Rogers 2014 Annual Report Download - page 57

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MANAGEMENT’S DISCUSSION AND ANALYSIS
2013 FULL YEAR RESULTS COMPARED TO 2012
Operating revenue
Consolidated revenue increased in 2013 by $220 million from 2012,
reflecting increases in Cable of $117 million, Business Solutions of $23
million, Media of $84 million, and corporate items and intercompany
eliminations of $6 million, partially offset by a decrease in revenue of
$10 million in Wireless. The increase was due to higher Internet
revenue in Cable and higher subscription and advertising revenue in
Media, partially offset by lower equipment sales in Wireless due to
fewer existing subscribers upgrading their devices and fewer gross
activations.
Adjusted operating profit
Consolidated adjusted operating profit increased in 2013 by $159
million from 2012 reflecting increases in Wireless of $94 million, Cable
of $113 million, and Business Solutions of $17 million, partially offset by
a decrease in Media of $29 million. The increase in Wireless was due to
continued growth in data revenue and improvements in cost
management and efficiency. The increase in Cable was due to the
revenue growth partially offset by higher operating expenses.
Net income and adjusted net income
Consolidated net income decreased from $1,725 in 2012 to $1,669 in
2013 mainly because in 2012 we realized a $233 million gain on
spectrum licenses that Inukshuk sold to our non-related venture
partner, as well as the related income tax benefits we recorded that
year. Consolidated adjusted net income decreased to $1,769 million in
2013, from $1,781 million in 2012, primarily due to increases in finance
costs and depreciation and amortization, partially offset by the increase
in adjusted operating profit.
2014 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 53