From Nasdaq.: 2024-09-19 12:36:00

Rogers Communications announced plans to buy out Bell’s 37.5% stake in Maple Leaf Sports & Entertainment for C$4.7 billion, making it the majority owner with a 75% holding. This strategic move expands RCI’s presence in the sports and media market, adding to its existing portfolio that includes the Toronto Blue Jays and Sportsnet.

RCI’s recent partnerships with NHL teams and streaming services like Amazon Prime Video and Disney+ have enhanced its content portfolio, driving a 5% increase in media revenues to C$1.22 billion in the first half of 2024. Despite facing challenges in the advertising market, RCI’s investments in sports and entertainment content remain strong.

Rogers shares have declined 15.3% YTD due to competition in the wireless and cable market, impacting revenue growth. Despite lagging industry peers, RCI aims to increase service revenues by 8%-10% in 2024. Concerns about debt leverage ratio and cash flow challenges may hinder stock recovery.

RCI shares are undervalued with a Zacks Rank #3, signaling a hold for investors. Despite short-term challenges, RCI’s strategic expansions in media and sports content could drive long-term growth. Investors may consider waiting for a more favorable entry point before buying RCI stock.



Read more at Nasdaq.: RCI to Gain MLSE’s Majority Control: How Should You Play the Stock?