Rogers 2003 Annual Report Download - page 14

Rogers Cable
Cable Television, High-Speed Internet, Video Stores
Rogers Cable passes 3.2 million homes in Ontario, New Brunswick and
Newfoundland, with 71% basic penetration of its homes passed. Rogers
Cable pioneered high-speed Internet access with the first commercial
launch in North America in 1995 and now approximately 25% of homes
passed are Internet customers. With 99% of its network digital-ready,
Rogers Cable offers an extensive array of high definition television, a
suite of Rogers on Demand services (including video on demand (“VOD”),
personal video recorders and time-shifting channels) as well as a large
line-up of digital, ethnic and sports programming. Approximately one
quarter of Rogers basic subscribers are also digital customers and
approximately 35% are Rogers Hi-Speed residential and business cus-
tomers. Rogers Cable also owns and operates 279 Rogers Video stores.
Rogers Wireless
Advanced Wireless Voice and Data Solutions
Rogers Wireless operates Canada’s largest integrated wireless voice
and data network in Canada, providing customers with the benefits of
GSM/GPRS – the world standard for wireless communications technol-
ogy. Rogers Wireless offers advanced voice and wireless data solutions
to more than 4.0 million customers across the country. Rogers Wireless
Communications Inc. (TSX: RCM.B; NYSE: RCN) is approximately 56%
owned by Rogers Communications Inc., and approximately one-third
owned by AT&T Wireless Services, Inc.
Rogers Media
Radio and Television Broadcasting, Consumer and Trade Magazine
Publishing, Televised Home Shopping
Rogers Media holds Rogers’ radio and television broadcasting opera-
tions, its consumer and trade publishing operations and its televised
home shopping service. The Broadcasting group comprises 43 radio
stations across Canada (32 FM and 11 AM radio stations), two multicul-
tural television stations in Ontario (OMNI.1 and OMNI.2), an 80%
interest in a sports specialty service licenced to provide regional sports
programming across Canada (Rogers Sportsnet), and Canada’s only
nationally televised shopping service (The Shopping Channel). The
Publishing group produces approximately 70 consumer magazines and
trade and professional publications and directories. In addition to its
more traditional broadcast and print media platforms, the Media group
also delivers content over the Internet relating to many of its individual
broadcasting and publishing properties.
Rogers Communications Inc.
The Rogers Group of Companies is Canada’s premier provider
of communications, entertainment and information services.
TSX: RCI.A RCI.B NYSE: RG
2003 2002 Change
Revenue $ 1,769,200 $ 1,596,400 10.8%
Operating profit1663,500 563,500 17.8%
PP&E expenditures 509,600 650,900 (21.7)%
Homes passed 3,215,400 3,103,200 3.6%
Basic cable subscribers 2,269,400 2,270,400 –
Basic penetration of homes passed 71% 73%
High-speed Internet subscribers 790,500 639,400 23.6%
High-speed Internet penetration of homes passed 25% 21%
Digital terminals in service 613,600 456,200 34.5%
Digital households/subscribers 535,300 401,500 33.3%
Digital household penetration of
basic cable subscribers 24% 18%
VOD-enabled homes passed 1,800,000 530,000 –
VIP customer loyalty program members 661,600 593,000 11.6%
Rogers Video stores 279 272
2003 2002 Change
Revenue $ 855,000 $ 810,800 5.5%
Operating profit1106,700 87,600 21.8%
Radio stations 43 43
Weekly Canadian radio audience reach 6,700,000 6,500,000
Ethnocultural percentage programming –
OMNI.1 and OMNI.2 >60% 60%
Number of languages represented –
OMNI.1 and OMNI.2 33 33
Number of cultures represented –
OMNI.1 and OMNI.2 40 40
Rogers Sportsnet subscribers 7,200,000 7,100,000
The Shopping Channel subscribers 7,200,000 6,800,000
The Shopping Channel items shipped 2,937,000 2,978,000
Monthly consumer magazine reach 12,100,000 12,100,000
1As defined in “Key Performance Indicators – Operating Profit and Operating Profit Margin”
section of Management’s Discussion and Analysis.
2003 2002 Change
Revenue $ 2,282,200 $ 1,965,900 16.1%
Operating profit1727,600 527,700 37.9%
PP&E expenditures 411,900 564,600 (27.0)%
Wireless voice and data – postpaid subscribers 3,029,600 2,629,300 15.2%
Wireless voice and data – prepaid subscribers 759,800 778,700 (2.4)%
Total wireless voice and data subscribers 3,789,400 3,408,000 11.2%
One-way messaging subscribers 241,300 302,300 (20.2)%
Total wireless subscribers 4,030,700 3,710,300 8.6%
Average monthly postpaid usage (minutes) 361 324 11.4%
Percentage of population network coverage (digital) 93% 93%
Average monthly postpaid voice subscriber churn 1.88% 1.98%
Average monthly prepaid voice subscriber churn 2.82% 2.23%
FY2003 Revenue – $1,769M
1. Core cable 66%
2. High-speed Internet 18%
3. Video stores 16%
FY2003 Revenue – $2,282M
1. Postpaid voice and data 84%
2. Equipment sales 11%
3. Prepaid voice and data 4%
4. One-way messaging 1%
FY2003 Revenue – $855M
1. Publishing 34%
2. The Shopping Channel 25%
3. Radio 20%
4. Television 21%
FY2003 Revenue
$4,847M
1. Cable 36%
2. Wireless 47%
3. Media 17%
FY2003 Operating Profit1
$1,449M
1. Cable 44%
2. Wireless 49%
3. Media 7%
4
2003 Annual Report Rogers Communications Inc.
12