- The sub-index of the TSE
The sun-index that tracks the performance of the Rogers Communications Inc. is Communication service industrial.
- The company’s stock symbol
Rogers’s stock symbol on TSX (Toronto Stock Exchange) is RCI.a and RCI.b NV. Base on the requirement of this report, data of RCI.a(Common Stock) is been chosen for analyzes.
- Company Under Examination
- History of the Rogers Communications Inc.
Edward S. Ted Rogers is the founder of Rogers Communication Inc. In business, Mr. Rogers has always emphasized customer service and pioneering engineering and has been involved at the start-up stage with a number of ventures in broadcasting, cable television and communications. In the 1970’s, Rogers Cable TV became Canada’s most innovative cable company.
In 1974, it became the first cable company to expand past 12 channels, and the cable company specialized in adding more programming choice, in particular with multi-cultural television. Through a reverse-takeover in 1979, Mr. Rogers’ company, Rogers Cable TV Limited, acquired control of Canadian Cablesystems Limited.
In 1980, Rogers purchased Premier Communications Limited, which has doubled Rogers’ cable subscribers and made Rogers become No.1 cable television Company in Canada. Furthermore, During the years 1979 to 1982, Rogers Communications acquired and built a number of cable television systems in the United States. In March 1989, Rogers Communications completed the sale of its U.S. cable television interests for CDN $1.581 billion
In 2004, Rogers Communication has become Canada’s premier service provider in the scoop of communication, entertainment and information.
- A short description of the current operations of the firm
Rogers Communications Inc. is consists of three Rogers companies. They are including Rogers Cable, Rogers AT&T Wireless and Rogers media and which they are specify in delivering high quality service to the communication service market.
Rogers cable is the largest cable television service provider in Canada, by offering cable and high definition television, Video-On-Demand, digital television, high-speed Internet access, interactive and enhanced television. It has provides cable services to almost 2.2 million customers across area of Ontario, New Brunswick and Newfoundland.
As the Canada’s leading national wireless communications service provider, Rogers AT&T Wireless is serving nearly 3.8 million wireless customers. Its seamless GSM/GPRS and analog networks cover 93% of the Canadian Market.
Rogers Media owns 43 radio stations across Canada. This division also operates the number one TV retailer in Canada, including the Shopping Channel, Canada's only regional sports network – Sports net and multicultural television channels Omni.1 and Omni.2. Rogers Media also publishes over 80 consumer magazines and trade publications.
- A short description of the firm’s future plans and prospects
In the fourth quarter of 2003, Rogers Communication Inc.’s quarterly Revenue grows 13%, operating profit up 22% and capital expenditures down 21% as cable, wireless and media divisions each deliver solid results. Furthermore, the company’s consolidated quarterly operating profit grew 21.7% year-over-year, with all operating companies contributing double-digit year-over-year growth, with 13.1% growth at Cable, 35.5% growth at Wireless and 3.5% growth at Media.
- A short description of the industry in which the firm operates, key competitors and industry trends
In the communication service industrial, there are two key competitors against Rogers Communication Inc. They are BCE Inc. and Shaw communication. Detail of the company provided in appendix.
- Financial Analysis
- Beta
According to the regression analyzes which base on the HPR of stock and market, the beat for Rogers Communications Inc. 2.029. Since the beta coefficient is greater than one, we know the investment’s returns are likely to be more volatile than the market as a whole in the future. We call such an investment aggressive. This return on the stock are plotted against the returns of the market as measured by the S&P/TSX Composite index. Beta measure the movement of the price of a particular stock, and ultimately the returns on the stock, as compared with the market as a whole. The time periods used to compare are the same for the stock as well as the market returns
- Alpha
The Alpha is a calculated to be 0.0155. It is the point where the characteristic line crosses the Y-axis. This means that when the market returns are expected to be 0, the expected returns on Rogers Communications Inc. Stock is 0.0155. A positive alpha denotes that the stock will rise while the market as a whole is rising. An adverse relationship exists. The alpha is equal to the vertical intercept of the regression line. This is 0.0155. This is the rate of return that the model predicts Rogers Communications Inc. would offer if the market returned 0% return.
- R square
The r-squared term tells us how reliable the regression line is and how much of the variability of Rogers Communication returns can be explained by changes in the returns of the independent variable. In this case the r-squared is .38 or 38%. So 38% of the total risk of HBCS is systematic. Therefore, 1 - 0.38 = .62 = 62% is diversifiable.
Appendix I
Hiu Kwong (Jason), Chan Page
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