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Rogers Communications Inc Shs -B- Non-Voting RCI

Rating as of

Morningstar’s Analysis

Valuation
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Rogers Board Drama Is Messy and Intriguing, but Doesn’t Change Our Outlook for the Company

Matthew Dolgin, CFA Equity Analyst

Analyst Note

| Matthew Dolgin, CFA |

Leaks and rumors behind what led to the abrupt departure of Rogers CFO Tony Staffieri last month have been all but confirmed in recent days through a public spat among board members. The drama is likely even more intriguing considering the split between board members also represents a family feud within the Rogers family, which controls the company. It appears Ed Rogers, who was removed as chairman on Oct. 21, will drag this fight on, and a court will likely determine the outcome considering the firm’s complicated ownership structure. But for the moment, CEO Joe Natale appears to have survived an attempted ouster by Ed Rogers, and we don’t expect any deviation in the firm’s path forward. We are maintaining our CAD 68 fair value estimate.

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Company Profile

Business Description

Rogers is the largest wireless service provider in Canada, with its more than 10 million subscribers equating to one third of the total Canadian market. Rogers' wireless business accounted for over 60% of the company's total sales in 2020 and has increasingly provided a bigger portion of total company sales over the last several years. Rogers' cable segment, which provides about one fourth of total sales, offers home Internet, television, and landline phone service to consumers and businesses. Remaining sales come from Rogers' media unit, which owns and operates various television and radio stations and the Toronto Blue Jays. Rogers' significant exposure to sports also includes ownership stakes in the Toronto Maple Leafs, Raptors, FC, and Argonauts.

Contact
333 Bloor Street East, 10th Floor
Toronto, ON, M4W 1G9, Canada
T +1 416 935-7777
Sector Communication Services
Industry Telecom Services
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 25,300

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