Rogers 2006 Annual Report Download - page 22

18 R OGE RS COM MUN I C ATIO NS I NC . 2 0 0 6 AN NUAL R EPO R T
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Before making any investment decisions and for a detailed discus-
sion of the risks, uncertainties and environment associated with
our business, see the section of this MD&A entitled “Risks and
Uncertainties”.
ADDITIONAL INFORMATION
Additional information relating to us, including our Annual
Information Form and discussions of our 2006 interim quarterly
results, may be found on SEDAR at www.sedar.com or on EDGAR at
www.sec.gov.
1 CO RPOR ATE OVERVIE W
OUR BUSINESS
We are a diversified public Canadian communications and media
company. We are engaged in wireless voice and data communica-
tions services through Wireless, Canada’s largest wireless provider
and the operator of the country’s only Global System for Mobile
Communications (“GSM”) based network. Through Cable and
Telecom we are one of Canada’s largest providers of cable televi-
sion, cable telephony and high-speed Internet access, and are also
a national, full-service, facilities-based telecommunications alterna-
tive to the traditional telephone companies. Through Media, we are
engaged in radio and television broadcasting, televised shopping,
magazines and trade publications, and sports entertainment.
We are publicly traded on the TSX (RCI.A and RCI.B), and on the
NYSE (RG).
We also hold a 50% interest in Inukshuk, a joint venture construct-
ing a pan-Canadian wireless broadband network. We hold other
interests including an investment in a pay-per-view movie service,
investments in certain specialty and digital television channels which
are accounted for by the equity method, and we hold interests in
other public and private companies for investment purposes.
For more detailed descriptions of our Wireless, Cable and Telecom,
and Media businesses, see the respective segment discussions below.
Throughout this MD&A, all percentage changes are calculated using
numbers rounded to the decimal to which they appear. Please note
that the charts, graphs and diagrams that follow have been included
for ease of reference and illustrative purposes only and do not form
part of management’s discussion and analysis.
CAUTION REGARDING FORWARD -LOOKING STATEMENTS,
RISKS AND ASSUMP TIONS
This MD&A includes forward-looking statements and assumptions
concerning the future performance of our business, its operations
and its financial performance and condition. These forward-looking
statements include, but are not limited to, statements with respect
to our objectives and strategies to achieve those objectives, as well
as statements with respect to our beliefs, plans, expectations, antici-
pations, estimates or intentions. Statements containing expressions
such as “could”, “expect”, “may”, “anticipate”, “assume”, “believe”,
“intend”, “estimate”, “plan”, “guidance”, and similar expressions
generally constitute forward-looking statements. These forward-
looking statements also include, but are not limited to, guidance
relating to revenue, operating profit, property, plant and equip-
ment expenditures, free cash flow, expected growth in subscribers,
the deployment of new services, integration costs, and all other
statements that are not historical facts. Such forward-looking state-
ments are based on current expectations and various factors and
assumptions applied which we believe to be reasonable at the time,
including but not limited to general economic and industry growth
rates, currency exchange rates, product and service pricing levels and
competitive intensity, subscriber growth and usage rates, technol-
ogy deployment, content and equipment costs, the integration of
acquisitions, and industry structure and stability.
Except as otherwise indicated, this MD&A does not reflect the poten-
tial impact of any non-recurring or other special items or of any
dispositions, monetizations, mergers, acquisitions, other business
combinations or other transactions that may be announced or occur
after the date of the financial information contained herein.
We caution that all forward-looking information is inherently
uncertain and that actual results may differ materially from the
assumptions, estimates or expectations reflected in the forward-
looking information. A number of risk factors could cause actual
results to differ materially from those in the forward-looking
statements, including but not limited to economic conditions, tech-
nological change, the integration of acquisitions, the failure to
achieve anticipated results from synergy initiatives, unanticipated
changes in content or equipment costs, changing conditions in the
entertainment, information and communications industries, regu-
latory changes, changes in law, litigation, tax matters, employee
relations, pension issues and the level of competitive intensity
amongst major competitors, many of which are beyond our control.
Therefore, should one or more of these risks materialize, or should
assumptions underlying the forward-looking statements prove incor-
rect, actual results may vary significantly from what we currently
foresee. Accordingly, we warn investors to exercise caution when
considering any such forward-looking information herein and to not
place undue reliance on such statements and assumptions. We are
under no obligation (and we expressly disclaim any such obligation)
to update or alter any forward-looking statements or assumptions
whether as a result of new information, future events or otherwise,
except as required by law.
200620052004
$4,580$3,860$2,689
3,2012,4921,946
1,2101,097957
Wireless Cable and Telecom Media
REVENUE
(In millions of dollars)
200620052004
$1,969$1,337$950
890765709
151128115
Wireless Cable and Telecom Media
OPERATING
PROFIT
(In millions of dollars)