23 October 2000

Canadian broadcasting and telecoms network Rogers Communications, has posted a third quarter loss of C$20.6 million, excluding a one-off gain.

The Toronto-based group, one of Canada’s largest media operators, saw its stock dive 10% to its lowest level since January. Rogers also reported an 80% decrease in net income to C$156.9m (US$103.8m), adding to losses in the first and second quarters if special items are excluded.

According to analysts, the steep decline in stock value was triggered by concerns over Rogers’ ability to deliver a consistent high-speed Internet service. The group conceded that it suffered a net subscriber loss of 3,100 during Q3.

Rogers stock prices were also affected adversely by rumors that it is poised to acquire major Canadian newspaper publisher Torstar Corporation, rumors that Rogers has not denied.

News source: Wall Street Journal