Rogers 2011 Annual Report Download - page 25

MANAGEMENT’S DISCUSSION AND ANALYSIS
Wireless and Cable Operations, respectively. In addition, certain
intercompany transactions between the Rogers Business Solutions
(“RBS”) segment and other operating segments, which were
previously recorded as revenue in RBS and operating expenses in the
other operating segments, are now recorded as cost recoveries in RBS
beginning January 1, 2011. While there is no change to the
consolidated results or to the adjusted operating profit of RBS, as a
result of this second change, the reported revenue of RBS is lower as
intercompany sales are no longer included. Comparative figures for
2010 have been reclassified to conform to the current year’s
presentation of both changes discussed above.
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 ASSUMPTIONS
This MD&A includes “forward-looking information” within the
meaning of applicable securities laws and assumptions concerning,
among other things our business, its operations and its financial
performance and condition approved by management on the date of
this MD&A. This forward-looking information and these assumptions
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,
anticipations, estimates or intentions. This forward-looking
information also includes, but is not limited to, guidance and
forecasts relating to revenue, adjusted operating profit, property,
plant and equipment expenditures, cash income tax payments, 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, and all other statements that are not
historical facts. The words “could”, “expect”, “may”, “anticipate”,
“assume”, “believe”, “intend”, “estimate”, “plan”, “project”,
“guidance”, and similar expressions are intended to identify
statements containing forward-looking information, although not all
forward-looking statements include such words. Conclusions,
forecasts and projections set out in forward-looking information are
based on our current objectives and strategies and on estimates and
other factors and expectations and assumptions, most of which are
confidential and proprietary, that we believe to be reasonable at the
time applied, but may prove to be incorrect, including, but not
limited to: general economic and industry growth rates, currency
exchange rates, product pricing levels and competitive intensity,
subscriber growth, usage and churn 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.
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 the
statement containing the forward-looking information is made.
We caution that all forward-looking information, including any
statement regarding our current objectives strategies and intentions
and any factor, assumptions, estimate or expectation underlying the
forward-looking information, is inherently subject to change and
uncertainty and that actual results may differ materially from those
expressed or implied by the forward-looking information. A number
of risks, uncertainties and other factors could cause actual results and
events to differ materially from those expressed or implied in the
forward-looking information or could cause our current objectives,
strategies and intentions to change, including but not limited to: new
interpretations and new accounting standards 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 these factors are beyond our control and current expectation
or knowledge. Should one or more of these risks, uncertainties or
other factors materialize, our objectives, strategies or intentions
change, or any other factors or assumptions underlying the forward-
looking information prove incorrect, our actual results and our plans
could vary significantly from what we currently foresee. Accordingly,
we warn investors to exercise caution when considering statements
containing forward-looking information and that it would be
unreasonable to rely on such statements as creating 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
statements or assumptions, whether as a result of new information,
future events, or otherwise, except as required by law. All of the
forward-looking information in this MD&A is qualified by the
cautionary statements herein.
Before making any investment decisions and for a detailed discussion
of the risks, uncertainties and environment associated with our
business, fully review 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/investors, 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 2011 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 communications services provider.
Through Cable, we are one of Canada’s largest providers of cable
television services as well as high-speed Internet access, and telephony
services to both consumers and businesses. Through Media, we are
engaged in radio and television broadcasting, digital media, televised
shopping, consumer, trade and professional publications, and sports
entertainment. 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.
2011 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 21