Despite a lower profit line, Rogers Communications beat earnings estimates on higher smartphone activations.

Rogers, which secures the bulk of its revenue and earnings from wireless phones, posted first quarter earnings of $335 million, against a profit of $368 million in 2010.

Stripping out one-time charges, Rogers saw its adjusted profit come to 76 cents per-share, exceeding Bay Street estimates.

Overall revenue was up 4% to $2.98 billion.

Rogers saw its media revenue from broadcast and print rise 17% to $339 million, on the strength of a recovering ad market.

At the same time, operating costs for Rogers’ media arm – due in part to expensive NBA and NFL programming rights – jumped by 22% to $349 million, producing an operating loss for the division.

Wireless data revenue remains Rogers’ biggest money-earner, however, as the media group continued to sign up smartphone customers during the latest quarter.

That gain came despite competitive pressures from Wind Mobile, Mobilicity and other new market entrants.