Rogers Communications Inc.
) 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
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
) 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
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
). Both the stocks currently have a Zacks Rank #3 (Hold).
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CABLEVISION SYS (CVC): Free Stock Analysis
BCE INC (BCE): Free Stock Analysis Report
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