Rogers CEO Joe Natale says he has ‘unequivocal support from the board’

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Rogers Communications Inc. created an executive oversight committee in the third quarter to manage interactions between the company’s senior leadership and board chair Edward Rogers, who tried and failed to oust CEO Joe Natale.

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The committee is comprised of Rogers’ sister deputy-chair Melinda Rogers-Hixon, who along with other family members blocked his move, former managing partner at PwC and Rogers director John Clappison, and long-time industry leader John MacDonald, who held roles at BCE Inc. and Allstream Business Inc., according to a management discussion and analysis published Thursday along with the company’s third quarter results.

It will advise the chair and CEO in “discharging their respective duties” as well as “establish clear protocols” in how Edward engages with senior executives, including Natale.

“The Board also resolved to undertake a comprehensive corporate governance review,” the MD&A noted.

Natale, who’s kept mum amid the controversy in the upper echelons of the business, spoke about it for the first time on a conference call following the company’s earnings release.

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“I’ve got strong, unequivocal support from the board to direct the strategy of the company after the last strategic sessions with the board to keep driving the operational initiatives … and continue to drive the improvements and momentum that you’re seeing,” Natale told analysts Thursday. “I’m feeling as comfortable as I have been in the past with the Shaw transaction, both in terms of our ability to get it approved and the synergies that stand behind it.”

Rogers’ revenues grew marginally in the third quarter from a year ago as the higher ranks of the company tried to contain Edward’s push at the end of September to force out other senior leaders and seat CFO Tony Staffieri in Natale’s post, who is spearheading a year-long regulatory process to acquire Shaw Communications Inc. for $26 billion including debt.

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The Toronto-based telecom reported that sales rang in at $3.67 billion for the three-month period ended Sept. 30. Postpaid wireless subscribers — customers who pay their bills at the end of the month — grew by 175,000, the best result in 13 years, the company said, and helped boost wireless service revenues by three per cent. Meanwhile, cable revenues grew three per cent as more internet customers moved over to higher speed and usage tiers.

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“While messy boardroom and family discussions continue to play out in the media, the Q3 results from Rogers show meaningful signs of improvement on many key metrics,” TD Securities analyst Vince Valentini wrote in a note to clients.

Net income dropped four per cent in the quarter to $490 million largely due to lower adjusted earnings before interest, taxes, depreciation and amortization. Consolidated adjusted EBITDA decreased two per cent this quarter to $1.6 billion largely due to a drop in the media line of the business. Diluted earnings per share dropped seven per cent to $0.94.

Financial Post

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