Rogers Communications Inc. saw its profit decrease by 73 per cent to $109 million in its most recent quarter when it closed its deal to buy Shaw Communications Inc.

The Toronto-based telecommunications company said its second-quarter profit compared with a net income of $409 million in the same period last year. The profit amounted to diluted earnings per share of 20 cents for the period ending June 30, down from 76 cents during its previous second quarter.

Rogers said the significant drop in net income and diluted earnings per share reflects an ongoing increase of approximately $500 million in quarterly depreciation and amortization from the assets acquired in its $26-billion merger with Shaw, which closed in April.

The two companies got final government approval for the deal to move forward in late March after agreeing to several terms including selling Shaw's wireless business, Freedom Mobile, to Quebec-based Videotron Ltd., a subsidiary of Quebecor Inc.

"We delivered strong results in the second quarter and continued to demonstrate solid momentum in our core businesses," said Rogers president and CEO Tony Staffieri in a press release.

"We upgraded our financial guidance for the year and I am pleased to share the integration with Shaw is tracking ahead of plan. We're proud that more Canadians continue to choose Rogers as we invest in our customers and our networks to deliver long-term growth."

On an adjusted basis, its net income totalled $544 million, a 17 per cent increase from $463 million during the prior second quarter, while its adjusted diluted earnings per share moved from 86 cents to $1.02 per share.

Analysts on average had expected a profit of $1.02 per share on a non-adjusted basis, according to estimates compiled by financial markets data firm Refinitiv.

Revenue for the period grew 30 per cent to $5 billion in the most recent quarter, up from $3.9 billion in the previous second quarter.

Rogers' revenue was fuelled by the company adding 170,000 net postpaid mobile phone subscribers, up 39 per cent from 122,000 last year, which it said was a result of sales execution and customer satisfaction in a growing Canadian market.

The company noted it also introduced new 5G plans starting at $55 per month.

It saw a seven per cent bump in wireless service revenue in the quarter, which was primarily a result of growth in mobile phone subscribers, the addition of Shaw customers following the merger, and higher roaming revenue associated with increased travel.

Rogers' monthly churn for net postpaid mobile phone subscribers was 0.87 per cent, up from 0.68 per cent during its previous second quarter.

Rogers' mobile phone average monthly revenue per user was $56.79, marking a 3.5 per cent decrease from the second quarter of the prior year.

It attributed the drop to an increase in its mix of lower cost plans following the acquisition of Shaw.

This report by The Canadian Press was first published July 26, 2023.​