Rogers 2015 Annual Report Download - page 43

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MANAGEMENT’S DISCUSSION AND ANALYSIS
KEY CHANGES IN FINANCIAL RESULTS THIS
YEAR COMPARED TO 2014
OPERATING REVENUE
Wireless network revenue increased this year primarily as a result of
the continued adoption of higher-postpaid ARPA-generating
Rogers Share Everything plans, partially offset by the introduction
over the past year of lower-priced roaming plans.
Cable operating revenue remained consistent this year as the
impact of a higher subscriber base for our Internet products and
the movement of customers to higher-end speed and usage tiers
were offset by Television and Phone subscriber losses over the past
year.
Business Solutions operating revenue decreased this year primarily
as a result of the continued reduction in lower margin, off-net
legacy revenue, which more than offset the growth in on-net next
generation services, including our data centre businesses.
Media operating revenue increased this year primarily as a result of
revenue generated by our NHL Agreement, growth at Sportsnet,
and higher revenue at the Toronto Blue Jays, partially offset by
continued softness in conventional TV and print advertising, as well
as lower consumer retail sales at TSC.
ADJUSTED OPERATING PROFIT
Wireless adjusted operating profit decreased this year primarily as a
result of higher net unit costs for equipment and a greater number
of upgrades, partially offset by continued adoption of higher-
postpaid-ARPA-generating service plans and higher equipment
revenue.
Cable adjusted operating profit this year was consistent with last
year as higher investments in customer care, network, and
customer value enhancement-related costs were offset by various
efficiency and productivity initiatives.
Business Solutions adjusted operating profit decreased this year as
a result of continued declines in the legacy, off-net business,
partially offset by continued growth in the higher-margin on-net,
next generation business and productivity improvements.
Media’s adjusted operating profit increased this year primarily as a
result of the success of the Toronto Blue Jays.
NET INCOME AND ADJUSTED NET INCOME
Net income increased this year primarily as a result of lower
restructuring, acquisition and other costs, lower finance costs, lower
income taxes, and higher other income, partially offset by higher
depreciation and amortization. Adjusted net income decreased
this year as this measure excludes the impact of the gain on
acquisition of Mobilicity and the loss on non-controlling interest
purchase obligation.
2015 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 41