Roger Communications RCI shares have dropped 23.4% year to date (YTD), underperforming the broader Zacks Consumer Discretionary sector’s growth of 10.1%

Its shares have also lagged the Zacks Cable Television industry and peers, including Broadcom AVGO, Charter CHTR and Liberty Global LBTYA. During the same period, shares of Broadcom, Liberty Global and Charter have gained 60.4%, 16.6% and 1.8%, respectively. The industry has increased 0.4% YTD.

RCI’s underperformance can be attributed to stiff competition from TELUS and BCE in the wireless operations market and in the communication cable market. For third-quarter 2024, RCI’s cable revenues reduced 1% year over year to $1.97 billion due to a decline in the Home Phone and Satellite subscriber base.

Rogers Communication, Inc. Price and Consensus

Rogers Communication, Inc. price-consensus-chart | Rogers Communication, Inc. Quote

Will Expanding Portfolio Aid Rogers’ Prospects?

Rogers Communications tested DOCSIS 4.0 with Comcast XER modem to increase its download speed to four gigabits and upload speed to one gigabit, and to integrate AI, cloud functions as well as data processing capabilities to drive customer satisfaction.  

RCI’s enhancement to the DOCSIS 3.1 platform aims to develop network resilience and provide stable connectivity as well as quicker download and upload speed to its users, making the brand an industry pioneer in delivering such speed through Hybrid Fibre Coax arrangement.

Roger’s is also expanding its portfolio by bringing its partners’ SpaceX’s latest technology to users in Canada to provide emergency alerts via satellite to mobile phones in areas affected by disasters. 

RCI also inked a strategic agreement to buyout Bell’s 37.5% ownership in Maple Leaf Sports & Entertainment (MLSE) to become the largest owner with a 75% stake in MLSE. The deal is expected to conclude by mid-2025 and will allow RCI to expand its portfolio in media and live sports offerings. 

Rogers already owns Toronto Blue Jays, Rogers Centre and Sportsnet and is further expanding its portfolio in the live sports industry.

In the lifestyle and entertainment market, Rogers has partnered with Disney to bring Disney+ to Ignite TV users free of cost.

RCI entered into an agreement with Warner Bros. Discovery to launch and distribute Discovery channels such as Discovery Science, Animal Planet and MotorTrend.

RCI Fiscal 2024 Guidance Positive

For 2024, Rogers expects total service revenues to grow between 8% and 10%. Adjusted EBITDA is expected to grow in the range of 12-15%.

Capital expenditure is expected between C$3.8 billion and C$4 billion. Free cash flow is expected in the range of C$2.9-C$3.1 billion.