Rogers Communications seeks to sell 8 digital and print assets in a package deal

Rogers Communications Inc. is seeking a buyer for a package of eight of its digital and print magazine assets, including Maclean’s, Canadian Business, MoneySense, Today’s Parent, Hello! Canada, Flare and Chatelaine’s French and English editions − as well as its custom-content group according to a story in the Globe and Mail.

The company is looking for a comprehensive deal, including all of the publishing assets on offer, rather than selling them individually.

The Canadian Imperial Bank of Commerce has been retained to manage the sale.

The magazine sale process comes after Rogers Media laid off 75 full-time employees in June, reducing the size of its digital content and publishing staff by a third. Rogers said at the time that the cost-cutting was designed to keep its publishing business “sustainable.” If a sale were to occur, Rogers would still be in the digital publishing business, largely with websites and apps related to its broadcast businesses, such as CityNews and Sportsnet. Rogers faces challenges seen across the industry, as growth in digital advertising has not been sufficient to make up for steep declines in print revenues.

According to information Rogers provided to potential buyers, the magazines had $12-million in print advertising revenue last year, and $9.5-million in digital ad sales; print circulation accounted for $16.5-million in revenue while digital circulation was roughly $600,000.

Rogers is laying off 75 full-time publishing and digital staff

[This post has been updated] Rogers Communications is cutting its publishing and digital staff by a third -- with a total of 75 full-time employees laid off. 

The casualties included Steve Maich, the senior vice-president of digital publishing and content and Lianne George, the editor-in-chief of Chatelaine magazine, [Update: both of whom resigned.] (It may seem ironic that George was honoured just last week as the Editor Grand Prix at the National Magazine Awards.)

According to the Rogers announcement the layoffs are the latest effort to overhaul the company's magazine strategy, yet another attempt to scale back its publishing division in the face of a loss of ad revenues, although the company said the changes won't mean any titles discontinued or have an impact on the quality of content or frequency of print issues. (Rogers ended the print editions of Canadian Business, Flare, MoneySense and Sportsnet magazines in 2016 and reduced the print frequency of Maclean's, Chatelaine and Today's Parent.) 

“The publishing industry continues to face challenges, as print declines outpace digital growth,” Andrea Goldstein, senior director of communications for Rogers Media, said in a statement. “We have reorganized our digital content and publishing structure to reflect the headwinds the industry is facing and make the business sustainable.”

Rogers makes some more in 2nd quarter, but spends more, too

Rogers Communications reports for its 2nd quarter a 6% revenue increase for media, largely attributed to Sportsnet and the success of the Toronto Blue Jays. But, according to a company release, there was a 7% increase in costs in the quarter in the media division (which includes magazines), compared with the same quarter last year, largely due to lower advertising across radio, publishing and broadcast TV. Operating expenses were attributed to highers sports-related costs, mitigated by cost savings from job cuts in conventional broadcast TV and radio.

Year to date, the 29% decrease in revenue were primarily a result of lower conventional advertising revenue in the first quarter of 2016. [Click to enlarge]

Rogers reports improved first half 2015 financial results

Rogers Communications reports overall 2nd quarter financial results with revenue up 6%. The company's media division -- which includes magazine publishing -- saw operating results increased 24% to $1.05 million, but attributed mostly to the company's National Hockey League (NHL) licensing agreement together with growth at Sportsnet, the Toronto Blue Jays, and Next Issue Canada. Adjusted operating profit was up 5.5%, up 1.9% from the same six months last year. The company reported continued softness in print advertising and conventional broadcast TV, but also lower operating costs and improved efficiency across various media divisions.

Bonnie Brooks: once edited Flare now on the Rogers board

A former editor of Flare magazine who moved from publishing in 1996 into retailing and most recently wound up as CEO of Hudson's Bay Company is being appointed to the Rogers Communications Inc. board (which ultimately owns Flare) to replace Toronto mayor John Tory. 

Brooks, who was the first woman CEO at HBC, was editor of Flare from 1994-96 before becoming an executive with Holt Renfrew. Then she was president of the Lane Crawford Joyce Group in Hong Kong in 2003 and then joined The Bay in 2008. She's currently chair of the Royal Ontario Museum Board and sits on the boards of Empire Company Ltd. (Sobey's), RioCan Real Estate Investment Trust and Abercrombie and Fitch.

Vice Media and Rogers team up in $100 million content creation hub in Toronto

Rogers Communications and Vice Media have entered into a $100 million joint venture partnership to create a multimedia studio in Toronto that will produce content for mobile, web and TV, starting in 2014. The focus is the 18-34 market, according to a story in Marketing magazine, creating news, drama, documentaries and original programming built around food, sport, fashion and tech.

The two companies say the Vice Canada Studio is intended to address the “dramatic shift” in media consumption, with nearly 70% of adults 18-24 now receiving news and entertainment from mobile and digital devices, compared with only 30% of adults 40+.

The content will include

• Daily mobile blasts of Canadian-made news and information, including exclusives for Rogers and Fido customers;
• Vice TV Formats, a new slate of TV formats developed, produced and made with Canadian talent;
• Vice Plus, mobile adaptations of Vice’s new and best-known franchises, including the environmental show Toxic and F*ck That’s Delicious, starring rapper and former chef Action Bronson;
• Pilots for new Vice shows

Vice Media co-founder Shane Smith said in a release

 “It was 20 years ago, deep down in the port of Old Montreal, that we set out to try and make a magazine that didn’t suck, This year we return to the homeland, all our hard lessons learned, to build from scratch a completely horizontally and vertically integrated ultra-modern media entity.Essentially we are building a content creation hub that will generate premium video for a cutting edge media company." 

Vice got its start in Montreal in 1994 as an alternative magazine and has since become major international media player.

Rogers media arm saw 15% increase in revenue and 12% profit increase in first 6 months

The media division of Rogers Communications Inc. saw a 15% increase in operating revenue and a 12% increase in operating profit in the first six months of 2011 compared with the same period a year ago, according to information released from the company. (The media division includes publishing , sports entertainment, radio and digital media. Magazine results are not broken out.) Six-month operating revenue for the division was $776 million and profit was $67 million.

The company attributed the improved results to increased advertising sales and new subscriber fees, noting that there was a slight decline in revenues from The Shopping Channel.

Over all, Rogers reported $6.1 billion in revenues and net income of $890 million for the six months ended June 30.Wireless contributes about 57% of over all revenues, cable 31%, media about 12.7%.

Rogers titles will be providing content for new 24-hour news TV channel

Maclean's and other Rogers Publishing magazines will be tapped for content for the new 24-hour news television channel being launched by Rogers Communications Inc. CityNews Channel will be launched in October, a complement to the company's 24-hour news radio station 680 News and Citytv. The new channel will be going up against the recently launched Sun News as well as established all-news outlets CTV News Channel and CBC News Network and Toronto-only CP24.

“We're taking the number one news radio format in Canada, 680 News, and bringing it to television under the brand CityNews Channel,” president of Rogers Broadcasting, Scott Moore, said in a statement Monday.
“By incorporating our trailblazing and trusted news brands from CityNews, 680 News, and publishing – including Canada’s most trusted news magazine, Maclean’s – CityNews Channel is poised to be the destination local news channel.”

Rogers says publishing growth now positive as over all Q1 net income up 21% from last year

Rogers Communications has reported net income for the second quarter of 2010 of $451 million US or 78 cents per share. This was up 21% from the same period last year. Revenue was up 5% to $3.03 billion US. Revenue growth was 7% for the wireless network, 4% for cable and 8% for media. 

For the six months to date, media revenue, which includes consumer and trade magazine publishing, television, Sportsnet, radio, The Shopping Channel and sports franchises including the Toronto Blue Jays,  was $697 million, up $30 million from the same quarter a year ago. For the first two quarters, operating profit was $67 million, up $47 million from the comparable six months the year before, or about 10.6%/ The company reported: 

"Publishing is also beginning to experience positive growth in advertising revenues for the first time in several quarters." 

However, the consolidated financial statements do not break out magazine data.

Rogers Communications up in profit and dividend; media division has 6% revenue decline

Rogers Communications Inc.'s media division experienced a 6% revenue decline in the year ending December 31, 2009. The division, which includes the company's magazines and as well as television properties like the Shopping Channel, the Outdoor Life Network, Omni and CityTV and other enterprises like the Toronto Blue Jays, had operating revenues of $1.407 billion, compared with $1.496 billion last year. There were no details published for consumer and trade magazines.

The company's release noted that media operating expenses had also been brought down by 5%, but after various restructuring expenses and other extraordinary adjustments, operating profit had dropped $69 million from $142 million in 2008 to $73 million in 2009.

For Rogers Communications as a whole, including its cable and wireless business, which dominates company results, adjusted operating profit was up 8% from $4.060 million to $4,388 million. Income per share increased 27% to $2.51. The 10% increase in the companies annual dividend met analysts' expectations, as did the $1.35 billion share buyback.

"Against a tough economic backdrop, we delivered solid financial and operating results during the fourth quarter," said Nadir Mohamed, President and Chief Executive Officer, Rogers Communications Inc. "Importantly, the results show a healthy balance of growth, cost control, improved churn and a double-digit increase in cash flow generation."

"2009 was a solid year for Rogers, we returned increasing amounts of cash to shareholders and we delivered on our commitments," continued Mr. Mohamed. "Looking ahead, we are extremely well positioned with a terrific asset mix and strong customer demand for our products and services. The dividend increase and the renewal of our share buyback program for 2010 underline our continued confidence in the strategic position of the Company."

Rogers Media, including mags, see 73% profit drop in Q1 2009

Rogers Media, which encompasses Rogers Publishing, saw a 73% drop in operating profit and a 7% drop in operating revenue in the first three months of 2009, according to figures released by the company. Revenue was $284 million in Q1, compared with $307 million in the same quarter a year ago. Operating profit was $6 million, compared to $22 million.

The company attributed the results primarily to the soft advertising market at its publishing, television and Shopping Channel divisions. No breakout is provided for its 70 consumer and trade magazines.

In addition to its magazines, Rogers Media includes Rogers Broadcasting (52 radio stations, the Citytv television network, Sportsnet, The Shopping Channel, OMNI television stations, several Canadian specialty channels, the Toronto Blue Jays Baseball Club and the Rogers Centre.

Overall, buoyed by results in the Rogers wireless and cable arms, Rogers Communications Inc. had a 5% growth in operating revenue ($2.747 billion in Q1 2009 compared with $2.61 billion in 2008). Wireless network revenue was strong and grew by 8% year over year. The "significantly higher" additional acquisition and retention costs of, among other things, the the company's smartphone network -- with approximately 145,000 new customers and 360,000 activations by new and returning customers -- resulted in about a 5% decline in net, adjusted income to $256 million in 2009.

Rogers sells Ontario Out of Doors to Ontario Federation of Anglers and Hunters

Rogers Publishing has sold Ontario Out of Doors magazine to Ontario Federation of Anglers and Hunters. The magazine has been closely associated with OFAH and the magazine is said to be going to carry on with much the same management team, according to a memorandum to staff from Marc Blondeau, Senior Vice-President, Consumer Publishing.

Originally founded in 1969, OOD was purchased by Maclean Hunter in 1985. The December 2008 issue will be the final one produced by Rogers, Blondeau said.

I would like to stress that this decision was made following careful review of our long-term business strategy. We remain focused on growing our portfolio of brands in a strategic manner. We have absolutely no plans to sell any other properties.

Ontario Out of Doors principal competitor has been Outdoor Canada magazine, published by Transcontinental Media.

Rogers increases dividend, buys back shares

[UPDATE: Rogers Communications Inc. stock dropped 6% Monday, despite the company doubling its dividend, announcing it intends a 15% stock buyback and making a rosy forecast for 2008. Investors are apparently skittish about a decline in the uptake of wireless services, despite Rogers adding 183,000 net new wireless subscribers in the past 6 months.]

Rogers Communications Inc., Canada's largest magazine publisher and second only to Transcontinental Inc. in circulation of consumer magazines, has announced that it is doubling its shareholders' dividend, planning to buy back as much as 15% of its stock and looking forward to a 2008 consolidated revenue of as much as $11.5 billion and a profit in the range of $4 billion.

Of course this is just a forecast but the company's huge wireless, cable and TV enterprise is apparently doing particularly well. Hence the confidence to promise a dividend of $1 a share. The shares were trading at just under $42 this morning.

"Our plan for 2008 strikes a healthy balance between the continued delivery of profitable growth, the return of increasing amounts of our growing free cash flow to shareholders, and the investments that will help assure such growth continues well into the future," said CEO Ted Rogers.