Rogers 2013 Annual Report Download - page 28

Management’s Discussion and Analysis
FOR THE YEAR ENDED DECEMBER 31, 2013
This Management’s Discussion and Analysis (MD&A) contains important
information about our business and our performance for the year
ended December 31, 2013. This MD&A is current as of February 12,
2014 and was approved by our Board of Directors.
You should read this MD&A together with our 2013 Audited
Consolidated Financial Statements and Notes, which have been
prepared in accordance with International Financial Reporting Standards
(IFRS).
We report our results of operations in four segments: Wireless, Cable,
Business Solutions and Media. Wireless, Cable and Business Solutions
are operated by Rogers Communications Partnership and our other
wholly owned subsidiaries. Media is operated by our wholly owned
subsidiary Rogers Media Inc. and its subsidiaries.
We,us,our,Rogers,Rogers Communications and the Company refer to
Rogers Communications Inc. and our subsidiaries.
RCI refers to the legal entity Rogers Communications Inc., not including
our subsidiaries. RCI also holds interests in various investments and
ventures.
We are publicly traded on the Toronto Stock Exchange (TSX: RCI.A and
RCI.B) and on the New York Stock Exchange (NYSE: RCI).
All amounts are in Canadian dollars unless otherwise stated. All
percentage changes are calculated using the rounded numbers as they
appear in the tables. Charts, graphs and diagrams are included for
reference; however, they do not form part of this MD&A.
In this MD&A, this year refers to the year ended December 31, 2013,
and last year refers to the year ended December 31, 2012.
ABOUT FORWARD-LOOKING INFORMATION
This MD&A includes “forward-looking information” within the meaning
of applicable securities laws, and assumptions about, among other
things, our business, operations and 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 about our objectives and strategies to achieve
those objectives, and about our beliefs, plans, expectations,
anticipations, estimates or intentions.
Forward-looking information and statements:
• typically include words like could,expect,may,anticipate,assume,
believe,intend,estimate,plan,project,guidance, outlook and similar
expressions, although not all forward-looking information and
statements include them
• include conclusions, forecasts and projections that are based on our
current objectives and strategies and on estimates, expectations,
assumptions and other factors, most of which are confidential and
proprietary and that we believe to be reasonable at the time they
were applied but may prove to be incorrect
• were approved by our management on the date of this MD&A.
Our forward-looking information and statements include forecasts and
projections related to the following items, among others:
• revenue
• adjusted operating profit
• property, plant and equipment expenditures
• cash income tax payments
• free cash flow before and after cash income taxes
• dividend payments
• expected growth in subscribers and the services they subscribe to
• the cost of acquiring and retaining subscribers and deployment of
new services
• continued cost reductions and efficiency improvements
• the growth of new products and services
• all other statements that are not historical facts.
Specific forward-looking information included or incorporated in this
document include, but is not limited to, our information and statements
under “Financial and Operating Guidance” relating to our 2014
consolidated guidance on adjusted operating profit, property plant and
equipment expenditures and after-tax free cash flow. All other
statements that are not historical facts are forward-looking statements.
We base our conclusions, forecasts and projections (including the
aforementioned guidance) on the following factors, among others:
• general economic and industry growth rates
• currency exchange rates
• product pricing levels and competitive intensity
• subscriber growth
• pricing, usage and churn rates
• changes in government regulation
• technology deployment
• availability of devices
• 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.
RISKS AND UNCERTAINTIES
Actual events and results can be substantially different from what is
expressed or implied by forward-looking information because of risks,
uncertainties and other factors, many of which are beyond our control.
These include but are 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
• the emergence of new opportunities.
24 ROGERS COMMUNICATIONS INC. 2013 ANNUAL REPORT