Rogers 2006 Annual Report Download - page 45

Download and view the complete annual report

Please find page 45 of the 2006 Rogers annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

41
RO GER S CO MMU NIC AT ION S IN C . 20 0 6 ANN UA L RE POR T
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Summarized Cable and Telecom PP&E Additions
2005
Years ended December 31, 2006 Actual 2005 % Chg
(In millions of dollars) Actual Reclassified (1) Pro Forma (2) Pro Forma (2)
Cable and Internet (3)
Customer premise equipment $ 230 $ 249 $ 249 (7.6)
Scalable infrastructure 106 119 119 (10.9)
Line extensions 64 56 56 14.3
Upgrade and rebuild 10 3 3 n/m
Support capital 82 88 88 (6.8)
492 515 515 (4.5)
Rogers Home Phone 193 121 127 52.0
Rogers Business Solutions (4) 98 63 85 15.3
Rogers Retail stores 11 15 15 (26.7)
Total Cable and Telecom Additions to PP&E $ 794 $ 714 $ 742 7.0
(1) Certain prior year amounts have been reclassified to conform with the current year presentation.
(2) See “Basis of Pro Forma Information” section for a discussion of considerations in the preparation of this pro forma information.
(3) Included in Cable and Internet PP&E additions is integration expenses related to the integration of Call-Net of $28 million and $2 million, for the years ended December 31, 2006 and December 31, 2005, respectively.
(4) Included in Rogers Business Solutions PP&E additions is integration expenses related to the integration of Call-Net of $15 million and $2 million, for the years ended December 31, 2006 and December 31, 2005,
respectively.
multicultural television station in Manitoba (OMNI.11); a spiritually-
themed television station in Vancouver (OMNI.10); a specialty sports
television service licenced to provide regional sports programming
across Canada (“Rogers Sportsnet”), and Canada’s only nation-
ally televised shopping service (“The Shopping Channel”). Through
Rogers Sportsnet, Media also holds 50% ownership in Dome
Productions, a mobile production and distribution joint venture
that is a leader in HDTV production in Canada. Broadcasting also
owns The Biography Channel Canada, holds minority interests in
several Canadian specialty television services, including Viewers
Choice Canada and Outdoor Life Network, and holds a majority
interest in G4TechTV Canada. In the case of G4TechTV Canada,
Broadcasting is also the managing partner.
Media’s Publishing group (“Publishing”) publishes more than
70 consumer magazines and trade and professional publications and
directories in Canada.
In addition to its organic growth, Media expanded its business in
2006 through the following initiatives: the launch of the Canadian
edition of Hello! and Chocolat magazines; the launch of OMNI.11
Television in Winnipeg, Manitoba, the acquisition of Canadian
Parents Online, and the increased ownership of The Biography
Channel and G4TechTV Canada, to 100% and 66.67%, respectively.
On January 1, 2007, Media closed the $40 million acquisition of five
Alberta radio stations announced earlier in 2006 which brought the
total number of radio stations owned by Media to 51. The stations
are located in Edmonton and Fort McMurray, Alberta and include
licences in several small Alberta markets.
The year-over-year increase in additions to PP&E is attributable
to an increase in spending at Rogers Home Phone and Rogers
Business Solutions, offset by lower spending at Cable and Internet
and Rogers Retail.
The increase in additions to Rogers Home Phone PP&E compared to
2005 are primarily due to capacity on the cable network associated
with the year-over-year increase in subscriber additions including
related spending on customer premises equipment.
The increase in additions to Rogers Business Solutions PP&E com-
pared to the prior year is primarily due to the completion of the final
phase of the purchase of the GT assets from Bell Canada and other
network enhancements.
M E D I A
MEDIA’S BUSINESS
Media operates our radio and television broadcasting operations,
our consumer and trade publishing operations, our televised home
shopping service and the Toronto Blue Jays and Rogers Centre. In
addition to Media’s more traditional broadcast and print media plat-
forms, it also delivers content and conducts e-commerce over the
Internet relating to many of its individual broadcasting and publish-
ing properties.
Media’s Broadcasting group (“Broadcasting”) comprises 51 radio
stations across Canada (42 FM and 9 AM radio stations); two multi-
cultural television stations in Ontario (OMNI.1 and OMNI.2); a
2006 CABLE AND TELECOM ADDITIONS TO PP&E
(%)
Cable and Internet 62% Home Phone 25%
Business Solutions 12%
Retail 1%
2006 MEDIA REVENUE MIX
(%)
Publishing 24%
The Shopping
Channel 23%
OMNI TV 6%
Radio 19%
Sports Entertainment 14%
Sportsnet TV 14%