Rogers 2011 Annual Report Download - page 48

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MANAGEMENT’S DISCUSSION AND ANALYSIS
Media Adjusted Operating Profit
The increase in Media’s adjusted operating profit for 2011, compared
to 2010, primarily reflects the revenue and expense changes discussed
above.
(In millions of dollars)
MEDIA ADJUSTED
OPERATING PROFIT
$119$131$180
2009 20102011
MEDIA ACQUISITIONS
Acquisition of Residual Interest in Setanta Sports
On June 8, 2011, we acquired the remaining 47% of Setanta Sports
that we did not already own for cash consideration of $11 million.
Setanta, now known as Sportsnet World, offers subscribers access to
the world’s top international sports events including professional
soccer, rugby and cricket.
Acquisition of Radio Stations
On January 31, 2011, we acquired the assets of Edmonton, Alberta FM
radio station BOUNCE (CHBN-FM) to strengthen our presence in this
market.
On January 31, 2011, we acquired the assets of London, Ontario FM
radio station BOB-FM (CHST-FM). This acquisition of BOB-FM, which is
a continual ratings leader, represents our entry into the London,
Ontario market.
Media Additions to PP&E
Media’s PP&E additions increased during 2011 primarily due to
television broadcast equipment additions related to the CRTC
mandated digital transition and planned infrastructure upgrades.
CORPORATE
CORPORATE DEVELOPMENTS
Investment in Maple Leaf Sports &Entertainment
On December 9, 2011, we announced that, along with Bell Canada,
we are jointly acquiring a net 75 percent stake in MLSE being sold by
the Ontario Teachers’ Pension Plan. MLSE is Canada’s preeminent
leader in delivering top quality sports and entertainment experiences
to fans. MLSE operates the Air Canada Centre, the NHL’s Toronto
Maple Leafs, the NBA’s Toronto Raptors, MLS’s Toronto FC, and the
AHL’s Toronto Marlies, along with three television networks: Leafs TV,
NBA TV Canada, and GOL TV Canada. Rogers’ net cash commitment,
following a planned leverage recapitalization of MLSE, will total
approximately $533 million, representing a 37.5 percent equity
interest in MLSE and will be funded with currently available liquidity.
The transaction is expected to close in mid-2012 and is subject to
regulatory and league approvals.
Rogers Bank
In 2011, we applied for a license to operate a bank under the federal
Bank Act. The bank, to be called Rogers Bank, will primarily focus on
credit, payment and charge card services. The licence is being
reviewed by the Office of the Superintendent of Financial Institutions
Canada (“OSFI”) and is pending approval.
Corporate Additions to PP&E
The corporate additions to PP&E included $71 million for 2011 and
$197 million for 2010, both of which related to spending on an
enterprise-wide billing and business support system initiative.
44 ROGERS COMMUNICATIONS INC. 2011 ANNUAL REPORT