Rogers 2011 Annual Report Download - page 8

In 2011, we built on earlier initiatives and
made solid progress in controlling costs,
essentially holding our wireless and cable
operating costs relatively flat to 2010 levels,
excluding costs associated with wireless
equipment sales. This in turn enabled us to
invest significantly in our customers, our
networks and our products while continuing
to return significant amounts of cash to
shareholders.
While we are intensely focused on delivering
results today, so too are we on making the
right investments in the growth platforms for
the future. To facilitate our future growth,
during 2011 we focused on opportunities
to build new revenue streams in areas in
and around our core businesses. In our
communications business, these growth
focuses include the areas of wireless data,
the business segment, machine-to-machine
communications, and home monitoring and
automation. While in Media, we zeroed in on
sports and local content along with growing
our presence in digital media. And these
are areas where you can expect to see us
continue to drive forward in 2012.
DELIVERING RESULTS IN 2012
Our 2012 plan strikes a healthy balance
between continued subscriber and
financial growth, and the continued
return of significant amounts of cash to
our shareholders. It reflects a prudent
management approach to a complex
and significantly intensified competitive
environment that we have seen over the past
two-plus years. Our strategy and priorities
remain intact as we invest in and evolve
our networks, systems, and service delivery
platforms to both protect our core business
and build new revenue streams.
In February 2012, our Board authorized
an 11 percent dividend increase effective
immediately and the repurchase of up to
$1.0 billion of Rogers shares over the coming
year. These decisions reflect our Board’s
continued confidence in the strength of our
balance sheet and cash flow generation, and
in the growth potential of our industry.
While delivering for our customers and
shareholders is obviously critically important,
giving back to the communities we serve is
also at the core of what we do at Rogers. To
that end, I’m extremely proud of the Rogers
Youth Fund, an important initiative that we
are launching across the company to support
Canadian youth and education. This program
represents Rogers’ national commitment to
help Canada’s youth overcome barriers to
education, empowering them to succeed in
the classroom and beyond. The program’s
goal is to help youth between the ages of 12
and 19, especially those who are at-risk due
to poverty, isolation, having to adjust to a
new language and culture, or who are facing
challenges at home.
We have made progress in our business
in 2011, and I would like to thank our
employees for their incredible hard work and
dedication. We are steadfastly focused on
continuing to drive performance and build
momentum, and look forward to the many
opportunities, as well as the challenges, in
front of us, and to another year of delivering
value for our customers and shareholders.
Thank you for your continued investment
and support,
Nadir Mohamed, FCA
PRESIDENT AND CHIEF EXECUTIVE OFFICER
ROGERS COMMUNICATIONS INC.
approach to selling to advertisers that has
also begun to yield results. While the media
group’s top-line growth was tempered in
the latter part of the year by a slowing in
the advertising market as world economic
concerns intensified, it finished 2011 with
strong increases in operating profit and
margins.
A WINNING GAME PLAN
Last year, I wrote about our focus on
continuing to strengthen our core business
in the areas of service, network and cost
management. We made solid strides during
2011, enhancing our customers’ experience
and making it easier for them to do business
with us. But this is a journey, and much
work remains to be done. We will seek to
continually develop newer, better, and faster
ways to deliver what customers want.
We took a giant step forward in our core
focus of assuring that our advanced wireless
and broadband networks are some of the
best in the world and consistently deliver fast,
reliable and proven network experiences.
To that end, this past summer Rogers was
proudly the first in Canada to launch a highly
advanced next generation LTE wireless
network that delivers some of the fastest
wireless data speeds in the world. By the
end of 2011, this wireless network, which
leads the industry, covered four of the largest
markets in Canada – or more than 30% of
the population – a significant achievement in
the history of the wireless industry in Canada.
The multi-year deployment of LTE will
continue in 2012 to cover many additional
markets across the country.
Another core focus has continued to be
on ensuring a competitive cost structure.
As our core businesses have matured
and competition increased, our top-line
growth has moderated, but our cash flow
generation has remained strong as we
focused increasingly on streamlining the
business.
04 ROGERS COMMUNICATIONS INC. 2011 ANNUAL REPORT
> LETTER TO SHAREHOLDERS