Rogers 2012 Annual Report Download - page 6

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PROGRESS AGAINST OUR
STRATEGIC IMPERATIVES
During 2012, we made significant progress
against our strategic objectives across all
segments of our business.
Deliver Differentiated End-to-End
Customer Experiences
In support of our leading wireless networks,
Rogers continues to offer the largest selection
of LTE devices, putting the industry’s newest
and fastest technology in the hands of our
customers. We launched another industry
first, Rogers One Number, an IP-based service
that offers Canadians the opportunity to
extend their Rogers wireless phone number to
their computer, tablet and home phone,
allowing them to text, talk and video chat
with other Rogers One Number users from
anywhere. And our new Rogers Anyplace TV
Mobile app gives customers access to an even
wider range of news, sports, movies, episodic
and children’s video content on their Rogers
smartphone or tablet.
We also partnered with SAP to wirelessly and
broadly deploy enterprise applications that
leverage SAP’s mobile platform. This exclusive
new offering will help simplify the way
organizations mobilize their workforce by
helping employees gain real-time access to
enterprise mobile applications on tablets and
smartphones that were once limited to
desktop computers.
We significantly evolved our TV offering with
the launch of our NextBox 2.0 suite of cable
television features and upgraded set-top box
capabilities. These redefine the home
entertainment experience and give customers
full control over where, when and how they
view their favourite live and recorded
DELIVERING RESULTS
In 2012, we grew revenues to a record $12.5
billion and adjusted operating profit to a new
height of $4.8 billion. As a result of the
continued top-line growth, combined with
significant efficiency gains, our margins
expanded, pre-tax free cash flow exceeded
$2.0 billion, and adjusted earnings per share
grew by 8%. We also met or exceeded all of
our financial guidance targets that were set
early in the year.
Our healthy cash flow enabled us to
comfortably make the capital investments
necessary to maintain our network
leadership position and for our Board to raise
our quarterly dividend by 11% early in 2012.
In all, Rogers returned more than $1.2 billion
of cash to shareholders during the year in a
combination of dividends and share
buybacks. And, in February 2013, our Board
authorized a further 10% dividend increase,
effective immediately.
At the same time, the underlying trends of
growth in our business continued unabated
with smartphone sales, wireless data usage
and our broadband customer base all
growing to record levels. Overall, our results
in 2012 reflect healthy continued subscriber
and financial growth, and the return of
significant amounts of cash to our
shareholders. While it was a year with
no shortage of challenges, it was one where
we grew stronger as the year progressed and
we are now well positioned for 2013.
A FOCUSED STRATEGY FOR
CONTINUED GROWTH
At Rogers, our purpose is to easily connect
customers with what matters most by
leading the enablement of seamless, easy-
to-use communications, entertainment,
information and transactional experiences
across any device, place or time.
Our commitment to innovation, to being
first, and to having superior networks has
always been the foundation of Rogers’
success – and I’m as convinced as ever,
looking out at the continued wave of
technology advances that are changing
almost every aspect of life today, that
bringing innovation to our customers is what
the future of this company is all about.
As I illustrate in the chart at the end of this
letter, there are six key long-term strategic
objectives that form the pillars of our
mandate: 1) Deliver differentiated end-to-end
customer experiences; 2) Expand our services
reach; 3) Maintain industry-leading networks;
4) Strengthen the customer experience; 5)
Improve productivity and cost structure; and
6) Drive future growth opportunities.
Nadir Mohamed, FCA
Fellow
Shareholders,
Rogers has always demonstrated the distinct ability to grow and adapt to a rapidly
changing business environment – 2012 definitely put those qualities to the test.
And, in spite of the challenging competitive landscape, we continued to build on
our long track record of growth and innovation. Our 2012 results demonstrated our
staying power and the strength of our asset mix, and send us into 2013 with a
reinvigorated growth trajectory.
INSPIRE
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02 ROGERS COMMUNICATIONS INC. 2012 ANNUAL REPORT