Rogers Communications ( RCI Quick Quote RCI - Free Report) recently announced that its Sportsnet channel would broadcast the 23rd Annual Scotiabank Hockey Day in Canada on Jan 21. Scotiabank Hockey Day is Canada’s biggest single-day hockey celebration that features all seven Canadian National Hockey League (NHL) teams in action. The event is held each year to connect hockey to various communities, build memories and experiences for them and empower hockey’s next generation. Hosted by Ron MacLean live from Harrison Park’s Good Cheer Rink and the Harry Lumley Bayshore Community Centre in Owen Sound, Ontario, the festivities will begin on Jan 18, featuring grassroots hockey events, NHL alumni and the Stanley Cup, and an outdoor hockey festival. On Jan 21, the event will broadcast a live game between the Professional Women’s Hockey Players Association’s Team Scotiabank and Team Adidas. Marquee players such as Rebecca Johnston, Blayre Turnbull, Sarah Nurse and Kendall Coyne Schofield will be seen in action. Hockey being the most popular sport in Canada already receives massive traction from fans. These exciting tournaments that feature renowned players are expected to bolster viewership on Sportnet even further. Streaming being the upcoming preference of the youth, has made Rogers make the entire event available on its streaming platform, SN Now as well. This will enable Rogers to receive revenues not just from advertisements but also from subscription fees. Rogers to Benefit From the Tournaments Under Its Media Business Division
The media business of Rogers is turning out to be a significant division that has been aiding the company’s top line as in third-quarter 2022, its media revenues were up 12% year over year. This could probably be attributed to the varied tournaments that the company has on its channels that brings fans from all sport diversities to it.
Tournaments like Major League Baseball (MLB), for which Rogers has an exclusive right in Canada, have been benefiting the company. Per Sports Business Journal, The Blue Jays, which is the only Canadian Team in the tournament, had an average viewership of 896,000 viewers through the regular season of 2022 on Sportsnet, a 39% increase year over year. This marks it as the most-watched season since 2016.
The MLB tournament of 2023, which is about to begin on Mar 29, is expected to receive the same or even larger traction from the audience.
Rogers had also signed a ten-year agreement with Canucks Sports and Entertainment in October last year that renews a deal to broadcast every Canucks game on Sportsnet’s TV channels, which includes authentic games like ice hockey. Despite these growth opportunities, it is seen that the investors are losing faith in the company as shares of Rogers have tumbled by 2% over the last year compared with the Zacks Consumer Discretionary sector, which fell by 26%. This is primarily due to the ongoing concerns about its merger with Shaw Communications , which is facing opposition from the Canadian tribunal.
Zacks Rank & Stocks to Consider
Rogers currently has a Zacks Rank #3 (Hold).
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Some better-ranked stocks in the same sector are
Royal Caribbean Cruise ( RCL Quick Quote RCL - Free Report) and Nexstar Media Group ( NXST Quick Quote NXST - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). Shares of Royal Caribbean Cruises fell 24.5% in the past year. The Zacks Consensus Estimate for earnings is pegged at a loss of $1.34, which increased by 5% over the past 30 days. Shares of Nexstar Media Group gained 8.3% in the past year. The Zacks Consensus Estimate for earnings is pegged at $7.57, which has been constant over the past 30 days.