Rogers 2006 Annual Report Download - page 7

Our voice-over-cable telephony service launched in mid-2005,
Rogers Home Phone, is becoming another great growth story. By
the end of 2006, we expanded our cable telephony offering across
90% of our cable footprint and, by virtue of our 2005 acquisition
of Call-Net, we are able to offer a circuit-switched telephony
product in major Canadian cities outside of our cable footprint.
By year’s end, our residential telephony subscriber base had grown
to more than 715,500, and we expect that this service – which is
highly complementary to our other cable, Internet and wireless
products – will continue to grow rapidly in 2007.
In addition to strong organic growth at Rogers Media during
2006, we recently extended our portfolio of radio stations with
the acquisition of five radio stations in Alberta and increased
our ownership in two television stations, Biography Canada and
G4TechTV Canada. On the publishing side, we enhanced our
collection of leading consumer magazines with the launch of
Hello!, a celebrity/personality magazine, and Chocolat, a shopping
magazine for home decor.
WINNING WITH A QUADRUPLE PLAY
Putting innovation to work at Rogers goes beyond products and
services. We’re also bringing innovation to the way we run our
businesses and leverage our strengths. In last year’s annual report,
I talked about how we are drawing on the combined strengths of
our wireless, cable, Internet and telephony capabilities to deliver
the Rogers Quadruple Play.
Harnessing our collective resources brings simplicity and greater
value to our customers while enabling us to leverage our strong
brand and lower operating costs over time. Our bundled
communications service offerings are one example of innovative
integration. Another powerful example is how we were able to
execute around Rogers’ exclusive broadcast rights for the 2006
World Cup of soccer – the single most popular sporting event on
the planet. During the summer of 2006, our wireless, cable and
media businesses rallied around our World Cup rights and
combined their broadcast and distribution platforms to create
a decisive force in the market across Canada.
“ While 2006 was a great year for Rogers – and
I’m extremely pleased with the results – there is
so much more to accomplish. As 2007 unfolds, our
focus remains on delivering profitable growth
through innovation and disciplined execution.”
BRINGING IT ALL TO BUSINESS
One of the advantages of our Call-Net acquisition was that it gave
us a platform upon which to accelerate the growth of Rogers
Business Solutions. This group brings together the innovative com-
munications services of Rogers Wireless, Rogers Cable and Telecom,
and Rogers Media into one sales and service channel dedicated to
meeting the voice, data networking, Internet connectivity and wire-
less needs of the Canadian business market. Formed on January 1,
2006, this group has worked quickly to differentiate itself by pro-
viding a seamless IP-based network for Canadian businesses which
leverages the many network assets of Rogers Communications.
LOOKING AHEAD
While 2006 was a great year for Rogers – and I’m extremely
pleased with the results – there is so much more to accomplish.
As 2007 unfolds, our focus remains on delivering profitable
growth through innovation and disciplined execution. As is our
heritage, we will continue to focus on deploying unique and
innovative communications and entertainment products that add
convenience and value to our customers’ lives. However, as we
continue to gain scale, I am also increasingly focused on making
Rogers what I call “industrial strength” – by putting in place the
processes, platforms, people and controls that will support and
secure the Company into the future.
There is plenty of heavy lifting ahead as we work to strengthen
our position as the leading wireless provider in Canada, expand our
presence in the business segment and drive top and bottom-line
growth in local telephony, digital cable and our media businesses.
We will continue to explore opportunities for our operations to
work together to extend the power of our brand and maximize
efficiencies. And we will target double-digit revenue and operating
profit growth in 2007 while continuing to delever our balance sheet.
If you live in Canada, I invite you to sample and subscribe to our
many services. They will entertain you, inform you and help you
keep in touch with what matters most in your world. Wherever
life takes you, Rogers will be there, innovating to enrich your life
and the lives of generations of Canadians to come.
Thank you for your investment,
confidence and continued support.
The best is yet to come!
Edward “Ted” S. Rogers, OC
President and
Chief Executive Officer
Rogers Communications Inc.