Rogers 2005 Annual Report Download - page 92

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88 ROGERS 2005 ANNUAL REPORT . MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(2) Supplemental Media detail:
2006
(In millions of dollars) 2 0 0 5 Range
Revenue
Core Media $ 937 $ 1,000 to $ 1,030
Sports Entertainment 160 165 to 175
Operating Profit
Core Media $ 139 $ 145 to $ 155
Sports Entertainment (11) (30) to (35)
(3) Before RCI corporate expenses and management fees paid to RCI, and excluding costs associated with the integration of Fido and Call-Net.
(4) Supplemental Wireless detail:
Excludes one time expenditures related to the integration of Fido in 2005 as well as up to $80 million of PP&E expenditures and up to
$20 million in operating losses related to the Inukshuk fixed wireless initiative in 2006.
2006
(In millions of dollars) 2 0 0 5 Range
PP&E expenditures
Wireless (excl. HSDPA) $ 492 $ 450 to $ 475
HSDPA – 150 to 175
(5) Does not include Corporate or Media PP&E expenditures or the PP&E expenditures component of the Call-Net integration. Corporate PP&E
expenditures will include costs associated with the January 4, 2006 purchase of the Greater Toronto Area business campus by RCI.
(6) Estimated 2006 breakdown: approximately 70% to be recorded as PP&E expenditures and approximately 30% to be recorded as operating
expense.
MA T E RI A L A SS U M PT I ON S
Certain key macro assumptions were made in the preparation of our annual 2006 guidance, the most significant of
which include:
• Canadian GDP growth of approximately 3% for 2006, with the Canadian Consumer Price Index rising modestly from
the current level of approximately 2%;
• A relatively stable foreign exchange rate of C$1.18 = US$1.00 based upon a general consensus of economists’ currency
forecasts;
• Growth in the overall Canadian telecommunications market in 2006 modestly higher than GDP growth;
• A revenue growth rate for the Canadian wireless industry of approximately 13% to 15% which is slightly below the
2005 growth rate, with a wireless industry penetration gain similar to modestly below the gain in 2005;
• Revenue growth rates for the overall Canadian video and Internet markets equal to or slightly lower than the 2005
growth rates of approximately 6% and 12%, respectively;
• A modest decrease in the overall Canadian residential and business voice telecommunications markets consistent with
2005 due to competitive pricing pressures, wireless substitution, and other factors;
• No material changes in the overall Canadian advertising market; and
• No significant degree of consolidation, fragmentation or other such changes in the Canadian communications or
media industries.