Rogers 2011 Annual Report Download - page 40

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MANAGEMENT’S DISCUSSION AND ANALYSIS
• Cable closed the acquisition of Atria Networks, one of Ontario’s
largest fibre-optic networks, which augments Rogers Business
Solutions’ enterprise offerings by further enhancing its ability to
deliver on-net data centric services within and adjacent to Cable’s
footprint.
• Cable launched the Small Business Specialist program which is an
innovative Canada-wide initiative that gives small business owners
direct access to in-store trained specialists at 157 retail locations
across Canada who can expertly and efficiently advise them on all
of their business communications solutions needs.
• Cable introduced Remote TV Manager, which enables Cable’s
digital TV subscribers in Ontario to have the freedom and flexibility
to search TV programming and manage PVR recordings online
from anywhere with their computers, tablets and smartphones.
• Rogers launched a set of advanced real-time home monitoring,
control, security, viewing and alerts from computers and
smartphones through its Smart Home Monitoring offering.
See the following segment discussions for a detailed discussion of
operating results.
CABLE OPERATIONS
Summarized Financial Results
Years ended December 31,
(In millions of dollars, except margin) 2011(1) 2010(1) % Chg
Operating revenue
Cable Television $ 1,904 $ 1,835 4
Internet 927 848 9
Home Phone 478507 (6)
Total Cable Operations operating revenue 3,309 3,190 4
Operating expenses before the undernoted
Cost of equipment sales 29 41 (29)
Other operating expenses 1,731 1,730 –
1,760 1,771 (1)
Adjusted operating profit(2) 1,549 1,419 9
Stock-based compensation expense(3) (9) (7) 29
Settlement of pension obligations(4) (4) – n/m
Integration, restructuring and acquisition expenses(5) (8)(3) 167
Other items, net(6) –(7) n/m
Operating profit(2) $ 1,528$ 1,402 9
Adjusted operating profit margin(2) 46.8% 44.5%
(1) The operating results of Kincardine and Compton are included in the Cable Operations results of operations from the dates of acquisition on July 30, 2010 and February 28,
2011, respectively.
(2) As defined. See the sections entitled “Key Performance Indicators and Non-GAAP Measures” and “Supplementary Information: Non-GAAP Calculations”.
(3) See the section entitled “Stock-based Compensation”.
(4) Relates to the settlement of pension obligations for employees in the pension plans who had retired between January 1, 2009 and January 1, 2011, as a result of annuity
purchases by the Company’s pension plans.
(5) Costs incurred relate to severance costs resulting from the targeted restructuring of our employee base and outsourcing of certain functions.
(6) Relates to the resolution of obligations and accruals relating to prior periods.
36 ROGERS COMMUNICATIONS INC. 2011 ANNUAL REPORT