Rogers 2003 Annual Report Download - page 18

2003 Annual Report Rogers Communications Inc.
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Another significant 2003 initiative was the reformatting of
several of Rogers Media’s radio stations in key Canadian
markets. While the reformatting process at each station
created an initial drop in revenues until new ratings were
attained and also drove incremental sales and marketing
costs during the re-launches, the end results were well
worth it. In market after market – including Vancouver,
Calgary and Toronto – Rogers Media’s “JackFM, Playing
What We Want” format has created some of the top rated
and grossing radio stations in Canada.
Both the Publishing division and The Shopping Channel
also contributed to the operating profit growth in 2003.
And both expanded their operating margins year-over-
year, with The Shopping Channel leveraging its newly
constructed state-of-the-art national distribution centre,
and the Publishing division benefiting from solid cost con-
trol and productivity gains.
More powerful together
Not only does each of our businesses have solid opportu-
nities in its own right, but additional opportunities also
exist through further leveraging the strengths of our com-
plementary set of strategic assets across the Rogers Group
of Companies.
Increasingly, we are bundling and cross promoting prod-
ucts to boost Rogers’ share of wallet and customer loyalty.
We’re leveraging our extensive distribution channels and
retail presence from across the group to attract customers.
We’re utilizing common call centres and issuing common
bills to service customers who take more than one of our
products. Our Rogers Video stores serve as a window on
the community, not only generating cash flow from the
rental and sale of DVDs, VHS cassettes, games and confec-
tionery, but also functioning as sales and service outlets for
our Cable and Wireless products and services. And we’re
co-ordinating and integrating the utilization of assets and
sharing of infrastructure across the businesses to improve
efficiency, reduce cost and increase asset utilization.
But, perhaps most importantly, we’re sharing the benefit
of a common brand – the Rogers brand – a brand which
increasingly has come to stand for innovation and value in
Canadian communications, entertainment and information.
The best is yet to come
The objective we articulated for 2003 was to deliver
double-digit revenue and operating profit growth with a
corresponding reduction in capital expenditures, driven by
both operational enhancements and a disciplined approach
to our markets. Once again, the Rogers team across the
Company delivered against the financial commitments
while also providing unparalleled innovation, convenience
and value for our customers. We entered into the new
year with solid momentum and with each of our busi-
nesses increasingly well-positioned for continued success,
and so far have been pleased with our results in 2004.
We invite you to sample and subscribe to our services.
We’d welcome the opportunity to provide you with our
innovative service offerings that will entertain you, inform
you and help you communicate – all in ways uniquely
Canadian and all in ways that add choice, value and con-
venience to your life.
Thank you for your continued support, and please rest
assured that we take our responsibilities to our sharehold-
ers, customers, employees and communities very seriously.
The best is yet to come!
Edward “Ted” S. Rogers, O.C.
PRESIDENT AND CHIEF EXECUTIVE OFFICER
ROGERS COMMUNICATIONS INC.
Letter to Shareholders