Rogers 2003 Annual Report Download - page 15

2003 Annual ReportRogers Communications Inc. 13
In 2003, Rogers Communications delivered double-digit
growth in both revenue and operating profit through
continued subscriber growth, greater customer retention
levels, operating efficiency gains and relatively stable pricing
environments in each of our businesses. But at the core of
our success has been the continual deployment of exciting
new products and services that bring innovation and value
to Canadians, delivered over our advanced cable and wireless
networks and through our category-leading media assets.
The results of this year speak for themselves and we deliv-
ered on our commitments – with a 12% increase in revenue
to $4.8 billion, a 27% increase in operating profit to
$1.4 billion and a 24% or $298.3 million reduction in cap-
ital expenditures. With solid momentum and financial
flexibility, crisp product portfolios and sharpened focus
around marketing and sales, all three of our businesses are
well-positioned strategically in their respective markets.
The businesses have excellent operating management and
are well-financed for continued success into the future.
Taking control of the television experience
At Rogers Cable, in addition to delivering 11% revenue
growth, 18% operating profit growth and a 22% reduction
in capital expenditures, 2003 was the year when we
reversed the notion that consumers have to adjust their
schedules to suit their television. With Rogers Digital
Cable, consumers now decide the type of programming
they want to watch, when it’s convenient for them. Today,
the power of what and when to watch on television is offi-
cially in their hands, thanks to a unique and powerful
combination of services that customers simply can’t get
from satellite.
For starters, Rogers Cable subscribers can choose instantly
from over 1,000 titles, available when they want, with
Rogers video on demand (“VOD”). Everything is available,
from comedies and action movies to documentaries and
children’s programs, with new programming added every
week. Customers just order the title they want and it’s
theirs to watch as often as they like for 24 hours – with
pause, rewind and fast-forward control on their remote
control – it’s like having a DVD player and video store built
into their television. And Rogers’ on-demand program-
ming will soon evolve to include new services such as
subscription VOD services, which provide subscribers
instant access to an entire month or season of their
favourite premium programming.
With our PVR, or personal video recorder, customers basi-
cally become their own television network executive. They
can digitally record what they want to see, up to 50 hours
of programming, and play it back whenever they want.
They can record two programs at the same time or view
two shows simultaneously with picture-in-picture. They
can even pause and rewind not only the programs they’ve
recorded but live television too, continuing uninterrupted
whenever they’re ready.
Finally, with up to 20 channels of “time-shifted” television
signals from distant markets available locally, Rogers Cable
customers can watch their favourite television shows at
times that are convenient for them because they can view
them from their choice of multiple time zones across
North America.
Customers simply can’t get all these services from satellite.
Rogers Digital Cable is the clear choice when it comes to
giving consumers power over their television. And with
Rogers Digital Cable growing by more than 33% in 2003
to over 535,000 subscribers, it’s clear that consumers are
getting the message. Unparalleled selection is available
with hundreds of digital channels, including the ultimate
television viewing experience – high definition television
(“HDTV”) – with one of the most robust offerings of HDTV
in North America.
Edward “Ted” S. Rogers, O.C.
PRESIDENT AND CHIEF EXECUTIVE OFFICER
ROGERS COMMUNICATIONS INC.
Making
To our shareholders