Rogers 2014 Annual Report Download - page 28

MANAGEMENT’S DISCUSSION AND ANALYSIS
Management’s Discussion and Analysis
This Management’s Discussion and Analysis (MD&A) contains
important information about our business and our performance for the
year ended December 31, 2014. This MD&A should be read in
conjunction with our 2014 Audited Consolidated Financial Statements,
which have been prepared in accordance with International Financial
Reporting Standards (IFRS) as issued by the International Accounting
Standards Board.
We report our results of operations in four segments: Wireless, Cable,
Business Solutions and Media. Wireless, Cable and Business Solutions
are operated by our wholly-owned subsidiary, Rogers
Communications Partnership (RCP) and certain other wholly owned
subsidiaries. Media is operated by our wholly-owned subsidiary,
Rogers Media Inc. and its subsidiaries.
All dollar 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. This
MD&A is current as at February 13, 2015 and was approved by our
Board of Directors. This MD&A includes forward-looking statements
and assumptions. See “About Forward-Looking Information” for more
information.
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).
In this MD&A, this year refers to the year ended December 31, 2014,
and last year refers to the year ended December 31, 2013. All results
commentary is compared to the equivalent period in 2013 or as at
December 31, 2013, unless otherwise indicated.
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; and
• 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
•freecashflow
• 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
2015 consolidated guidance on adjusted operating profit, property,
plant and equipment expenditures, and 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 and interest rates
• product pricing levels and competitive intensity
•subscribergrowth
• 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,
including but not limited to:
• new interpretations and new accounting standards from accounting
standards bodies
• regulatory changes
• technological change
• economic conditions
• unanticipated changes in content or equipment costs
• changing conditions in the entertainment, information and
communications industries
• the integration of acquisitions
• litigation and tax matters
• the level of competitive intensity
• the emergence of new opportunities.
24 ROGERS COMMUNICATIONS INC. 2014 ANNUAL REPORT