are the right things to do, and it will not impact our prices in this highly competitive market,” a spokesperson with the company told CBC News this week.

Rogers also officially delayed its self-imposed deadline to finalize its merger with Shaw until the end of the year. When the merger was first proposed in early 2021, both sides expected it to be completed by now, but regulatory delays caused them to push the deadline back until July 31. 

On Wednesday, the company revealed it doesn’t expect to be able to make the deal official until the end of this year.

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Roots sees room for expansion in activewear, reports $5.2M Q2 loss and sales drop

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TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.

The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.

“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.

The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.

But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.

Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.

“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.

“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”

Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.

The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.

In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.

Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.

The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.

The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.

Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.

Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.

It will also re-evaluate its design ranks.

Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.

Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:ROOT)

The Canadian Press. All rights reserved.

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Talks on today over HandyDART strike affecting vulnerable people in Metro Vancouver

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VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.

No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.

About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.

Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.

Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.

A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.

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Transat AT reports $39.9M Q3 loss compared with $57.3M profit a year earlier

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MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.

The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.

The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.

Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.

On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.

Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:TRZ)

The Canadian Press. All rights reserved.

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