Rogers 2007 Annual Report Download - page 6

2 ROGERS COMMUNICATIONS INC. 2007 ANNUAL REPORT
FELLOW SHAREHOLDERS,
2007 was a year of continued solid growth in customers, revenues and cash flow. At the same
time we further deleveraged our balance sheet, simplified our corporate structure and laid
the groundwork for returning increasing amounts of cash to our shareholders. While we have
much to do in continuing to reinforce our systems and capabilities, I am confident that we are
exceptionally well-positioned to carry on our growth and success.
• ThelaunchofournextgenerationHSPAnetwork–thefastest
wirelessnetworkandfirstofitskindinCanada–wasaccom-
plishedin25marketsacrossCanada.Thispowerful3Gtechnology
significantly improves wireless data download speeds and has
enabled us to offer customers new mobile multimedia services like
videocalling,video-on-demand,25channelsofmobileTV,satellite
radio-on-demand and access to more than one million download-
able songs.
• Welaunchednew“tripleplay”packagesthatcombinedigital
cable, high-speed Internet and cable telephony services in discrete
packages with easy-to-understand price points, which allow our
customers to easily choose the television, high-speed Internet and
home telephone plan that best meets their needs.
• WeopportunisticallyacquiredthefiveCitytvtelevisionstations
requiredtobedivestedbyCTVglobemedia.Thisacquisitiongave
our media business a significantly enhanced broadcast television
presence in the largest Canadian markets outside Québec and is a
terrific complement to our existing television, radio and specialty
channel assets.
• Iwasmostpleasedwhenduringthefirstpartof2007,Rogers
finally achieved investment grade credit status following upgrades
bythecreditratingagenciesFitch,Moody’sandStandard&Poor’s.
Thishadbeenanimportantgoalformanyyearsanditisasolid
recognitionofthehealthybalancesheetnowinplaceatRogers.
• Wewerealsosuccessfulingreatlysimplifyingourcorporate
structureduring2007byamalgamatingRCIwithitswhollyowned
cable and wireless holding company subsidiaries. All of our bor-
rowingsandswapsnowresideatRCI,alongwithanewunsecured
$2.4 billion bank credit facility, and this has enabled us to
measurably streamline our reporting and compliance obligations.
• For2007,theRCI.bsharesontheTSXappreciatedby31%.Aswell,
coincident with our January 2008 release of 2007 subscriber results
and the issuance of guidance for continued double-digit financial
growthfor2008,ourBoardapprovedanincreaseinRogers’annual
dividendfrom$0.50to$1.00pershareeffectivein2008.
Last year I wrote to you that our focus for 2007 would be on
delivering continued growth and increasing profitability through
innovation and disciplined execution, with an increasing focus
onmakingRogerswhatIcall“industrialstrength”–byputtingin
place the processes, platforms, people and controls that will sup-
port and secure the Company into the future. I am proud to report
that we made great strides and delivered solidly on our objectives
and targets for the year.
I am pleased with our results in 2007 and most grateful to our
thousands of employees across the country whose support and
engagement enable us to deliver for our customers and shareholders.
Thesearesomeofourmoresignificantachievementsfor2007:
• Webegan2007byimplementingatwo-for-onesplitofourshares
andraisingtheannualdividendfrom$0.075to$0.16pershare–
a113%increase.Wealsoincreasedthefrequencyofourdividend
payments by changing the dividend distribution schedule from
semi-annualtoquarterly.Astheyearprogressed,wewereableto
againraisethedividend,thistimemorethanthreefoldfrom$0.16
to $0.50 per share annually.
• Fortheyear,wedeliveredcontinuedstrongdouble-digitgrowth
inrevenue,up15%,andinadjustedoperatingprofit,up26%.
As a result, free cash flow, defined as adjusted operating profit less
integrationexpense,restructuring,PP&Eexpendituresandinterest
expense,increased118%to$1.3billion.
• Oursubscribergrowthcontinuedatsolidratesreflectinghealthy
demandinourmarkets,thequalityofourserviceofferingsand
thestrengthoftheRogersbrand.Wirelesssubscribersnowexceed
7 million and, again in 2007, we reduced customer churn and
increasedaveragerevenueperuser,whiledigitalTV,Internetand
cable telephony subscriber levels all grew at healthy rates as we
continued to increase the penetration of these products.
• Weworkedtogetherwiththewirelessindustrytolaunchnumber
portability in Canada during March 2007, allowing consumers
to change carriers while keeping their cellular phone number.
OurprocessesandsystemsatRogerswerewellpreparedforthis
complicated transition, and wireless number portability has proven
to be a seamless experience for our consumers.
CONNECTING WITH
OUR SHAREHOLDERS