iPhone sales help Rogers' profits rise 84%

Just recently, during the Q4 Conference Call, Apple announced that it had sold 6.9 million iPhones in Q4 of 2008. Today, Canada’s leading telecommunications operator Rogers has declared an 84% jump in the 3rd quarter profits.

Rogers has reported a net income of USD 386 million, compared to USD 210 a year ago and the operator is highly crediting this to the sales of Apple’s iPhone 3G and the subscriber growth to go along with it. While two-thirds of the total iPhone sales were to existing subscribers who upgraded to the iPhone with new contracts, Rogers sold around 85,000 iPhone 3Gs to new subscribers, selling a total of around 255,000 iPhone 3Gs. The revenues of the company climbed to US$2.34 billion, a staggering 14% rise.

Speaking on the announcement, President and CEO, Ted Rogers, said:

The results for the quarter also clearly reflect the substantial and very successful investment Rogers has made to bring Apple’s iPhone 3G to more than a quarter million Canadians over a very short period of time. While the upfront cost associated with adding this many iPhone subscribers so rapidly is high, it is an investment that we expect will provide considerable returns in the form of higher revenue per customer and lower churn in subsequent periods.

All this makes me wonder what the fuss was all about.