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MANAGEMENT’S DISCUSSION AND ANALYSIS
CABLE
ONE OF CANADA’S LEADING PROVIDERS OF HIGH-SPEED
INTERNET, CABLE TELEVISION AND PHONE SERVICES
As at December 31, 2014, we had:
• 2.0 million high-speed Internet subscribers
• 2.0 million Television subscribers – approximately 30% of
Canadian cable television subscribers
• 1.2 million Phone subscribers
• a network that passes approximately 4 million homes in
Ontario, New Brunswick and Newfoundland.
CABLE FINANCIAL RESULTS
Years ended December 31
(In millions of dollars, except margins) 2014 12013 2%Chg
Operating revenue
Internet 1,245 1,159 7
Television 1,734 1,809 (4)
Phone 478 498 (4)
Service revenue 3,457 3,466 —
Equipment sales 10 911
Operating revenue 3,467 3,475 —
Operating expenses
Cost of equipment (6) (6) —
Other operating expenses (1,796) (1,751) 3
Operating expenses (1,802) (1,757) 3
Adjusted operating profit 1,665 1,718 (3)
Adjusted operating profit margin 48.0% 49.4% (1.4 pts)
Additions to property, plant and equipment 1,055 1,105 (5)
1The operating results of Source Cable are included in the Cable results of
operations from the date of acquisition on November 4, 2014.
2The operating results of Mountain Cable are included in the Cable results of
operations from the date of acquisition on May 1, 2013.
(IN MILLIONS OF DOLLARS)
CABLE TOTAL REVENUE
2014
2013
2012
$3,467
$3,475
$3,358
(IN MILLIONS OF DOLLARS)
CABLE SERVICE REVENUE BREAKDOWN
2014
2013
2012
$478 $1,245 $1,734
$498 $1,159 $1,809
$477 $998 $1,868
TelevisionInternetPhone
(%)
2014 CABLE SERVICE REVENUE MIX
TELEVISION 50%
INTERNET 36%
PHONE 14%
$3.5
BILLION
CABLE SUBSCRIBER RESULTS 1
Years ended December 31
(In thousands) 2014 2013 Chg
Cable homes passed 2,3 4,068 3,978 90
Internet
Net additions 34 63 (29)
Total Internet subscribers 2,3 2,011 1,961 50
Television
Net losses (119) (127) 8
Total Television subscribers 2,3 2,024 2,127 (103)
Phone
Net (losses) additions (14) 42 (56)
Total Phone subscribers 2,3 1,150 1,153 (3)
Total service units 2,3,4
Net losses (99) (22) (77)
Total service units 5,185 5,241 (56)
1Subscriber count is a key performance indicator. See “Key Performance Indicators”.
2On May 1, 2013, we acquired approximately 34,000 cable high-speed Internet
subscribers, 40,000 Television subscribers and 37,000 Phone subscribers from our
acquisition of Mountain Cable. These subscribers are not included in net additions,
but do appear in the ending total balance for December 31, 2013. The acquisition
also increased homes passed by 59,000.
3On November 4, 2014, we acquired approximately 16,000 cable high-speed
Internet subscribers, 16,000 Television subscribers and 11,000 Phone subscribers
from our acquisition of Source Cable. These subscribers are not included in net
additions, but do appear in the ending total balance for December 31, 2014. The
acquisition also increased homes passed by 26,000.
4Includes Internet, Television and Phone subscribers.
(IN THOUSANDS)
CABLE SUBSCRIBER BREAKDOWN
2014
TelevisionInternetPhone
2013
2012
1,150 2,011 2,024
1,153 1,961 2,127
1,074 1,864 2,214
46 ROGERS COMMUNICATIONS INC. 2014 ANNUAL REPORT