Rogers 2003 Annual Report Download - page 20

2003 Annual Report Rogers Communications Inc.
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2003 Management’s Discussion and Analysis
For the purposes of this discussion, the operations of Rogers Communications Inc. (“Rogers”, “RCI” or the “Company”) and
the financial results relating to its operations have been reported in three segments:
• “Cable” or “Rogers Cable”, which refers to Rogers’ wholly owned subsidiary Rogers Cable Inc.;
• “Wireless”, “Rogers Wireless” or “RWCI”, which refers to Rogers’ 55.8% owned subsidiary Rogers Wireless
Communications Inc.; and
• “Media” or “Rogers Media”, which refers to Rogers’ wholly owned subsidiary Rogers Media Inc.
RCI, Cable, Wireless and Media are collectively referred to as the “Rogers Group of Companies”.
This discussion should be read in conjunction with the audited Consolidated Financial Statements and Notes
thereto for 2003.
The financial information presented herein has been prepared on the basis of Canadian generally accepted account-
ing principles (“GAAP”). Please refer to Note 22 to the Consolidated Financial Statements for a summary of differences
between Canadian and United States (“U.S.”) GAAP.
Throughout this discussion, percentage changes are calculated using numbers rounded to the decimal to which
they appear. All dollar amounts are in Canadian dollars unless otherwise indicated.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This Management’s Discussion and Analysis includes forward-looking statements concerning the future performance of
the Company’s business, its operations and its financial performance and condition. When used in this Management’s
Discussion and Analysis, the words “believe”, “anticipate”, “intend”, “estimate”, “expect”, “project” and similar expres-
sions are intended to identify forward-looking statements, although not all forward-looking statements contain such
words. These forward-looking statements are based on current expectations. The Company cautions that all forward-
looking information is inherently uncertain and actual results may differ materially from the assumptions, estimates or
expectations reflected or contained in the forward-looking information, and that actual future performance will be
affected by a number of factors, including economic conditions, technological change, regulatory change and competitive
factors, many of which are beyond its control. Therefore, future events and results may vary significantly from what the
Company currently foresees. The Company is under no obligation (and expressly disclaims any such obligation) to update
or alter the forward-looking statements whether as a result of new information, future events or otherwise. For a more
detailed discussion of factors that may affect actual results, see discussions under “Cable Risks and Uncertainties”,
“Media Risks and Uncertainties” and “Wireless Risks and Uncertainties” below.
OVERVIEW
Company
Rogers is a diversified national Canadian communications company, which is engaged in cable television, broadband
Internet (“Internet”) access and video retailing through its wholly owned subsidiary Rogers Cable, in wireless voice, data
and messaging services through its 55.8% owned subsidiary Rogers Wireless, and in radio and television broadcasting,
televised shopping, consumer magazines and trade and professional publications through its wholly owned subsidiary
Rogers Media. In addition, Rogers holds other investment interests, including an interest in the Toronto Blue Jays
Baseball Club (the “Blue Jays”) and in a pay-per-view movie service as well as in several digital specialty channels, all of
which are accounted for by the equity method.
COMPANY STRATEGY
The Company’s business strategy is to maximize revenue, operating profit and return on invested capital by maintaining
and enhancing its position as one of Canada’s leading national diversified communications and media companies. Rogers’
objective is to be the preferred provider of communications, entertainment and information services to Canadians. The
Company seeks to take advantage of opportunities to leverage its networks, infrastructure, sales channels and marketing
opportunities across the Rogers Group of Companies to create value for its customers and shareholders.
RCI helps to identify and facilitate opportunities for its cable, wireless and media businesses to create bundled
product and service offerings, as well as for the cross-marketing and cross-promotion of products and services to increase
sales and enhance subscriber loyalty. The Company also works to identify and implement areas of opportunity for its
businesses that will enhance operating efficiencies and capital utilization by sharing infrastructure, corporate services
and sales distribution channels. During 2003, the sharing of call centre and information technology infrastructure enabled
the Company to form an integrated Cable and Wireless customer service group serving the needs of customers subscrib-
ing to both Cable and Wireless services. The Company also offers a combined bill for customers who subscribe to multiple
services from across the Rogers Group of Companies.