Tuesday, June 1, 2010

Another Cable Increase - Yahoo!

So I get a letter from Rogers today:

"...(Rogers) costs went up 10% more than last year... Rogers will absorb much of these increases..."

This means prices are going up.

Then I looked back at the Q1 reporting to the street:

"Our first quarter results reflect continued top line growth combined with good traction on cost controls. We delivered double-digit adjusted operating profit growth, margin expansion at all three segments, and a 27% increase in free cash flow,"

This means that shareholders should be happy.

As a customer, this is another price increase with little obvious payoff beyond a new online portal where I can watch back episodes of "Chips".

As a shareholder, I'm confident that inertia will stop customer from churning and going to more affordable alternatives like torrents and P2P sharing.

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