Rogers Communication Shares Rise on Revenue NewsRogers Communications Inc. beat estimates after posting strong wireless sales during the back-to-school period and a revenue increase in its media and cable businesses.
Canada’s largest wireless provider earned C$1.27 a share on an adjusted basis, higher than the C$1.09 expected by analysts tracked by Bloomberg. The company added 225,000 postpaid wireless phone customers, about 27% more than forecasts.
The company didn’t change its guidance for the year.
The results suggest Rogers is benefiting from Canada’s strong immigration — including an influx of foreign students — and from its integration of Shaw Communications Inc., which Rogers acquired in April for about C$20 billion ($14.5 billion).
In the weeks after the deal closed, Rogers shares spiked to their highest level in almost a year, but they’ve fallen 17% since the beginning of May, in line with major peers and the S&P/TSX Communication Services Sector subindex.
Rogers' mobile phone and internet additions were 279,000 in the period, up 52,000 from last year at this time. Of the new additions, 261,000 were new mobile phone connections, while internet net loading was 18,000, up 12,000 year-over-year thanks to growth in both the eastern and western regions of Canada.
Canada telecom shares, which are bought by some investors for dividend payouts, have been hurt by the surge in government bond yields. The regulatory environment has also turned less favorable recently as the government, under pressure from voters frustrated about the high cost of living, tries to generate more price competition.
In the latest example, Canada’s telecom regulator said this week it will force phone companies in Ontario and Quebec to open up their “fiber to the home” networks that provide high-speed broadband to households. Next year they’ll have to sell access to those networks to independent internet resellers at prices prescribed by the regulator.
Price Momentum
RCI is trading in the middle of its 52-week range and below its 200-day simple moving average.
What does this mean?
Investors are still evaluating the share price, but the stock still appears to have some downward momentum.
