Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI) released its quarterly earnings earlier this month. For the second straight quarter, the company's top line struggled to grow as consumers continued to transition to unlimited data plans for their mobile phones, resulting in a decrease in overage revenue.
It's a trend that Rogers CFO Tony Staffieri expects to continue until the second half of the year, at which point he believes the company will start to see positive year-over-year sales growth.
Revenue was flat for the last quarter of the year and net income declined 7%. The results weren't a whole lot better for the full year, with no sales growth and profits down by 1%. In 2018, Rogers had a better year with its revenue rising more than 6.7% and the year before that sales grew by 3.2%.
Given how competitive the market is for wireless consumers, the potential for growth in the segment is limited. But with 5G technology around the corner and Rogers playing a big role in its deployment in Canada, it could generate a lot more growth as consumers opt for the latest-and-greatest technology.
In 2019, shares of Rogers fell 8% as lacklustre performances weighed down the telecom giant. But with Rogers trading at a very reasonable 16 times earnings, it could make the stock an attractive buy.
Not only is the company an industry leader but with an exciting growth opportunity ahead, the stock could have a lot of upside. And with a dividend yielding 3% per year, the stock ticks the boxes for value, growth, and dividend investors.
