Rogers Communications' (RCI) Media Arm Inks 2 Prime Deals
Leading diversified Canadian communications and media company, Rogers Communications Inc.’s RCI subsidiary, Rogers Media, Inc., signed two major deals which are likely to boost its business and open up scope for newer opportunities in the entertainment and media industry.
Rogers Media inked a new deal with The Weather Company -- The Weather Company is a subsidiary of the Data and Analytics Platform business unit of International Business Machines Corporation IBM -- and an extended deal with Iowa-based media conglomerate company, Meredith Corporation MDP.
Rogers Media and The Weather Company will team up to provide in-depth weather data and forecasts and content customized specifically for the Canadian market. The Weather Company and Rogers Media Sales further plans to enhance advertising across both the companies' properties, with the latter leverage its advertising sales capabilities to monetize the former’s properties in Canada. The output can be easily accessed by both national and local Canadian marketers.
Meredith, which includes Canada's no.1 digital food site - allrecipes.com, will help expand and enhance Rogers Media Sales' reach in the food and lifestyle vertical.
Currently, Rogers Communications is a Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Expected Synergies
Rogers Media is a diversified media platform which offers radio and television broadcasting, sports entertainment, publishing, televised and online shopping, magazines and digital media properties. These latest deals are expected to increase the scalability and business opportunities of Rogers Media’s advertising segment, through the availability of different brands. This well help the advertisers better understand the connections between the brands and their customers.
We believe through this deal, Rogers Media will be able to expand and deliver brand-safe, premium-content environments to its advertising partners which will focus on lifestyle, entertainment, news and information verticals. Every month, more than 13.8 million Canadians visit Rogers Media digital properties across all devices.
On the back of these new deals, Rogers Media digital network is expected to reach upto 24.7 million Canadians, building strategic partnerships based on world-class organizations including the National Hockey League, Major League Baseball, Conde Nast Entertainment, and many more.
Price Performance
Over the past three months, share price of Rogers Communications inched up 12.23%, outperforming the Zacks-categorized Cable Television industry’s 9.24% gain.
Amid such booming prospects and an impressive price performance, Rogers Communications continues to face tough competition from market incumbents like TELUS Corp. TU and BCE Inc. (BCE), and other small regional cable TV operators in the wireless market of Canada. Shaw Communications Inc.’s (SJR) entry into the Canadian Wireless market with the WIND Mobile acquisition has intensified competition.
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