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Casey anticipates that elevated competitors and diminishing cable income will impression Rogers’ major gross sales into the third quarter. Moreover, a aggressive pricing battle in Quebec between BCE and Quebecor is resulting in squeezed revenue margins.
By 2 p.m. in Toronto, BCE’s shares dropped by 2.5 % to $44.74, marking its lowest intraday degree since October 2013, with Rogers and Quebecor each experiencing a downturn of round three %.
This decline in Rogers’ share worth happens practically one yr after its important acquisition of Shaw Communications Inc., a major rival of Telus in varied Western Canada markets.
Whereas some analysts have expressed optimism concerning Rogers as a consequence of anticipated cost-saving measures and the potential for elevated money movement from its cable and web operations following the merger, Casey’s evaluation means that intensified competitors is eroding cable income.
Consequently, he has decreased his EBITDA (Earnings Earlier than Curiosity, Taxes, Depreciation, and Amortization) projection for Rogers by roughly seven % for the present yr and 6 % for the next yr.
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