Earlier last month Rogers reported a loss of $54.1-million or 44 cents a share compared with a loss of $10.6-million, or 9 cents a share for the same period last year. Analysts estimated a loss of 32 cents a share, according to market research firm Thomson Financial/First Call.

Rogers Wireless did report a 8.3 percent increase in sales to $378-million from $349-million last year as well as an increase in the number of subscribers, just over 3 million. However, the average revenue per subscriber fell seven percent to $41.88 from $44.94 during the same quarter last year.

The company did see a reduction in the churn rate, falling to 2.25 percent from 2.27 percent.

Overall, analysts are concerned about the company’s spiraling costs. Capital expenditures, including network and call-center costs, rose to $160.6-million from $70.5-million a year earlier.

In an effort to regain investors confidence, Rogers Wireless recently offered $770-million in discount securities to investors. The company said that it had placed a private placement in an aggregated amount of $770-million of 9.625 percent Senior Notes, due May 1, 2001. The securities were being priced as a ‘slight discount’ to yield 9.70 percent.

The Wall Street Journal reported that in a conference call to investors the company stressed that there is still room from future growth in the Canadian market as the wireless penetration stands at 28 percent versus 40 percent in the U.S.

The company said that net proceeds from the offering will be used to repay all outstanding advances under its bank credit facility, to fund capital expenditures, and for general corporate purposes.

For more information: http://www.rogers.com/english/corporate/press/press_releases.html