Tuesday, October 27, 2009

Rogers results look good

Given the slow advertising market lately the results reported today from Canadian telecommunications company Rogers Communications (RCI.B) (RCI (NYSE)) looked pretty good.
  • Earnings per share were up 12%
  • Wireless revenue up 7%
  • Overall revenue up 2%

Roger's Canadian exclusivity on the Apple iPhone helped these results. This tailwind will be taken away now as competitors get the phone as well. Once advertising picks up again Rogers earnings should continue to grow. They are well positioned in the Canadian market and have gobbled up a lot of Bell Canada's customers over the last few years. I think this is a good company to hold for the long term as they have pretty consistent cash flow coming from a stable product. They have also been friendly to shareholders in the past with stock buybacks and dividend increases.

My wife owns Rogers shares in her RRSP.

6 comments:

Philbert said...

the term you want is tailwind; not headwind.

MG (moneygardener) said...

Hi Philbert, Funny I changed that a couple hours ago. Did you notice it on another site somewhere? Or does it still appear that way on your monitor?

Steve C said...

Hoping for a BIG dividend increase from Rogers in February.


http://thinkdividends.blogspot.com/

sonic_molson said...

I would stay away from Rogers stock, their satisfaction ratings are falling to new lows: http://www.howardchui.com/2009/10/27/2009-canadian-wireless-customer-satisfaction-study/

The Rat said...

I have shares in both RCI.A and RCI.B on the TSX and I too am hoping for a divvy hike. Nice thread...

tsxcommentary said...

they will probably do both a dividend increase and a buyback.

I'm overwight on RCI, the new competition issue is way overblown.