Rogerstest - OP-T8

Report
Rogers Communications Inc.
November 24, 2010
Michael Masotti
Ana Maria Cubillos-Torres
Vincent Galland
Celine Chesnais
Edouard Ringuet
Today’s Presentation
Company
overview and
historical position
External
challenges and
competition
Internal
capabilities and
challenges
Adopted
strategic
direction and
why/how it
impacts Rogers
Where Rogers
is going and
why?
growth
alternatives
implementation
Black swans
Brief Overview
Year
2009
ROE
ROA
Net
Income
Rogers
34.59%
8.68%
$1.5
Billion
BCE
11.48%
4.29%
$1.6
Billion
Telus
13.23%
5.21%
$1 Billion
Market Share in
2009
29.62
%
38.59
%
31.24
%
Over the past 3 years:
-Sustainable and growing financial trend for Rogers
-Competitors’s difficulty to maintain regularity in their figures
- Almost unchanged market position for those 3 leaders.
Rogers
BCE
Telus
History
1900-1939: E.S.Rogers, a pionner in Canadian telecommunication industry:
 1921: Ted Rogers participated in a contest sponsored by the American Radio Relay
League, and was the only Canadian succesfull in sending a signal to a small town in
Scotland.
 1924: Rogers invents the world's first alternating current (A/C) tube which allows
radios to operate from regular household electricity rather than batteries, eliminating
the need for recharging, and allowing a clearer sound from the radio.
 1928: Rogers Batteryless Radios merged with Majestic Electric Radios, a leading
radio manufacturer in Chicago in 1928.
 1931: Obtains the first experimental television license in Canada.
History
After 1960, the family business is revived by Ted Rogers Junior
After Rogers Sr’s death in 1939, Rogers Radios were managed by his wife and business partners.
 1960-1973: Roger Jr buys CHFI, acquires Bramalea Telecable, and efficiently enters the
cable market, due to the great succes of those latter. Launches “cable TV converter in
Toronto”, providing more channels for its customer.
 1979-1981: Rogers goes public, after acquiring Canadian Cablesystems, and enters the
US market with different acquisition and franchises strategies.
 1985-1989: Launches its first cellular service with Cantel (former Rogers Wireless),
formation of Rogers Communication Inc., becomes largest video rental stores in Canada
with Rogers Video, and finally all its US cable assest for $1billion to invest in wireless
sector.
 1991-1999: Rogers continues to diversify and strenghten its portfolio, a pay-per-view
cable,first all-news radio station in Canada (680 news), Rogers Cablesystems launches
Digital Cable Television service – offering more channels and enhanced services to
subscribers. Microsoft, AT&T and British Telecom invest in Rogers.
History
The years 2000: Major moves that maintained Rogers as leader of the market.
 2000-2003: Rogers acquired Cable Atlantic for $151.8 million, after it was out-bid by
Quebecor for the purchase of Videotron. Acquires control of Sportsnet from CTV renamed
Rogers Sportsnet, launches HDTV, GSM network, video on demand…
 2004: Rogers buys back AT&T's interest (34%) in Rogers Wireless for $1.8 billion, $1.6
billion deal to purchase wireless provider Microcell (Fido). Rogers became Canada's
largest wireless operator and only GSM provider. Rogers Communications repurchased the
shares of Rogers Wireless that were publicly held and proceeded to take the company
private.
 2005-2010: More acquisitions of TV channels across Canada, magazines, sports team
launches the Apple revolutionnary iphone in 2008. Ted Rogers passed away the same
year, Alan Horn becomes acting CEO of Rogers Communications Inc., as well as retaining
Chairman duties.In 2009 Nadir Mohamed becomes President & CEO of Rogers
Communications Inc.

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