Economic Environment Trend Analysis of Rogers Communications

This report provides an analysis of the economic environment impacting Rogers Communications in Canada. It examines Canada's economic growth, GDP trends, retail sector performance, and investment patterns, specifically focusing on their implications for Rogers Communications. The report also covers business confidence indices, labor productivity, and the company's strategic positioning within the Canadian market. Rogers Communications' economic footprint, its contribution to Canada's GDP, and its investments in technology and infrastructure are discussed. The analysis includes data on inventory-to-sales ratios, import/export trends in telecommunications equipment, and the company's business confidence index, offering a comprehensive overview of the economic factors influencing Rogers Communications.

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Contents
Economic Environment.........................................................................................................................2
References.............................................................................................................................................8

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Economic Environment
Rogers communications is one of 19th largest telephone operating company with a revenue of
19.7 USD. The reports of Rogers communication reveals that there is an economic footprint
in Canada that enabled 71,895 jobs and it has contributed $9.5 billion to GDP (Gross
Domestic Product). The company and employer has affected economic performances and it is
responsible to make positive impact on country and economy. The economy of Canada is
progressing well and year of 2017 was robust economic growth. Rogers communication uses
third party to enhance security of data and information to overcome cyber threats and security
threats. The business and consumer demand for wireless communication has been
continuously increasing wireless penetration rates. With Canadian Radio-television and
Telecommunications Commission, wireless code limits wireless term contracts to two years
from three years.
The service and tertiary accounts for more than 70 percent GDP. The GDP of the country lies
between and is averaged around 40,400 us dollars. During 2015, the GDP was around
43525.37 US dollars and increased to 45032.12 US dollars. Although, Canada faces long-
term challenges that are associated with ageing population and weak productivity growth.
This contribution of ageing population contributes to reduced labour utilisation resulting in
growth in potential GDP per capita. As of 2018, it is released that gross domestic product
growth is accelerated to 0.7 percent in second quarter.
The personal disposable income can be averaged 455368.71 million until 2018, The ever all-
time high reached at 1248172 million. Since last three consecutive years, from 2015 to 2018,
the growth rate has steadily increased until the beginning of 2016. The growth rate has
changed heavily in 2017 beginning. It raised from 1150000 CAD million to 1190000 CAD
million in 2017 and so on. It also continued to grow from 2015 to 2018 and it was around

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1250000 CAD million in 2018. The aggregate disposable household debt is focused on
middle-income group. Recent mortgage with the loan to value ratio of not more than 80
percent.
GDP per capita has also been constantly increasing. In 2015, it was 43,525.37 US dollars and
it increased to 45,032.12 US dollars. The retail sector will progress despite number of
headwinds. Canada`s economy expand by 2.6 percent in 2017 and approximately 2 percent in
2018 that can drive retail sales by 5.8 percent and 2.4 percent. The consumption pattern
continues to raise sales for retailers. The retail expansion activity can support the leasing
fundamental stabilisation. Technological and Demographic in shopping pattern of customers
can continue to enforce retailers and several property owners to adjust.
Upward pressure is commonly observed for built space. Luxury and international expansion
remain fairly brisk. This lead to relatively absorption of new spaces in expansion to nation`s
most dominating centres. Canada`s retail had shown growth to 4.3 percent in Aug, 2018
when as compared to previous month. CEIC calculates retail growth from monthly sales.

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(Source: Rogers communication, 2017)
The growth rate of capital investment in Canada especially in areas such as equipment,
intellectual property, and machinery that have negatively affected living standards of workers
and acknowledge economic growth. Investment opportunities in roger communication as per
the country`s situation is not very suitable because it needs investments to improve in
productivity that can benefit workers and consumers. Machinery especially as a share of total
gross fixed capital fell from 15 percent to approximately 8 percent. Whereas, the investments
in patents, innovation, and ideas have dropped from 15 percent to 11 percent.
Tax rate on capital investment from 2012 to 2015
(Source: Morguard, 2018)

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Inventory-to-sales ratio
From 2013 to till now, the ration of sales to inventory has not changed a lot. It started from
1.36 and continued to be in average 1.35 during the whole 2013. Moreover, during 2014, the
average of this ratio was approximately 1.38 and it average of this ratio kept growing, it
seemed 1.40 in 2015 and it kept growing until 2018 and reached 1.45. While specifying total
inventory to sales ratio, it is seen that the range of imports and exports between 2008- 2017,
exports of telecommunication equipment fell down in 2017 by 2,908,134 and whereas the
import has raised 12238, 17... In 2017 (CEIC, 2018).
(Source: Symbol of the government of Canada, 2018)
Business confidence index
It provides information of future developments which is based on opinion surveys in
production, stock of finished goods, and orders in particular industry. According to annual
report, (2014) the portfolio of roger communication has reached coast to coast in Canada.
City network together have affiliated stations and has broadcasted distribution to approx. 80
percent of Canada households (Rogers communications Inc., 2014). Moreover, as far as the
business confidence is concerned, the company owns 37.5 percent ownership in Maple leaf

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sports and Entertainment Ltd. (MLSE) that also owns Toronto Maple Leafs, Toronto FC,
Toronto Marlies, and it also holds real holdings. The joint venture “shomi” which is an new
subscription available both online and through cable set box with 11000 hours. The joint
operation created to operate fixed wireless telecommunication (OECD, 2018b).
(OECD, 2018a).
Productivity (labour and capital)
Here the labour productivity in business sector industries from 2015 to 2017. The labour
productivity continued to rely on value of the currency, to overcome this problem, the
authority adjusted it by taking 2007 as a base year. Labour productivity is calculated through
dividing real value added by estimation of number of hours worked.
(Source: Nova Scotia Canada, 2015)

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Investing in Rogers communication has excellent positioning in growing market with
powerful brands that do for innovation, a long record of leading growth, gaining shareholder
value, proven management, and deliver long term sustainability. More of its revenue is
generated from wireless broadband service (Cross, 2016).

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References
CEIC, (2018). Canada Inventory to Sales Ratio: sa: Manufacturing. Retrieved from:
https://www.ceicdata.com/en/canada/manufacturing-industries-total-inventory-to-
sales-ratio/inventory-to-sales-ratio-sa-manufacturing
Cross, P. (2016). Business Investment in Canada Falls Far Behind Other Industrialized
Countries. https://www.fraserinstitute.org/sites/default/files/business-investment-in-
canada-falls-far-behind-other-industrialized-countries.pdf
Morguard, (2018). Economic_Outlook_2018_Annual.pdf. Retrieved from:
https://www.morguard.com/Reports/Economic_Outlook_2017_Annual.pdf?
_ga=1.205962643.1054114034.1486570896
Nova Scotia Canada, (2015). Labour Productivity. Retrieved from:
https://careers.novascotia.ca/labour-productivity
OECD, (2018a). Business confidence index (BCI). Retrieved from:
https://data.oecd.org/leadind/business-confidence-index-bci.htm#indicator-chart
OECD, (2018b). OECD Economic Surveys: Canada 2018. Retrieved from:
https://www.oecd.org/eco/surveys/Canada-2018-economic-survey-key-policy-
insights.pdf
Rogers communication, (2017) Annual reports 2017. Retrieved from:
http://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_RCI_2017.pd
f
ROGERS COMMUNICATIONS INC, (2014). Annual report. Retrieved from:
http://www.annualreports.com/HostedData/AnnualReportArchive/r/NYSE_RCI_2014
.pdf

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Symbol of the government of Canada, (2018). The inventory-to-sales ratio is unchanged.
Retrieved from: https://www150.statcan.gc.ca/n1/daily-quotidien/181116/cg-b003-
png-eng.htm