Winners and Losers

Jacob Lorinc

Equitable Group profits from homeowners’ mortgage binge, while Rogers fights to save a merger gone awry.

WINNERS Exchange Income Corp.

The Winnipeg-based holding company — which invests in companies in the aerospace, aviation and manufacturing sectors — reported its strongest quarter to date, with revenue at $400 million. The strong results were buoyed by the completion of two acquisitions: Northern Mat & Bridge, which produces energy-related products for oil and gas companies in Alberta, and Advanced Paramedic Ltd., which provides emergency services and medical training for the aviation industry.

Equitable Group Inc.

Canadians’ mortgage binge is big business for private lenders. Equitable Group Inc., which specializes in commercial and residential real estate lending services, reported its strongest-ever quarterly earnings last week. Compared with this time last year, the company’s earnings grew by 27 per cent to reach $87.9 million in the first quarter. But headwinds await: As interest rates rise, private lenders will likely find it difficult to attract the same influx of clients as they received during the pandemic.

Telus Corp.

While two major telecommunications companies were toiling with a merger gone awry, Telus was reporting strong earnings. Shareholders continued to reward the Canadian telecom giant this week following a 21 per cent profit jump for its first quarter this month.

LOSERS Rogers Communications Inc.

The drama at Rogers got a second wind this week after the company said that Canada’s Commissioner of Competition is planning to oppose their proposed $26-billion takeover of Shaw Communications, announced early in 2021. Both companies agreed to extend the takeover deadline to late July instead of June. The deal would combine two behemoth cable networks if it succeeds — but that’s an increasingly big “if.”

Quebecor Inc.

The company led by Canadian billionaire Pierre Karl Péladeau popped up in the Rogers drama this month as well, when Rogers asked Quebecor to bid for Shaw’s wireless business, Freedom Mobile. But the news was not enough to distract from meagre firstquarter earnings, which saw revenue drop by $3.1 million, to $1.09 billion, from the same period of 2021.

Suncor Energy Inc.

A booming quarter for Suncor wasn’t enough to distract investors from a pesky shareholder battle at the Canadian energy company. While earnings increased to $2.95 billion in the first quarter — up a whopping 259 per cent from last year — activist shareholder group Elliott Investment Management is calling for a shakeup in the Suncor boardroom and a management review after operational mishaps. A string of fatalities at Suncor work sites in recent years has the investment group worrying about deeper problems within the company, which has been the worst-performing large Canadian oilsands producer over the past year.