Rogers, Scotiabank Ink 6-yr NHL Deal - Analyst Blog

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Recently, Rogers Communications Inc. ( RCI ) received its first major National Hockey League (NHL) sponsorship from one of Canada's leading banks, Scotiabank. The financial details pertaining to the 6-year agreement have been kept under wraps.

Per the deal, Scotiabank will hold the sponsorship rights for the Wednesday and Sunday night NHL games which will be telecasted by either Rogers Sportsnet or its City television stations. Moreover, the bank will have the scope to connect to customers through tablets, smartphones and PCs.

In Nov, 2013, Rogers had signed a 12-year broadcast and multimedia agreement with National Hockey League (NHL) for national rights to NHL games on all platforms and languages. The agreement has come into effect from the 2014-2015 session and will continue till the 2025--2026 one. Rogers will pay approximately $5.2 billion to NHL throughout the deal term.

NHL is highly popular in Canada. Thus, it is expected that the company will be successful in getting sponsorship for the TV broadcast of the games. Rogers is already in talks with several organizations for the same. As the advertisements displayed during the matches have considerable coverage, the company will able to generate significant revenues in the coming years. It is also believed that Rogers is also in talks with Canadian Tire Corp. Ltd. and Kraft Foods Group Inc. for the NHL sponsorships.

Rogers' cable operations are currently facing increased competition. BCE Inc. 's ( BCE ) foray into cable TV services is intensifying competition and may likely slash Rogers' market share and cap margin expansion. Moreover, Rogers' Media segment is getting affected by continued softness in the advertising market. We believe that much of the Media segment's growth is dependent on the strong viewership ratings of Rogers' radio and TV broadcasting operations.

Hence, we remain highly optimistic that the commencement of NHL games will certainly boost the company's Media segment, going forward.

Other Stocks to Consider

Rogers currently has a Zacks Rank #5 (Strong Sell). Other better-ranked stocks in the communications industry are Cablevision Systems Corporation ( CVC ) and Comcast Corp. ( CMCSA ).  Both the stocks currently have a Zacks Rank #3 (Hold).


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CABLEVISION SYS (CVC): Free Stock Analysis Report

BCE INC (BCE): Free Stock Analysis Report

ROGERS COMM CLB (RCI): Free Stock Analysis Report

COMCAST CORP A (CMCSA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: CVC , BCE , RCI , CMCSA

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