Rogers → Re: IPv6: Coming to a Rogers Near You in 2035

Rogers has a MOUNTAIN of DEBT .... read Rogers financial statements .... one big mistake can sink them very quickley.

Yes rogers makes money .... good thing that they do but based on their MOUNTAIN of DEBT they have very little room unless they strike deals with the likes of Bell Media etc.

I was hoping somebody would bring that up.

So, my final thoughts:
Obviously Rogers is a sinking ship. No business on this planet could survive employing the tactics that Rogers is infamous for. They brought it on themselves.

All the more reason that the Canadian Broadband landscape needs a major overhaul. Who will step up to the plate? Only time will tell.

I rest my case. Thanks......

They DO survive. They CAN survive. They WILL survive.

Their debt is related predominantly to their sports interests ... TML, Skydome, BlueJays etc etc. But they can be money makers too. They have the revenue and profitability to support that level of debt.

Mountains of debt do not equal revenue and profitability in any way, shape or form. Minus 2 plus minus 2 do not equal plus one.

Debt may equate to a bigger government tax writeoff but consumer confidence is usually based on actual company profitability and current company performance levels.

IMHO Rogers gets a big fail in both categories in the opinion of thousands of their customers who are tired of being subjugated by Rogers with no viable alternative.

Hence the basis for this entire thread.....Thanks..........

No ... just as the bank wants to know if you have enough income when they give you a loan or mortgage to gauge how much they are prepared to lend you, so it is with companies ... they look at the revenue stream and the profitability and projections and determine whether they can support that debt.

About 7 years ago, Rogers credit rating was put to "garbage" because their profitability and revenue (APPU and ARPU) were too low but they have since improved.

To quote the FP in 2007

"Standard & Poor’s said that it raised its long-term corporate credit ratings on Rogers Communications Inc. (RG) and its wholly-owned subsidiaries to BBB- from BB+.

This reflects the company’s strong performance and cash flow growth, its ability to absorb a meaningful acquisition while keeping to S&P’s debt leverage target and finally, its asset base growth that has led to a focus on medium-term internal growth, the ratings agency said in a statement Tuesday. "

It's also worth noting that Rogers does have considerable cash, but they prefer to invest that and borrow because they can get inverted interest rates. (In fact, I'm doing very similar right now ... I can borrow a lot cheaper than I'm getting on my investments even after taking tax into account!)

You're very funny

Rogers can service their debt and are profitable so far. Rogers cash flow is also positive and has been positive for some time. From what I can tell their banks and bond holders are strong supporters otherwise they would not be able to build mountains of debt.

You need to learn how to read financial statements ... No easy task but you can do it.

that's it folks. I've said all I had to say.......