Rogers 2014 Annual Report Download - page 31

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MANAGEMENT’S DISCUSSION AND ANALYSIS
2014 HIGHLIGHTS
KEY FINANCIAL INFORMATION
Years ended December 31
(In millions of dollars, except margins and per share amounts) 2014 2013 % Chg
Consolidated
Operating revenue 12,850 12,706 1
As adjusted 1:
Operating profit 5,019 4,993 1
Operating profit margin 39.1% 39.3% (0.2 pts)
Net income 1,532 1,769 (13)
Diluted earnings per share $ 2.96 $ 3.42 (13)
Net income 1,341 1,669 (20)
Basic earnings per share $ 2.60 $ 3.24 (20)
Diluted earnings per share $ 2.56 $ 3.22 (20)
Cash provided by operating activities 3,698 3,990 (7)
Free cash flow 11,437 1,548 (7)
Wireless
Operating revenue 7,305 7,270 –
Adjusted operating profit 3,246 3,157 3
Adjusted operating profit margin as a % of network revenue 48.1% 46.8% 1.3 pts
Cable
Operating revenue 3,467 3,475 –
Adjusted operating profit 1,665 1,718 (3)
Adjusted operating profit margin 48.0% 49.4% (1.4 pts)
Business Solutions
Operating revenue 382 374 2
Adjusted operating profit 122 106 15
Media
Operating revenue 1,826 1,704 7
Adjusted operating profit 131 161 (19)
KEY PERFORMANCE INDICATORS
As at, or years ended December 31
2014 2013 Chg
Subscriber count results (000s) 2
Wireless subscribers 9,450 9,503 (53)
Internet subscribers 2,011 1,961 50
Television subscribers 2,024 2,127 (103)
Phone subscribers 1,150 1,153 (3)
Additional wireless metrics 2
Wireless postpaid churn (monthly) 1.27% 1.24% 0.03 pts
Wireless postpaid ARPU (monthly) $ 66.86 $ 67.76 ($0.90)
Ratios
Capital intensity 218.4% 17.6% 0.8 pts
Dividend payout ratio 270% 54% 16 pts
Dividend payout ratio of free cash flow 1, 2 66% 58% 8 pts
Return on assets 25.1% 7.1% (2.0 pts)
Adjusted net debt / adjusted operating profit 12.9 2.4 0.5
Employee-related information
Number of employees (approximate) 27,000 28,000 (4%)
1Adjusted operating profit, adjusted operating profit margin, adjusted net income, adjusted diluted earnings per share, free cash flow and adjusted net debt / adjusted
operating profit are non-GAAP measures and should not be considered as a substitute or alternative for GAAP measures. They are not defined terms under IFRS, and do not
have standard meanings, so may not be a reliable way to compare us to other companies. See “Non-GAAP Measures” for information about these measures, including how we
calculate them.
2As defined. See “Key Performance Indicators”.
2014 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 27