Rogers Communications News:
Rogers Communications has reported lower-than-expected revenue for the first quarter of 2023. The company’s revenue was affected by weakness in its cable business and intense competition in the telecommunications industry.
The company reported total revenue of CAD 3.18 billion ($2.53 billion) for the quarter, which missed analysts’ estimates of CAD 3.25 billion ($2.59 billion). This represents a 1% increase from the same period last year. However, Rogers’ net income for the quarter rose to CAD 502 million ($399.3 million), up from CAD 468 million ($372.2 million) in the same quarter last year.
Rogers Communications is known for its cable, wireless, and media services. Its cable division, which includes its internet and TV services, saw a decline in revenue during the quarter. The division’s revenue dropped by 2% to CAD 992 million ($789.1 million) due to lower demand for cable services and increased competition from other providers.
Rogers’ wireless division, on the other hand, performed well during the quarter. The division’s revenue increased by 2% to CAD 2.06 billion ($1.64 billion), driven by strong demand for smartphones and wireless data plans. The company added 116,000 net postpaid wireless subscribers during the quarter, which helped boost its wireless revenue.
Rogers’ media division, which includes its television and radio stations, also saw a decline in revenue during the quarter. The division’s revenue dropped by 1% to CAD 129 million ($102.7 million), due to lower advertising revenue.
Rogers Communications faces stiff competition in the Canadian telecommunications market, which is dominated by three major players: Rogers, Bell, and Telus. These companies offer similar products and services, which has led to intense competition for customers.
The company has been investing heavily in its network infrastructure and customer service to stay competitive. It recently launched Canada’s first 5G network, which is expected to help drive growth in its wireless division. The company has also been expanding its internet and TV services to more regions across Canada.
Rogers Communications missed Wall Street estimates for its first-quarter revenue due to weakness in its cable business and increased competition. However, the company’s wireless division performed well during the quarter, driven by strong demand for smartphones and wireless data plans. Rogers will need to continue investing in its network infrastructure and customer service to stay competitive in the Canadian telecommunications market.
Rogers Communications Inc Stock Forecast:
According to 18 analysts, the average target price for Rogers Communications Inc over the next 12 months is CAD 70.78, with a strong buy rating. However, Stock Target Advisor‘s analysis is bearish, based on 4 positive signals and 10 negative signals. The current stock price of Rogers Communications Inc is CAD 64.64, which has decreased by 1.07% over the past week and decreased by 11.79% over the last year, but increased by 3.00% over the past month.