Future of cable TV still bright, Rogers CEO says

Rogers Communications Inc.’s new chief executive officer said he sees a huge opportunity for resurgence of its traditional cable business, even as its wireless division continues to steal the spotlight for strong performance.

Rogers’ stock price hit a record high Thursday after it reported its first set of quarterly results since CEO Joe Natale took over in April. Better-than-expected performance in wireless impressed both analysts and the market, despite subdued cable results. But Natale believes changes in video consumption and advancements in digital homes will reinvigorate the cable business, which has flattened under pressure from cord cutting and competition from BCE Inc.’s internet protocol television platform.

“For the last few years, everyone believed we’re in the ninth inning of the cable business … I fundamentally believe we’re actually in the second or third inning,” Natale said. “I call it the resurgence or the revenge of the cable business.”

Rogers sank $484 million into creating its own IPTV platform to compete with Bell’s, but ultimately abandoned the project late last year. Instead, it plans to launch Comcast’s X1 platform in early 2018. Shaw Communications Inc. also turned to X1 after its IPTV plans failed.

Natale said Rogers does well going to head-to-head with its main competitor given its gigabit-speed internet offering, which offers faster speeds, where Bell has yet to build fibre-to-the-home connections. Bell is investing billions in these ultrafast connections.