Rogers Communications Inc.NYSE
Rogers Communications: Undervalued Canadian Large-Cap Cable Co. With 40% Upside
Nilanjan Roy • 41 Comments
Nilanjan Roy • 41 Comments
Tue, Nov. 1, 7:33 PM
- Rogers Communications (NYSE:RCI) has priced a $500M offering of senior debt.
- The company's offering that amount in 2.9% senior notes due 2026; net proceeds of about $487M will be used to repay outstanding debt and for general purposes.
- That offering will close on Nov. 4, with the securities guaranteed by subsidiary Rogers Communications Canada.
- At last report, Rogers had total debt of $12.7B and total cash of $84.4M.
Thu, Oct. 20, 1:05 PM
Tue, Oct. 18, 7:46 PM
- The surprising exit of Guy Laurence from the helm of Rogers Communications (RCI +0.6%) -- along with earnings released a few days early -- has analysts abuzz about prospects at the Canadian telecom.
- RBC Capital and Scotiabank reiterated Outperform ratings today, with price targets of C$56 and C$60 respectively (vs. today's close in Toronto of A shares at C$55.01).
- Improving performance in wireless and cable subscribers sets up well for the coming year, says RBC's Drew McReynolds, and Scotiabank's Jeff Fan thinks momentum is good enough for the coming quarters with interim chief Alan Horn -- though a lengthy transition before Joe Natale takes over (due to his non-compete agreement, which could run to Aug. 1) has Fan worried other senior management may leave.
- Credit Suisse stayed Neutral on the stock but bumped its price target to $54 from $53. Meanwhile, Macquarie's Greg MacDonald (C$60 price target) is OK with the "musical chairs" at the top since Natale (a former chief at Telus) looks to have stronger operating skills in both wireline and wireless. Laurence may have done his "fix-it" job of trimming management and improving operations.
Mon, Oct. 17, 11:36 AM
- Rogers Communications (RCI +1%) is up after surprising to the upside on its Q3 earnings and surprising even more with a CEO transition.
- Guy Laurence is out as chief executive effective immediately, after spending not quite three years at that position. Joe Natale, former CEO of Telus, will become president and CEO as soon as he is in a position to join Rogers. In the meantime, Alan Horn will act as interim president/CEO.
- For Q3, the company posted its best wireless service revenues since 2010, and profits and revenues rose 3%. Wireless service revenues rose 6% to more than offset a 19% decline in equipment revenues.
- Revenue by segment: Wireless, C$2.04B (up 3%); Cable, C$865M (down 1%); Business Solutions, C$95M (up 1%); Media, C$533M (up 13%).
- Postpaid net additions were 114,000 (up 37,000 Y/Y), and churn dropped to 1.26% from 1.31%, its fourth straight quarter of Y/Y improvement. Average revenue per postpaid account was $121.39, up from $113.34. Prepaid net adds came to 67,000 (down 10,000 Y/Y), and churn rose to 3.49% from 3.08%.
- Blended ARPU came to $62,30, up from a year-ago $61.02.
- Press Release
Mon, Oct. 17, 7:05 AM
Thu, Oct. 6, 3:08 PM
- Rogers Communications (NYSE:RCI) says it's giving more control over data (and especially data billing) to its customers.
- The company will give subscribers the ability to shut off family/friends using too much mobile data in a shared data plan, in an effort to cut support calls complaining about data usage/pricing (which number 1.5M per year).
- The company's move to help users manage international roaming had an effect similar to the one Rogers is hoping for, reducing related complaints by 90%. "If you take away the anxiety, they will use it more," says CEO Guy Laurence.
- The company's upgraded app allows for data alerts and offers subscribers multiple actions they can take to avoid overages.
Fri, Sep. 30, 2:50 PM
- Rogers Media (RCI -0.2%) has rolled out a new approach to its magazine portfolio, cutting the print editions of several titles in a "doubling-down" on digital media.
- "We are going where our audiences are, and doubling down on digital to grow our consumer magazine brands," says Rogers Media President Rick Brace.
- FLARE, Sportsnet, MoneySense, and Canadian Business will be exclusive to the Web and apps starting in January. All will have new content daily.
- Meanwhile, four consumer magazines will stay in print, though three will come less often: Maclean's will be monthly, and Chatelaine and Today's Parent will each come out six times a year. Meanwhile, HELLO! Canada will be unchanged, appearing in print weekly.
- It also says that this fall it will divest all business-to-business publications, and seek to divest Châtelaine, LOULOU, and L'actualité, in a focus on English-language brands.
Tue, Sep. 27, 5:06 PM
- Shutting down its streaming joint venture Shomi isn't going to affect Rogers Communications' (RCI +0.9%) commitment to its dividend, its deputy chairman says.
- Rogers and Shaw Communications had worked to establish Shomi as a rival to Netflix in Canada by opening it up to all Canadians in the middle of last year, but the companies yesterday said they were shutting down the C$8.99/month service by the end of November.
- Winding down the service should hit Rogers to the tune of C$100M-C$140M in losses, but: "While that didn't work to what was planned, it hasn't diminished our enthusiasm and hunger to invest," says Deputy Chairman Edward Rogers.
- He still sees the company as a dividend-growth stock, he says: "We are committing to our company, committed to the people that own our shares and thanking them and giving back to them in the form of dividends as the company grows."
- The company's dividend currently provides a forward yield of 3.42%.
- Rogers announced a $1.5B real estate investment in downtown Mississauga, Ontario, and earlier said it was acquiring Tillsonburg Broadcasting.
Tue, Sep. 27, 1:33 PM
- Rogers Media (RCI +0.8%) has agreed to acquire Tillsonburg Broadcasting Co., a broadcaster serving Southwestern Ontario.
- The deal helps fill out Rogers' radio footprint in the region. TBCL serves not only Tillsonburg but major centers including London, Kitchener-Waterloo, Woodstock and St. Thomas.
- Part owner and GM Carolyn Lamers will stay with the Lamers family-owned stations to assist in the transition.
- Subject to Canadian regulatory approval, the deal is expected to close by early 2017.
Mon, Sep. 26, 4:49 PM
- Shomi -- the streaming video service launched across Canada last year by Rogers Communications (RCI -0.4%) and Shaw Communications (SJR -1.3%) -- is shutting down at the end of November.
- The business climate and online video marketplace have changed markedly in the last few years," says the service's general manager, David Asch. "Combined with the fact that the business is more challenging to operate than we expected, we've decided to wind down our operations.
- Previously available only to the companies' subscribers, Shomi was opened up to all Canadians in summer 2015, with a Netflix-like price of C$8.99/month.
- Current members will be able to keep viewing until Nov. 30.
Thu, Aug. 11, 5:22 PM
Thu, Jul. 21, 11:16 AM
- Rogers Communications (NYSE:RCI) is leading telecom gainers today, +4.7%, after managing a beat on profits in its Q2 earnings.
- Revenue by segment: Wireless, $1.93B (up 1%); Cable, $870M (flat); Business Solutions, $97M (up 3%); Media, $615M (up 6%).
- Wireless postpaid net adds were 65,000 (improved by 41,000) and churn improved for the third straight quarter, by 5 basis points. Wireless service revenue improved by 5% both with more subscribers and higher postpaid average revenue per account (attributed to the "Share Everything" plans).
- Cable revenue was stable because growth in Internet of 15% offset declines in TV and phone. "We continue to see an ongoing shift in product mix to higher-margin Internet services."
- Cash flow from operating activities was $1.12B. Free cash flow was $495M, up from a year-ago $476M, as lower cash tax payments added to a higher adjusted operating profit.
- Press Release
Thu, Jul. 21, 7:04 AM
Wed, May 11, 11:09 AM
- Canada has denied an appeal by BCE of a decision that requires its telecoms to share their last-mile fiber connections.
- That means the decision by its regulator (Canadian Radio-television and Telecommunications Commission) is upheld, and smaller firms will get an expansion foothold as Canada's big three -- BCE, Telus (NYSE:TU) and Rogers Communications (NYSE:RCI) -- will have to share connections to homes and businesses.
- The CRTC made the decision to protect competition in the sector. It "strikes the right balance between the private sector having incentive to invest and consumers having a competitive choice," says Navdeep Bains, the country's minister of innovation.
- In U.S. trading: BCE -0.4%; TU +1.4%; RCI +0.5%. Shaw Communications (NYSE:SJR), entering the wireless market through its acquisition of Wind Mobile, is up 0.7%.
- Now read Shaw Communications Picking A Challenging Time To Work To Become The Fourth Major Canadian Telecom Giant »
Tue, May 3, 12:50 PM
- Streaming service Shomi has expanded its reach further by adding Xbox One to its platforms.
- The service, jointly offered by Rogers Communications (RCI -1.9%) and Shaw Communications (SJR -1.5%), used You.i TV to power the Xbox version, similar to its offerings for iOS/Android and the PlayStation 4.
- In a move against Netflix, the two telecoms said last May they would open Shomi to all Canadians rather than only their own TV subscribers.
- Shomi's now available on Web browsers, iOS/Android, Shaw and Rogers' set-tops, Xbox 360 and One, Apple TV, and Google Chromecast.
- Now read My Top Media And Publishing Stocks For 2016 »
Mon, Apr. 18, 5:26 PM
- Rogers (NYSE:RCI) declares C$0.48/share quarterly dividend, in line with previous.
- Forward yield 3.83%
- Payable July 4; for shareholders of record June 12; ex-div June 8.