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Summary
- Rogers Infinite™ unlimited data plans have reached nearly 2.2 million total customers, up almost 60 per cent YTD.
- Rogers Communications declared a quarterly dividend of C$ 0.50 per share.
- BCE Inc. has rebounded nearly 21 per cent since the pandemic-led crash on March 24.
Canadian wireless firms are recovering from the dull first-half of this fiscal year. They have started rolling out faster and quality fifth-generation (5G) internet service to mobile users. The high trading volumes of telecom stocks indicate that investors have started parking funds in communication companies.
Rogers Communications Inc (TSX:RCI) has reached 130 cities and towns with Canada’s largest 5G network. The telecom company also has launched 5G Smart Campus in the University of British Columbia (UBC) and the University of Waterloo. The aim is to advance research and commercialization of 5G’s technological applications, including smart city solutions, asset tracking for operations, and network sharing for first responders.
BCE Inc (TSX:BCE), a bluechip telecom stock, offers consistent dividend and has a robust cash flow. The company’s operations were sluggish due to the pandemic-related shutdown. It is currently trying to complete its 5G tower installations.
On October 19, BCE Inc announced the expansion of its innovative rapid Wireless Home Internet (WHI) facility to rural Atlantic Canada, with access planned for nearly 70,000 houses by the end of 2020 and a total of 200,000 regions over the next two years.
Rogers Communications Inc. (TSX: RCI.A)
Current Share Price: 58.26
Rogers Communications is a leading wireless company in Canada. It has more than 10 million subscribers, which means almost one-third of Canadians are connected via Rogers’ wireless. Rogers' wireless business accounted for over 60 per cent of the company's net sales in 2019. The cable business, which generates about one-fourth of total sales, offers broadband internet, television, and phone service to consumers and industries. The remaining sales come from radio stations and the Toronto Blue Jay. The wireless company collaborated with Ericsson in 2018 as its 5G retailer for its core infrastructure and Radio Access Network.
Rogers Communications Stock Performance
The company stock is up 3.11 per cent in the last three months. It has rebounded 13.15 per cent since the pandemic-led crash on March 24. The year-to-date scrips posted a 10.7 per cent decline. Rogers' current market capitalization is C$ 6.47 billion.
The company’s price-to-book ratio is 2.95, and the price-to-cashflow ratio is 6. Its current debt-to-earnings ratio is 2.16, as per TMX data. The stock offers a positive return on equity (RoE) and return on assets (RoA) of 17.81 per cent and 4.52 per cent, respectively. The company’s earnings per share (EPS) is C$ 3.93. Its price-to-earnings ratio is 17.20.
It has a quarterly dividend yield of 3.443 per cent.
Rogers Financial Highlights
Rogers Infinite™ unlimited data plans have reached nearly 2.2 million total customers, up almost 60 per cent YTD.
The telecom firm reported a 5 per cent year-over-year (YoY) drop in its total service revenue in its third-quarter results ended September 30, 2020. The total income of C$ 548 million in Q3 2020 was down 14 per cent from C$ 622 million in the same quarter last year. The company posted adjusted EBITDA of C$ 1.63 billion in Q3 FY20, a four per cent YoY drop. Rogers’ cash from operating activities was C$ 986 million, down 24 per cent YoY.
The company registered a free cash flow of C$ 868 million, up 13 per cent YoY. Rogers paid C$ 253 million quarterly dividends to its shareholders. It declared a quarterly dividend of C$ 0.50 per share.
BCE Inc. (TSX:BCE)
Current Stock Price: 56.17
BCE provides wireless and high-speed internet services, broadband, direct-to-home (DTH) satellite, VDSL television services, and landline phone services in Canada. It is one of the largest telecom giants in Canada, with a market share of 30 per cent.
BCE Stock Performance
With a 10-day average trading volume of 2.28 million, this telecom company is one of the most active stocks on across the TSX and the TSXV in the last ten days. The company has also been ranked highly on TMX’s top communications stocklist – a ranking communication stocks across the TSX and the TSXV with the largest price gains in the last 30 days.
BCE stock is up 2.23 per cent in the last months. It has regained nearly 21 per cent since the pandemic-led crash on March 24. The year-to-date scrips is down by 6.6 per cent. Its current market capitalization is C$ 50.7 billion.
The company’s price-to-book ratio is 3.024, and the price-to-cashflow ratio is 5.9. Its current debt-to-earnings ratio is 1.4 as per TMX data. BCI provides a positive return on equity (RoE) and return on assets (RoA) of 14.75 per cent and 4 per cent, respectively. Its price-to-earnings ratio is 20.30.
BCE Financial Highlights
The company added 50,121 total wireless, retail internet and IPTV net customers in Q2 FY20, crossing the 10-million wireless subscribers’ mark on its platform.
The 5G telecom firm reported a 9.1 per cent decline year-over-year (YoY) in its operating revenue in the second quarter FY20. The net earnings of C$ 294 million in Q2 2020 was down 64 per cent from C$ 817 million in the same quarter last year. The company posted adjusted EBITDA of C$ 2.33 billion in Q2 FY20, a 9.4 per cent YoY drop. BCE’s cash from operating activities was C$ 2.56 billion, up 22.4 per cent YoY.
BCE Inc. will announce its third-quarter 2020 earnings on Thursday, November 3.
