Rogers 2010 Annual Report Download - page 15

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ROGERS COMMUNICATIONS INC. 2010 ANNUAL REPORT 19
CAUTION REGARDING FORWARD-LOOKING STATEMENTS,
RISKS AND ASSUMPTIONS
This MD&A includes forward-looking statements and assumptions
concerning our business, its operations and its financial performance
and condition approved by management on the date of this MD&A.
These forward-looking statements and assumptions include, but are
not limited to, statements with respect to our objectives and strategies
to achieve those objectives, statements with respect to our beliefs,
plans, expectations, anticipations, estimates or intentions, including
guidance and forecasts relating to revenue, adjusted operating profit,
property, plant and equipment (“PP&E”) expenditures, free cash flow,
dividend payments, expected growth in subscribers and the services to
which they subscribe, the cost of acquiring subscribers and the
deployment of new services, the currently estimated financial impacts
of converting to International Financial Reporting Standards (“IFRS”)
accounting standards, and all other statements that are not historical
facts. Such forward-looking statements are based on current objectives,
strategies, expectations and assumptions, most of which are
confidential and proprietary, that we believe to be reasonable at the
time including, but not limited to, general economic and industry
growth rates, currency exchange rates, product pricing levels and
competitive intensity, subscriber growth and usage rates, changes in
government regulation, technology deployment, device availability,
the timing of new product launches, content and equipment costs, the
integration of acquisitions, industry structure and stability, and current
guidance from accounting standard bodies with respect to the
conversion to IFRS accounting standards.
Except as otherwise indicated, this MD&A and our forward-looking
statements do not reflect the potential 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 considered or announced or may occur after the date of the
financial information contained herein.
We caution that all forward-looking information, including any
statement regarding our current intentions, is inherently subject to
change and uncertainty and that actual results may differ materially
from the assumptions, estimates or expectations reflected in the
forward-looking information. A number of factors could cause actual
results to differ materially from those in the forward-looking
statements or could cause our current objectives and strategies to
change, including but not limited to new interpretations from
accounting standards bodies, economic conditions, technological
change, the integration of acquisitions, unanticipated changes in
content or equipment costs, changing conditions in the entertainment,
information and communications industries, regulatory changes,
litigation and tax matters, the level of competitive intensity and the
emergence of new opportunities, many of which are beyond our
control and current expectation or knowledge. Therefore, should one
or more of these risks materialize, should our objectives or strategies
change, or should any other factors underlying the forward-looking
statements prove incorrect, actual results and our plans may vary
significantly from what we currently foresee. Accordingly, we warn
investors to exercise caution when considering any such forward-
looking information herein and that it would be unreasonable to rely
on such statements as creating any legal rights regarding our future
results or plans. 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.
Before making any investment decisions and for a detailed discussion of
the risks, uncertainties and environment associated with our business,
see the sections of this MD&A entitled “Risks and Uncertainties
Affecting our Businesses” and “Government Regulation and Regulatory
Developments”. Our annual and quarterly reports can be found online
at rogers.com, sedar.com and sec.gov or are available directly
from Rogers.
ADDITIONAL INFORMATION
Additional information relating to Rogers, including our Annual
Information Form, discussions of our 2010 quarterly results, and a
glossary of communications and media industry terms, may be found
online at sedar.com, sec.gov or rogers.com. Information contained in or
connected to these websites are not a part of and not incorporated into
this MD&A.
1. CORPORATE OVERVIEW
OUR BUSINESS
We are a diversified Canadian communications and media company
with substantially all of our operations and sales in Canada. We are
engaged in wireless voice and data communications services through
Wireless, Canada’s largest wireless provider. Through Cable, we are one
of Canada’s largest providers of cable television services as well as high-
speed Internet access, telephony services and retailing of
communications and home entertainment products and services.
Through Media, we are engaged in radio and television broadcasting,
televised shopping, magazines and trade publications, sports
entertainment and digital media. We are publicly traded on the Toronto
Stock Exchange (TSX: RCI.a and RCI.b) and on the New York Stock
Exchange (NYSE: RCI).
For more detailed descriptions of our Wireless, Cable and Media
businesses, see the respective segment discussions that follow.
OUR STRATEGY
Our business objective is to maximize subscribers, revenue, operating
profit and return on invested capital by enhancing our position as one
of Canada’s leading diversified communications and media companies.
Our strategy is to be the leading and preferred provider of innovative
communications, entertainment and information services to Canadians.
We seek to leverage our advanced networks, infrastructure, sales
channels, brands and marketing resources across the Rogers group of
companies by implementing cross-selling and joint sales distribution
initiatives as well as cost reduction initiatives through infrastructure
sharing, to create value for our customers and shareholders.
20102009
2008
2009
200
8
201
0
$6,968
4,052
1,501
$6,654$6,335
3,9483,809
1,4071,496
Wireless Cable Media
REVENUE
(In millions of dollars)
20102009
2008
2009
200
8
201
0
$3,167$2,806
1,4371,233
147
$3,042
1,324
119142
Wireless Cable Media
ADJUSTED OPERATING PROFIT
(In millions of dollars)