Rogers Communications Inc. CEO Joe Natale says he has strong and unequivocal support from the board of directors as the telecom and media company announced plans to investigate its corporate governance practices.
His comments come after a boardroom fight at the family-controlled company that spilled into the public and pitted chairman of the board Edward Rogers against his sisters and mother.
Natale reportedly tried to replace Edward Rogers with the company s former chief financial officer, but faced opposition from other board directors, including his family. He has since publicly criticized the performance of the company, asserting that it could be doing better.
In the wake of the extraordinary dispute, which has even seen Toronto Mayor John Tory attend a meeting of Rogers family members and their advisers, the company says it will undertake a comprehensive corporate governance review. Edward s sister Melinda Rogers-Hixon, who is vice-chair of the board, will also join a new committee created to manage interactions between Edward and Natale.
Rest assured that I continue to work collaboratively with every member of the board, Natale said Thursday on a conference call with investors after the company reported its third-quarter earnings results.
The executive oversight committee was created to assist the chair and me — the CEO — in carrying out our respective duties and to establish clear protocols for interactions between the chair and members of management, he later added.
The Rogers board of directors met Wednesday and Natale said Thursday morning that he feels supported by the board and that the meeting included a very strong, collaborative and thoughtful discussion with all board members. He said he does not expect the dispute to affect the company s plans to acquire Shaw Communications Inc. in a $20 - billion deal $26 - billion including debt that still requires regulatory and government approval.
I m feeling as comfortable as I have in the past with the Shaw transaction, both in terms of our ability to get it approved and the synergies that stand behind it, Natale said.
Rogers said its profit, or net income, was $490 million in the three months ended Sept. 30, down 4 per cent from $512 million in the same quarter last year. Total revenue was flat at $3.67 billion.
The company said its profit was dragged down primarily by its sports-broadcast - heavy media business, which saw revenue decline compared to last year, when the NHL and NBA completed their seasons in the third quarter owing to pandemic-related schedule changes. Those seasons traditionally wrap up in the second quarter.
Game-day revenue for the Toronto Blue Jays increased as COVID - 19 restrictions were eased and fans were allowed to attend games at the Rogers Centre.