The Daily Chase: Flat revenue at Rogers amid corporate power struggle; TSX on a roll
BNN Bloomberg
Today it’s about fundamentals for Rogers Communications after more than a week of being in the news amid leaks about a power struggle pitting the company’s chairman (and son of the founder) against family members, the chief executive, and the rest of the board.
Today it’s about fundamentals for Rogers Communications after more than a week of being in the news amid leaks about a power struggle pitting the company’s chairman (and son of the founder) against family members, the chief executive, and the rest of the board. The telco has posted flat third-quarter revenue and an adjusted profit per share that matched estimates as the flagship wireless business benefitted from higher roaming revenue and the cable business got a boost from internet customers upgrading their service packages, while the media division saw adjusted EBITDA plunge 63 per cent due to tough year-over-year comparisons. We’ll find out if the performance is more interesting to analysts than the board-level drama when the conference call starts at 8 a.m. (watch for Jameson Berkow’s live coverage on Twitter and at BNNBloomberg.ca), when we should also expect plenty of discussion about the pending acquisition of Shaw Communications. About the board tension: Rogers revealed today that a new executive oversight committee has been tasked with establishing “clear protocols for interactions between the chair and members of management.”
TSX AT ALL-TIME HIGH
The composite index has closed higher in 11 straight sessions, matching its longest winning streak since November 2019, and enters the day at an all-time high of 21,188.19 points. Yesterday it was Canadian National Railway that led the way higher, and that stock is poised for more gains at the start of trading after The Wall Street Journal broke the news that Elliott Management (known for its track record in activism) has amassed a “big stake” in CN. If you missed it, check out our conversation with outgoing CEO Jean-Jacques Ruest, who was emphatic that CN Rail will not get “pushed around by a hedge fund.”
CRAVING BANK DIVIDENDS
It’s been more than a year and a half since the Office of the Superintendent of Financial Institutions blocked Canada’s banks from raising their dividends. There’s plenty of pent-up demand, and clearly plenty of pent-up capacity. Rob Wessel from Hamilton ETFs this week estimated that once OSFI unshackles the banks, there could be immediate hikes of up to 25 per cent. Wessel joins Paul on The Street to elaborate on that prediction and perhaps also weigh in on the remarkable call by Scotia’s Derek Holt that the Bank of Canada might need to raise rates eight times by the end of 2023.
…ABOUT THOSE HIGHER RATES
