Rogers 2004 Annual Report Download - page 18

16 Rogers Communications Inc. 2004 Annual Report
LETTER TO SHAREHOLDERS
cable telephony service more quickly and cheaply, we chose
to deploy a carrier grade infrastructure with back up
powering of the network and at the home – a true primary
line telephone replacement service, where customers can keep
their existing phone numbers and all of today’s popular call-
ing features, as well as many new services that are expected
in the future such as videoconferencing and integration of
wired and wireless telephone services.
Demand for our digital cable services has not only exceeded
our expectations, it is testimony to the clear and growing
advantage cable has over satellite TV. In just about every
category, our cable offering matches or surpasses what our
competitors have to offer, and we offer interactive and on-
demand capabilities and viewing flexibility which satellite will
never match. In 2005, we are even further accelerating the
deployment of digital set-top boxes allowing ever increasing
numbers of our subscribers to experience the Rogers Digital
Cable advantage – TV as it’s never been before and available
only from Rogers.
We continued to break new ground, delivering an all-
digital channel lineup and significantly expanding our popular
array of on-demand services which includes 2,000 titles of
video on demand (“VOD”), subscription VOD for our premium
movie and children’s programming, “time-shifted” network
channels, and personal video recorders (“PVRs”). We’re also
leading our peers in the number of channels of high definition
TV (“HDTV”) programming.
Another success story for 2004 was our highly popular
Internet service offerings. In the summer of 2004, we launched
Rogers Yahoo!, a powerful new Internet experience which
combines Rogers’ broadband Internet access with one of the
industry’s leading Internet content and services of Yahoo!
It’s Canada’s ultimate broadband Internet experience, offering
a variety of access speeds, and all of the protection, control,
services and storage our customers desire.
Our Rogers Video stores continue to generate strong and
growing cash flows. Not only does the core business of rent-
ing and selling DVDs and videos remain healthy, but they have
also successfully expanded into being one of Rogers Wireless’
and Rogers Cable’s top performing sales and distribution
channels, and have diversified into quickly growing areas such
as digital photo development. Our Rogers Video stores are,
more than ever, a valuable “window on the community” for
the Rogers group.
ROGERS MEDIA COVERS ALL THE BASES
Rogers Media held strong in 2004, especially in light of linger-
ing weakness in areas of the Canadian advertising markets
delivering solid double-digit operating profit growth.
Over the course of the year, several excellent opportunities
presented themselves, which we quickly seized to further
strengthen our position in the Canadian media industry.
We increased our ownership of Rogers Sportsnet to
100% and acquired a 50% stake in Dome Productions, Canada’s
leading provider of high definition TV production facilities
and transmission services. And shortly after the year came to a
close, we scored again, teaming up with CTV/Bell Globemedia
to win the exclusive Canadian broadcast rights for the 2010
and 2012 Olympic Games.
LouLou, our newest magazine and brand label, was
launched in the summer of 2004 and has received an enthusi-
astic reception from consumers with its unique woman’s
shopping perspective on Canadian fashion and beauty.
In addition to a tremendous year of operating profit growth,
our Radio group was also awarded licences for three new
FM stations in Halifax, Moncton and St. John which we plan to
launch in the second half of 2005.
Most recently, we purchased SkyDome, the home of the
Toronto Blue Jays baseball club and Canada’s largest enter-
tainment venue, and renamed it Rogers Centre. Going
forward, our sports entertainment assets – the Blue Jays and
Rogers Centre – will be managed by Rogers Media to ensure
we fully leverage the opportunities with our TV and radio
sports broadcasting properties.
LOOKING AHEAD
Our focus in 2005 is squarely on the disciplined execution of
our strategy of profitable growth. We are targeting near
double-digit revenue growth and strong double-digit operat-
ing profit growth, as well as the smooth integration of
Microcell and the successful launch of our cable telephony
offering. In keeping with Rogers’ legacy, across the Company
we share a solid commitment to the continued deployment
of innovative products that add value to our customers’ lives
and our shareholders’ investment.
THE FUTURE BEGINS RIGHT NOW
The talent, enthusiasm and energy of our people and the
exciting businesses in which we are engaged gives me great
confidence in the future. 2005 is already well under way and
our businesses each have good momentum and are increas-
ingly well-positioned for continued success.
If you live in Canada, I invite you to sample and subscribe
to our many services – they will entertain you, inform you and
help keep you in touch with what matters most in your world.
Thank you for your investment and continued support.
The best is yet to come!
Edward “Ted” S. Rogers, OC
PRESIDENT AND
CHIEF EXECUTIVE OFFICER
ROGERS COMMUNICATIONS INC.