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Rogers Communications Inc Class B RCI

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Pandemic Continues to Weigh on Rogers' Revenue as Recovery Takes a Step Back in Q4

Matthew Dolgin, CFA Equity Analyst

Analyst Note

| Matthew Dolgin, CFA |

After showing signs of recovery in the third quarter, Rogers regressed in the fourth quarter as Canada saw renewed lockdowns, keeping the wireless business under pressure. While Rogers’ business will continue to be depressed as long as the pandemic limits normal movement and travel, we believe the business is structurally sound and sell-offs in the stock like the one following the earnings release create opportunities, as results are likely to improve dramatically whenever life returns to normal. We plan to maintain our CAD 65 fair value estimate, which makes the stock somewhat attractive after today’s decline.

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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 2019 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, 2020
Fiscal Year End Dec 31, 2020
Stock Type
Employees 25,300

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