Rogers is not going to spend any more money on baseball players

[Dick_Pole]

Look at their earnings right on the first page of this pdf:

 

http://www.rogers.com/cms/investors/pdf/quarterly-results/2014-Q2_Results-Release.pdf

 

No revenue growth

Net income, EPS, free cash flow are all tanking

Analysts are s***ing all over their stock, and in my opinion aren't s***ing on them enough

Stock price is near a 52-week low when everything nearly else on the stock market is within 10% of the 52-week high.

 

With new management and these s***** results, they have no money to spend on baseball players. People can yap about $600M for NHL until they turn blue, but that type of stuff is accounted for differently, expensed over many years and presumably is tied to a revenue number which will result in positive income on the deal.

 

Saying stuff like "the Jays should deal Buehrle or Happ or Reyes or whoever and use the money elsewhere" is dumb too. I am very sure if they dump a guy like Buehrle, the $19M is not going to be spent elsewhere and Rogers is just going to bank it and they Jays will just be out a quality starter next year.

 

EDIT: Just to clarify my position. If AA can trade a SP and fill another more pressing hole in the lineup, by all means do it. But Buehrle being salary dumped probably means Rogers ordered a payroll decrease and that money won't be spent. So do not hope for Buehrle to be dumped.

Edited September 29, 2014 by Dick_Pole

[burlingtonbandit]

/thread.

[Abomination]

People can yap about $600M for NHL until they turn blue, but that type of stuff is accounted for differently, expensed over many years and presumably is tied to a revenue number which will result in positive income on the deal.

 

The financials say the following:

 

Media’s adjusted operating profit was lower this quarter and y

ear to date compared to the same periods last year, as the

increase in Media’s operating revenue was more than offset by

investment in player salaries at the Toronto Blue Jays,

increased programming costs, and ramp-up costs associated wi

th the launch of Next Issue Canada and the NHL licensing

agreement which became effective July 1, 2014.

[Dick_Pole]

The financials say the following:

 

 

Yes. One thing I hope people don't do is look at the Media division in isolation. Rogers is struggling with revenue growth. People are being fired across the board. Costs are being cut across all divisions in desperation. Whether the Media division is dropping in profitability or up 100% from last year is not going to change the company outlook as a whole.

 

What's most dire about all this is the incredible amount of heat Rogers gets from people who think they are being ripped off on their cell phone plan or cable service already. The only way Rogers is going to get out of this mess is if they find a way to rip people off even more because their customer base is flat so revenue growth can only come on a per customer basis.

 

A friend of mine recently had his internet bill increased by $3/month and he screamed bloody murder to another friend of ours who works at Rogers. Meanwhile that guy is use to seeing people he knows get pink slips every 6 months for the past two years. He's one of the few competent enough to actually not get canned at Rogers yet and he's trying to jet to my company now. Believe me, Rogers is in an absolute mess. Baseball player salaries and the image of the Jays are the last thing they care about right now. Teddy croaked at the right time so his image as a skilled and respected businessman will remain intact while the nameless suits who are following him will take the heat for leading Rogers down the toilet.

[Boxcar]

Well, it's almost as if charging double the price (over a smaller ISP) for the same speed internet with a ridiculously low cap in this streaming age is a bad idea.

 

Maybe their s*** shouldn't be so expensive? As a consumer, I am totally miffed as to why someone would get anything from rogers when you can get literally everything they offer elsewhere for 20-40% cheaper.

[GD]

Well, it's almost as if charging double the price (over a smaller ISP) for the same speed internet with a ridiculously low cap in this streaming age is a bad idea.

 

Maybe their s*** shouldn't be so expensive? As a consumer, I am totally miffed as to why someone would get anything from rogers when you can get literally everything they offer elsewhere for 20-40% cheaper.

 

When you can extort them into giving you free s*** that makes them 60% cheaper lol.

[Atothe]

Yes. One thing I hope people don't do is look at the Media division in isolation. Rogers is struggling with revenue growth. People are being fired across the board. Costs are being cut across all divisions in desperation. Whether the Media division is dropping in profitability or up 100% from last year is not going to change the company outlook as a whole.

 

What's most dire about all this is the incredible amount of heat Rogers gets from people who think they are being ripped off on their cell phone plan or cable service already. The only way Rogers is going to get out of this mess is if they find a way to rip people off even more because their customer base is flat so revenue growth can only come on a per customer basis.

 

A friend of mine recently had his internet bill increased by $3/month and he screamed bloody murder to another friend of ours who works at Rogers. Meanwhile that guy is use to seeing people he knows get pink slips every 6 months for the past two years. He's one of the few competent enough to actually not get canned at Rogers yet and he's trying to jet to my company now. Believe me, Rogers is in an absolute mess. Baseball player salaries and the image of the Jays are the last thing they care about right now. Teddy croaked at the right time so his image as a skilled and respected businessman will remain intact while the nameless suits who are following him will take the heat for leading Rogers down the toilet.

 

Hold on, how is it that they can budget 600m over certain time while gaining positive income (I agree with this sentiment) but can't do the same for baseball? Jays are profitable, viewership is more then solid , what am I missing?

[Boxcar]

When you can extort them into giving you free s*** that makes them 60% cheaper lol.

 

I'm not Jewish though. I've done work for your people, and they get their money's worth every time.

[GD]

I'm not Jewish though. I've done work for your people, and they get their money's worth every time.

 

We also make damn good food.

[Boxcar]

We also make damn good food.

 

Do you live in Thornhill? That place is so Jewy. Do you have separate spots for dairy and meat utensils?

[GD]

Do you live in Thornhill? That place is so Jewy. Do you have separate spots for dairy and meat utensils?

 

Ew, that's not even Jewy, just JAPy. And no but my cousins do lol

[Anemic0ffense]

That place is so Jewy.

 

Bigot.

[BTS]

When you can extort them into giving you free s*** that makes them 60% cheaper lol.

 

lol stereotypes

[Dick_Pole]

Well, it's almost as if charging double the price (over a smaller ISP) for the same speed internet with a ridiculously low cap in this streaming age is a bad idea.

 

Maybe their s*** shouldn't be so expensive? As a consumer, I am totally miffed as to why someone would get anything from rogers when you can get literally everything they offer elsewhere for 20-40% cheaper.

 

This is the sentiment that is shared by so many that makes Rogers' life difficult. Consumers think it's expensive, but Rogers is still not making money. Rogers couldn't possibly re-rate their base to compete with cheaper providers. The loss in revenue would be destructive and no way could they make that up with increased # of customers.

 

I know people will say "yeah but they make billions a year already". That's not the point. In the stock market world you could make a trillion dollars. But unless you're making a trillion dollars plus three percent for every year until infinity, no one will want to invest in your stock, until the vultures like Cerberus come and buy up your "distressed" business for pennies on the dollar.

 

The only reason Rogers hasn't tanked even more than it has is its good dividend yield. But if the company's EPS keeps tanking, that dividend won't be sustainable.

[Dick_Pole]

Don't get me started with the negative Jewish stereotypes when I'm already talking stock market talk....