Rogers Communications Reports Fourth Quarter 2013 Results

2013 Guidance Achieved and Annualized Dividend Rate Increases by 5% to $1.83 Per Share;

Wireless Adjusted Operating Profit Margin Expanded to 41.7% and Postpaid Churn Declined to 1.34% While Move to Simplified Customer Friendly Price Plans Reduced Network Revenue by 2%;

Cable Adjusted Operating Profit Margin Grew to 49.7% with Service Revenue Growth of 2% and Sequentially Fewer TV Subscriber Losses;

Media Delivered Continued Top Line Growth While Significantly Increased Hockey Broadcasts in Current Quarter Impacted Profit Growth Rates

TORONTO, Feb. 12, 2014 /CNW/ - Rogers Communications Inc., a leading diversified Canadian communications and media company, today announced its unaudited consolidated financial and operating results for the fourth quarter ended December 31, 2013, prepared in accordance with International Financial Reporting Standards (IFRS).

Financial Highlights from Continuing Operations

		Three months ended December 31			Twelve months ended December 31
(In millions of dollars, except per share amounts)		2013	2012	% Chg	2013	2012	% Chg
Operating revenue		$    3,243	$     3,261	(1)	$   12,706	$  12,486	2
As adjusted ^1 :
	Operating profit ^1	1,167	1,176	(1)	4,993	4,834	3
	Net income ^1	357	448	(20)	1,769	1,781	(1)
	Diluted earnings per share ^1	0.69	0.86	(20)	3.42	3.41	-
Pre-tax free cash flow ^1		279	296	(6)	2,044	2,029	1
Operating income ^2		617	576	7	2,926	2,766	6
Net income		320	522	(39)	1,669	1,725	(3)
Diluted earnings per share		0.62	1.01	(39)	3.22	3.30	(2)
Cash provided by operating activities		1,072	668	60	3,990	3,421	17

^1	Adjusted amounts and pre-tax free cash flow 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.
^2	As defined. See "Additional GAAP Measures".

"Our fourth quarter results largely reflect the continued impact of new customer-friendly wireless roaming and simplified sharing plans we put in place several quarters ago which have been dilutive to our revenue growth rate" said Anthony Staffieri, Executive Vice President and Chief Financial Officer. "However, we delivered continued top-line growth in Cable, Media and Business Solutions. Our discipline around costs allowed us to further expand margins and meet all of our financial guidance commitments for 2013, while the 5% dividend increase we announced this morning reflects our confidence in the ability to grow cash flows over the longer term."

"While I've only been on the job a short while I believe we have a unique opportunity to move the business forward in ways that will be very rewarding for our customers, our shareholders and our employees," said Guy Laurence, President & Chief Executive Officer. "The foundation of the company is strong and we continue to generate healthy margins and cash flow, but our rate of growth has slowed. Currently, I'm criss-crossing the country listening to all of our key stakeholders to hear their feedback and to develop a detailed plan that will build on our legacy and grow shareholder value for many years to come. I know we can do better and this is a key focus for me and the management team."

Quarterly Highlights

Operating revenue in-line with 2012

• Consolidated operating revenue was down 1% this quarter compared to the same quarter last year, reflecting a 2% decline in Wireless network revenue as well as lower equipment sales, offset by growth in Cable (2%), Business Solutions (11%), and Media (4%). The decline in Wireless is mainly related to the introduction of lower priced roaming plans and pricing changes associated with our new simplified plans that provided additional customer value. The modest slowing of Cable revenue growth reflects television subscriber losses offset by continued growth in Internet.
  
  
• Wireless activated and upgraded 790,000 smartphones, of which approximately 29% represented new subscribers. Customers with smartphones now represent 75% of Wireless postpaid subscribers.

Focus on cost efficiency drove strong margins

• Consolidated adjusted operating profit was 1% lower than the same quarter last year because the increases in Wireless (1%), Cable (3%), and Business Solutions (7%) were offset by a 35% decrease in Media. Media's results were impacted this quarter by the incremental costs associated with broadcasting significantly more hockey games compared to last year. Excluding this impact, Media adjusted operating profit would have been 22% higher than the same quarter last year, and consolidated adjusted operating profit would have been 2% higher.
  
  
• Consolidated adjusted operating profit margin was 36.0% this quarter, consistent with the same quarter of last year, because of strong adjusted operating profit margins at Wireless (41.7%) given lower total hardware subsidies and cost efficiencies and Cable (49.7%) due to shift to higher margin products.
  
  
• Consolidated operating income was 7% higher primarily because 2012 operating income included an $80 million impairment charge in the Media segment.
  
  
• Adjusted net income was 20% lower than the same quarter last year mostly due to higher depreciation and amortization expenses, finance costs and income tax expense and the hockey broadcast impact discussed above. Net income and diluted earnings per share were 39% lower than the same quarter last year. In addition to the items noted above, 2012 net income benefitted from a $233 million gain we recognized on Inukshuk spectrum licenses.

Enhance our leading networks to monetize rapid data growth

• Business Solutions announced it is expanding its hosting business in Western Canada through a newly expanded data centre in Edmonton and a new Western Canada flagship data centre in Calgary, following its acquisition of Pivot Data Centres in early October 2013.
  
  
• Rogers was named both the fastest broadband Internet service provider and the fastest wireless network in Canada in October 2013 by PCMag.com, a leading US based technology website.
  
  
• The M2M World Alliance, an organization comprised of eight leading international mobile operators including Rogers, demonstrated a single global SIM card which makes it easier to deploy connected devices in multiple countries and drive further growth for our machine-to-machine business.

Enrich the customer experience

• Rogers First Rewards, a new loyalty program allowing customers to earn points on their eligible purchases and redeem them online for a wide selection of Rogers products and services, was rolled out to the Greater Toronto Area, Ottawa, Kingston, Sudbury and other cities throughout Ontario.
  
  
• New monthly wireless US Travel Packs were launched making the customer roaming experience even easier and more affordable with simple packs and more certain costs. Valid for up to one month, these new travel packs support customers travelling to the US for longer periods of time or who want a combination of voice, data and text.
  
  
• Our TV experience was significantly enriched with the launch of our Recommendations App for Nextbox giving customers access to personalized live, rental, on-demand and previously recorded program recommendations displayed on their TV screens. A Canadian cable industry first, the app recommends similar programs based on what customers are viewing, helping Canadians to explore and uncover more programming that appeals to their individual tastes.
  
  
• Suretap wallet, the first mobile wallet from a wireless carrier in Canada, was introduced on select NFC-enabled smartphones. This launch leverages various strategic relationships within the mobile payment industry to support innovation and drive adoption of mobile payments technology across Canada.
  
  
• Rogers Alerts, a new location-based mobile solution was launched. This allows our wireless customers to access personalized, location-based offers from popular local and national retailers on their smartphones.

Accelerated sports and other content

• Exclusive NHL 12-year licensing agreement to broadcast national NHL games beginning with the 2014-2015 season was signed. The agreement grants Rogers the exclusive distribution of all national regular season and playoff games within Canada, in multiple languages, across all platforms. At the same time, we executed separate agreements to sublicense certain of these broadcasting rights to TVA Sports and CBC.
  
  
• Next Issue Canada, an innovative digital subscription magazine service that provides consumers with exclusive and unlimited access to a catalogue of more than 100 premium Canadian and US titles was launched. Next Issue Canada delivers access to our leading publishing brands alongside many of the most popular US magazine titles.
  
  
• MLB Network, a 24-hour network dedicated exclusively to baseball, was launched on Rogers digital television marking the first time this network is available in Canada. MLB Network's year-round programming features live games, news, highlights, and the game's top analysts. At the same time, Rogers Sportsnet announced an eight-year multi-platform broadcast rights extension with MLB Properties and MLB Advanced Media to show live and in-progress regular season and playoff baseball games and highlights within Canada.

Balance sheet and available liquidity remained strong with continued healthy cash flow generation

• Generated $279 million of consolidated quarterly pre-tax free cash flow which is 6% less than the same quarter last year.
  
  
• Cash provided by operating activities was 60% higher than the same quarter last year mainly because of the timing of cash income taxes and changes in non-cash net working capital.
  
  
• Issued US$1.5 billion of senior unsecured notes at some of the lowest coupon rates for Rogers corporate debt, consisting of US$850 million of 4.10% senior notes due 2023 and US$650 million of 5.45% Senior Notes due 2043, both of which have been fully hedged against fluctuations in foreign exchange rates, further supplementing our liquidity position.
  
  
• Ended the quarter with an aggregate of $4.5 billion of available liquidity, including $2.3 billion cash on hand, $2.0 billion available under our bank credit facility and $0.2 billion available under our $0.9 billion accounts receivable securitization program.

Cash returned to shareholders set to grow further with announcement of dividend increase

• Returned 10% more cash to shareholders this quarter compared to the fourth quarter of 2012 in the form of higher dividends.
  
  
• In February 2014, the Board of Directors (the Board) approved an increase of 5% in the annualized dividend rate from $1.74 to $1.83 per share, effective immediately, to be paid in quarterly amounts of $0.4575 per share.

Previously announced CEO succession completed

• Guy Laurence joined Rogers as our President and Chief Executive Officer, succeeding Nadir Mohamed who retired from Rogers in December 2013. Mr. Laurence brings 30 years of global experience in the telecommunications and media industries.

About non-GAAP measures
This summary of our earnings release contains non-GAAP measures such as adjusted operating profit, adjusted net income, adjusted basic and diluted earnings per share, adjusted net debt, pre-tax free cash flow and after-tax free cash flow. These 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.

This summary of our earnings release contains important information about our business and our performance in the fourth quarter of 2013.

This summary of our earnings release should be read in conjunction with our fourth quarter earnings release, our 2012 annual MD&A and our 2012 Audited Annual Consolidated Financial Statements and Notes thereto, as well as our 2013 Quarterly Interim Financial Statements and our other recent filings with Canadian and US securities regulatory authorities, which are available on SEDAR at sedar.com or EDGAR at sec.gov.

The financial information presented is in accordance with IFRS for interim financial statements and all amounts are in Canadian dollars unless otherwise stated. Information is current as of February 11, 2014 and was reviewed by our Board of Directors. This summary of our earnings release includes forward-looking statements and assumptions. Please 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: Wireless, Cable, Business Solutions and Media. RCI refers to the legal entity Rogers Communications Inc., not including our subsidiaries. RCI also holds interests in various investments and ventures.

Consolidated Financial Results (Unaudited)

			Three months ended December 31			Twelve months ended December 31
(In millions of dollars, except per share amounts)			2013	2012	% Chg	2013	2012	% Chg
Operating revenue
		Wireless	$    1,851	$    1,920	(4)	$    7,270	$    7,280	-
		Cable	871	852	2	3,475	3,358	3
		Business Solutions	98	88	11	374	351	7
		Media	453	434	4	1,704	1,620	5
		Corporate items and intercompany eliminations	(30)	(33)	(9)	(117)	(123)	(5)
Operating revenue			3,243	3,261	(1)	12,706	12,486	2
Adjusted operating profit
		Wireless	696	687	1	3,157	3,063	3
		Cable	433	421	3	1,718	1,605	7
		Business Solutions	29	27	7	106	89	19
		Media	49	75	(35)	161	190	(15)
		Corporate items and intercompany eliminations	(40)	(34)	18	(149)	(113)	32
Adjusted operating profit ^1			1,167	1,176	(1)	4,993	4,834	3
Adjusted operating profit margin			36.0%	36.1%		39.3%	38.7%
Operating income ^2			617	576	7	2,926	2,766	6
Net income from continuing operations			320	522	(39)	1,669	1,725	(3)
Diluted earnings per share - continuing operations			0.62	1.01	(39)	3.22	3.30	(2)
Net income			320	522	(39)	1,669	1,693	(1)
Diluted earnings per share			0.62	1.01	(39)	3.22	3.24	(1)
Adjusted net income ^1			357	448	(20)	1,769	1,781	(1)
Adjusted diluted earnings per share ^1			0.69	0.86	(20)	3.42	3.41	-
Additions to property, plant and equipment			$       703	$       707	(1)	$    2,240	$    2,142	5
Pre-tax free cash flow ^1			279	296	(6)	2,044	2,029	1
After-tax free cash flow ^1			109	39	179	1,548	1,649	(6)
Cash provided by operating activities			1,072	668	60	3,990	3,421	17

^1

Adjusted operating profit, adjusted net income, adjusted diluted earnings per share, pre-tax free cash flow and after-tax free cash flow are non-GAAP measures and should not be considered as a substitute or alternative for GAAP measures. These are not defined terms under IFRS, and do not have standard meanings, so may not be comparable to similar measures presented by other companies. See "Non-GAAP Measures" for information about these measures, including how we calculate them.

^2

As defined. See "Additional GAAP Measures".

Key Changes in Financial Results from 2012

	Three months ended	Twelve months ended
(In millions of dollars)	December 31	December 31
Operating revenue changes - higher (lower):
Network revenue - Wireless	$          (42)	$         29
Equipment sales - Wireless	(27)	(39)
Cable	19	117
Business Solutions	10	23
Media	19	84
Corporate items and intercompany eliminations	3	6
(Lower) higher operating revenue compared to 2012	(18)	220
Adjusted operating profit changes - higher (lower):
Wireless	9	94
Cable	12	113
Business Solutions	2	17
Media	(26)	(29)
Corporate items and intercompany eliminations	(6)	(36)
(Lower) higher adjusted operating profit^1 compared to 2012	(9)	159
Lower (higher) stock-based compensation expense	39	(7)
(Higher) lower restructuring, acquisition and other expenses	(14)	7
Higher depreciation and amortization	(55)	(79)
Impairment recognized in 2012	80	80
Higher operating income^2 compared to 2012	41	160
Higher finance costs	(13)	(71)
Gain on sale of interest in TVtropolis	-	47
Gain on Inukshuk spectrum distribution in 2012	(233)	(233)
Other	6	17
Lower (higher) income taxes	(3)	24
Change in net income from continuing operations from 2012	(202)	(56)
Loss from discontinued operations in 2012	-	32
Change in net income compared to 2012	(202)	(24)

^1	Adjusted operating profit is a Non-GAAP measure and should not be considered as a substitute or alternative for GAAP measure. It is not a defined term under IFRS, and does not have a standard meaning, 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.
^2	As defined. See "Additional GAAP Measures".

Operating revenue
Wireless network revenue was lower this quarter compared to the same period last year, mainly because of the recent introduction of lower priced roaming plans and pricing changes made over the past year primarily associated with our new simplified plans.

Cable operating revenue was higher this quarter compared to the same period last year, mainly because of Internet growth and the acquisition of Mountain Cable, partially offset by a decline in television revenue associated with competitive TV subscriber losses.

Business Solutions operating revenue was higher this quarter compared to the same period last year, mainly because we completed the acquisitions of Blackiron and Pivot Data Centres earlier this year, combined with the continuing growth in on-net and next-generation services.

Media operating revenue was higher this quarter compared to the same period last year, mainly because of revenue growth at Sportsnet and higher sales at The Shopping Channel.

Adjusted operating profit
Wireless adjusted operating profit was higher this quarter compared to the same period last year, mainly because of cost management and productivity initiatives implemented across various areas, including cost of equipment, offset by reduced network revenue described above.

Cable adjusted operating profit was higher this quarter compared to the same period last year, because of the continued shift in our product mix towards higher margin Internet and phone products.

Media's adjusted operating profit was lower this quarter compared to the same period last year. The increase in Media's operating revenue this year was more than offset by the combined impacts of the the lower number of games broadcast in the fourth quarter of 2012 resulting from the NHL lockout compared with having to broadcast more NHL hockey games in the fourth quarter of 2013 because of the compressed 2013-2014 schedule associated with the upcoming winter Olympics. Excluding the impact of these items, Media's consolidated adjusted operating profit would have increased by 22%.

Operating income and net income
Operating income was higher than the same quarter last year mainly because stock-based compensation expense was lower and we realized an $80 million impairment charge in 2012. This was partially offset by higher depreciation and amortization, restructuring, acquisition and other expenses.

Net income this quarter was lower than the same quarter last year because of the changes in revenue, adjusted operating profit and operating income. Also 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 quarter.

2013 Achievements Against Full Year Guidance
The following table outlines guidance ranges, actual results and achievements for the selected full year 2013 financial metrics.

		2013			2013
(In millions of dollars)		Guidance			Actual	Achievement
Consolidated Guidance
	Adjusted operating profit ^1	$    4,865	to	$   5,050	$   4,993	√
	Additions to property, plant and equipment ^2	2,150	to	2,250	2,240	√
	Pre-tax free cash flow ^1	2,030	to	2,090	2,044	√
	Cash income taxes^3	650	to	700	496	*
Achieved √             Exceeded *

^1	Adjusted operating profit and pre-tax free cash flow 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.
^2	Includes additions to property, plant and equipment expenditures for Wireless, Cable, Media, Business Solutions, and Corporate segments.
^3	In the third quarter of 2013, we reduced our guidance for cash income taxes to be approximately $500 million to reflect the results of a number of tax planning initiatives.

2014 Full Year Consolidated Guidance
The following table outlines guidance ranges for selected full year 2014 consolidated financial metrics, which takes into consideration our current outlook and our actual results for 2013 and are based on a number of assumptions, including those noted after the table. Information about our guidance including the assumptions underlying our guidance is forward-looking and should be read in conjunction with "About Forward-Looking Information" and the related disclosure and information about various economic, competitive and regulatory assumptions, factors and risks that may cause our actual future financial and operating results to differ from what we currently expect.

Full Year 2014 Guidance		2013			2014
(In millions of dollars)		Actual			Guidance
Consolidated Guidance
	Adjusted operating profit ^1	$  4,993			$    5,000	to	$    5,150
	Additions to property, plant and equipment ^2	2,240			2,275	to	2,375
	After-tax free cash flow ^1	1,548			1,425	to	1,500

^1	Adjusted operating profit and after-tax free cash flow 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.
^2	Includes additions to property, plant and equipment expenditures for Wireless, Cable, Media, Business Solutions, and Corporate segments and excludes purchases of spectrum licenses, such as, but not limited to, the cost of 700MHz spectrum from a planned national auction in the first half of 2014.

Key underlying assumptions

Our 2014 guidance ranges above are based on many assumptions, including but not limited to the following material assumptions:

(1)	Growth in Wireless network revenue to between $6,750 million to $6,910 million and adjusted operating profit to between $3,175 million to $3,300 million.
(2)	Growth in Cable revenue to between $3,540 million to $3,640 million and adjusted operating profit to between $1,720 million to $1,770 million.
(3)	Growth in Business Solutions revenue to between $375 million to $395 million and adjusted operating profit to between $110 million to $125 million.
(4)	Growth in Media revenue to between $1,900 million to $1,960 million and adjusted operating profit to between $165 million to $190 million.
(5)	Continued intense competition in all segments in which we operate.
(6)	Substantially all US-dollar-denominated expenditures have been hedged at an exchange rate of $1.0262/US $1.
(7)	No significant additional regulatory developments, shifts in economic conditions or macro changes in the competitive environment affecting our business activities.

Results of our Business Segments

WIRELESS

Financial results

		Three months ended December 31			Twelve months ended December 31
(In millions of dollars, except percentages)		2013	2012	% Chg	2013	2012	% Chg
Operating revenue
	Network revenue	$    1,669	$    1,711	(2)	$    6,748	$    6,719	-
	Equipment sales	182	209	(13)	522	561	(7)
Operating revenue - Wireless		1,851	1,920	(4)	7,270	7,280	-
Operating expenses
	Cost of equipment ^1	(487)	(558)	(13)	(1,535)	(1,585)	(3)
	Other operating expenses	(668)	(675)	(1)	(2,578)	(2,632)	(2)
		(1,155)	(1,233)	(6)	(4,113)	(4,217)	(2)
Adjusted operating profit - Wireless		$       696	$       687	1	$    3,157	$    3,063	3
Adjusted operating profit margin as
% of network revenue		41.7%	40.2%		46.8%	45.6%
Additions to property, plant and equipment		$       243	$       386	(37)	$       865	$    1,123	(23)
Data revenue included in network revenue		$       825	$       727	13	$    3,175	$    2,722	17
Data revenue as % of network revenue		49%	42%		47%	41%

^1	Includes the cost of equipment sales and direct channel subsidies.

Subscriber results ^{1, 2}

(Subscriber statistics in thousands,		Three months ended December 31			Twelve months ended December 31
except ARPU and churn)		2013	2012	Chg	2013	2012	Chg
Postpaid
	Gross additions	357	387	(30)	1,409	1,457	(48)
	Net additions	34	58	(24)	228	268	(40)
	Total postpaid subscribers	8,074	7,846	228	8,074	7,846	228
	Monthly churn	1.34%	1.40%	(0.06) pts	1.24%	1.29%	(0.05) pts
	Monthly average revenue per user (ARPU)	$   66.34	$   69.75	$    (3.41)	$   67.76	$   69.30	$    (1.54)
Prepaid
	Gross additions	120	131	(11)	525	627	(102)
	Net losses	(29)	(53)	24	(162)	(170)	8
	Total prepaid subscribers	1,429	1,591	(162)	1,429	1,591	(162)
	Monthly churn	3.41%	3.77%	(0.36) pts	3.85%	3.98%	(0.13) pts
	ARPU	$   15.49	$   15.83	$    (0.34)	$   15.64	$   15.84	$    (0.20)
Blended ARPU		$   58.59	$   60.48	$    (1.89)	$   59.58	$   59.79	$    (0.21)
	Data ARPU	28.95	25.72	3.23	28.03	24.22	3.81
	Voice ARPU	29.64	34.76	(5.12)	31.55	35.57	(4.02)

^1	Does not include subscribers from our wireless home phone product.
^2	ARPU, subscriber counts and subscriber churn are key performance indicators. See "Key Performance Indicators".

Lower network revenue this quarter due to the adoption of lower priced roaming plans
Network revenue was down this quarter compared to last year, the net result of:

• our introduction earlier this year of new lower priced US and international roaming plans and rates which offer consumers more value
• the continued adoption of customer friendly simplified plans, which often bundle in certain features like voicemail, caller ID and domestic long distance that we have charged separately for in the past
• partially offset by higher data revenue related to an increase in postpaid subscriber levels and higher usage of wireless data services.

Data revenue was 13% higher this quarter than the same period last year, mainly because of the continued penetration and growing use of smartphones, tablet devices and wireless laptops, which are increasing the use of e-mail, wireless, Internet access, text messaging and other wireless data services. Data revenue represented approximately 49% of total network revenue this quarter, compared to approximately 42% in the same period last year.

Postpaid churn was 1.34% this quarter, compared to 1.40% for the same period last year. We believe the lower churn rate is partly attributable to the new simplified plans and roaming plans we introduced.

Gross postpaid subscriber additions were 357,000 this quarter, or 8% lower than the same period last year, which reduced net postpaid subscriber additions to 34,000, despite lower postpaid churn. The industry transition from three year to two year plans may have slowed overall wireless subscriber growth during the past two quarters, as a result of the recent adoption of the Canadian Radio-television and Telecommunications Commission (CRTC) Wireless Code.

We activated and upgraded approximately 790,000 smartphones this quarter, compared to approximately 940,000 in the same period last year. The decrease was mainly because there was an 18% reduction in hardware upgrades by existing subscribers this quarter, which we also believe is at least partly due to the move from three to two year contacts and the associated pricing changes.

The percentage of subscribers with smartphones increased this quarter to 75% of our total postpaid subscriber base, compared to 69% last year. Smartphone subscribers typically generate significantly higher ARPU and are less likely to churn.

Blended ARPU was down 3% this quarter compared to the same period last year because the voice component declined at a faster rate than the increase in the data component.

Lower equipment sales
Revenue from equipment sales was lower this quarter, mainly because fewer existing subscribers upgraded their devices and there were fewer gross activations.

Lower operating expenses
The cost of equipment was 13% lower this quarter compared to the same period last year mainly because fewer existing subscribers upgraded their hardware and there were fewer gross activations, as discussed above.

Total customer retention spending (including subsidies on handset upgrades) was $292 million this quarter compared to $320 million in the same period last year. The reduction was mainly because fewer existing subscribers upgraded their hardware, as discussed above.

Other operating expenses (excluding retention spending) was down by 2% this quarter due to a continued focus on cost productivity initiatives we are implementing across various functions.

Higher adjusted operating profit
Adjusted operating profit was 1% higher this quarter compared to the same period last year because of:

• continued growth of wireless data
• our improvements in cost management and efficiency, and
• lower volumes of hardware sales and upgrades, partially offset by the decrease in network revenue.

CABLE

Financial results

			Three months ended December 31			Twelve months ended December 31
(In millions of dollars, except percentages)			2013^1	2012	% Chg	2013^1	2012	% Chg
Operating revenue
		Television	$          442	$       462	(4)	$        1,809	$   1,868	(3)
		Internet	301	263	14	1,159	998	16
		Phone	125	122	2	498	477	4
	Service revenue		868	847	2	3,466	3,343	4
	Equipment sales		3	5	(40)	9	15	(40)
Operating revenue - Cable			871	852	2	3,475	3,358	3
Operating expenses
	Cost of equipment		(2)	(6)	(67)	(6)	(20)	(70)
	Other operating expenses		(436)	(425)	3	(1,751)	(1,733)	1
			(438)	(431)	2	(1,757)	(1,753)	-
Adjusted operating profit - Cable			$         433	$        421	3	$        1,718	$    1,605	7
Adjusted operating profit margin			49.7%	49.4%		49.4%	47.8%
Additions to property, plant and equipment			$         358	$        259	38	$        1,105	$       832	33

^1	Results of operations include Mountain Cable's operating results as of May 1, 2013 (the date of acquisition).

Subscriber results ¹

		Three months ended December 31			Twelve months ended December 31
(Subscriber statistics in thousands)		2013	2012	Chg	2013	2012	Chg
Cable homes passed		3,978	3,810	168	3,978	3,810	168
Television
	Net losses	(28)	(25)	(3)	(127)	(83)	(44)
	Total television subscribers ^2	2,127	2,214	(87)	2,127	2,214	(87)
Internet
	Net additions	13	22	(9)	63	73	(10)
	Total Internet subscribers ^2	1,961	1,864	97	1,961	1,864	97
Phone
	Net additions	5	10	(5)	42	23	19
	Total phone subscribers ^2	1,153	1,074	79	1,153	1,074	79
Total service units ^2,3
	Net additions (losses)	(10)	7	(17)	(22)	13	(35)
	Total service units	5,241	5,152	89	5,241	5,152	89

^1	Subscriber count is a key performance indicator. See "Key Performance Indicators".
^2	On May 1, 2013, we acquired 40,000 television subscribers, 38,000 digital cable households, 34,000 cable high-speed Internet subscribers and 37,000 cable telephony lines 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.
^3	Includes television, Internet and phone subscribers.

Operating revenue
Overall cable revenue grew at a 2% rate this quarter compared to the same period last year, the net result of:

• continued growth in subscribers for our Internet and phone products
• the May 2013 acquisition of Mountain Cable
• partially offset by television subscriber losses.

Lower television revenue
Revenue from television was down this quarter as a result of:

• the year-over-year decline in television subscribers
• the impact of promotional and retention pricing activity associated with heightened pay TV competition from IPTV offerings
• partially offset by pricing increases during the year and the acquisition of Mountain Cable.

The digital cable subscriber base represented 84% of our total television subscriber base at the end of the quarter, compared to 80% at the end of 2012. We believe that the larger selection of digital content, video on-demand, HDTV and PVR equipment, combined with the ongoing analog to digital conversion initiative, continues to contribute to the increasing penetration of the digital subscriber base as a percentage of our total television subscriber base.

Higher Internet revenue and growing subscriber base
Internet revenue was 14% higher this quarter compared to last year as a net result of a larger Internet subscriber base, general movement to higher end speed and usage tiers and changes in Internet service pricing.

Our Internet customer base is approximately 2.0 million subscribers, and Internet penetration represents:

• 92% of our television subscribers, compared to 84% at December 31, 2012
• 49% of the homes passed by our cable network; same as at December 31, 2012.

Higher Cable telephony revenue and growing subscriber base
Phone revenue was 2% higher this quarter compared to last year. This was the net result of:

• higher phone subscriber base
• partially offset by higher promotional pricing activity.

There were 7% more phone subscribers this quarter compared last year. They represent:

• 54% of our television subscribers, compared to 49% last year.
• 29% of the homes passed by our cable network compared to 28% last year.

Higher operating expenses
Operating expenses were 2% higher this quarter compared to last year mainly due to:

• operating expenses generated by Mountain Cable which we acquired earlier this year
• higher investments in customer care and network
• partially offset by the cost efficiency initiatives.

Higher adjusted operating profit
Adjusted operating profit was 3% higher this quarter compared to the same period last year, mainly the net result of higher service revenue, partially offset by higher operating expenses. The increase in the adjusted operating profit margin reflects a continued shift in product mix to the higher margin Internet and phone products combined with efficiency gains.

BUSINESS SOLUTIONS

Financial results

			Three months ended December 31			Twelve months ended December 31
(In millions of dollars, except percentages)			2013 ^1	2012	% Chg	2013 ^1	2012	% Chg
Operating revenue
		Next generation	$         63	$        43	47	$       213	$      162	31
		Legacy	34	43	(21)	149	183	(19)
	Service revenue		97	86	13	362	345	5
	Equipment sales		1	2	(50)	12	6	100
Operating revenue - Business Solutions			98	88	11	374	351	7
Operating expenses			(69)	(61)	13	(268)	(262)	2
Adjusted operating profit - Business Solutions			$         29	$        27	7	$       106	$        89	19
Adjusted operating profit margin			29.6%	30.7%		28.3%	25.4%
Additions to property, plant and equipment			$        41	$        16	156	$      107	$        61	75

^1	Results of operations include Blackiron's operating results as of April 17, 2013 and Pivot Data Centres as of October 1, 2013 (the dates of acquisition).

Business Solutions continues to focus mainly on next generation IP-based services, and on leveraging higher margin on-net and near-net service revenue opportunities, using existing network facilities to expand offerings to the medium and large sized enterprise, public sector and carrier markets. Next generation services now represent 65% of total service revenue. Revenue from the lower margin off-net legacy business generally includes local and long-distance voice services and legacy data services which often use facilities that are leased rather than owned.

Following our recent data centre business acquisitions, Business Solutions is now also focused on data centre colocation, hosting, cloud and disaster recovery services.

Higher operating revenue
Operating revenue was 11% higher this quarter compared to the same period last year, the net result of:

• growth from the acquisitions of Blackiron and Pivot Data Centres earlier this year
• continuing execution of our plan to grow higher margin on-net and next-gen IP-based services revenue
• partially offset by the continuing decline in the legacy voice and data business, a trend we expect to continue as customers move to faster and more reliable IP services.

Higher operating expenses
Operating expenses were higher this quarter compared to the same period last year, the net result of:

• incremental expenses related to our data centre acquisitions
• partially offset by lower legacy service-related costs related to lower volumes and customer levels, as expected, and ongoing initiatives to improve costs and productivity.

Higher adjusted operating profit
Adjusted operating profit was 7% higher this quarter compared to the same period last year, because of the contribution of the new data centres, the ongoing growth in higher margin on-net and next-gen business, and cost efficiencies.

Acquisitions
We acquired Pivot Data Centres on October 1, 2013 for $158 million. This, combined with our acquisition of Blackiron earlier this year, positions Business Solutions as a Canadian leader in data centre colocation, cloud and hosting services.  Excluding these acquisitions, both revenue and adjusted operating profit would have decreased by 8% compared to the same period last year, instead of increasing 11% and 7%, respectively, as reported.

MEDIA

Financial results

	Three months ended December 31			Twelve months ended December 31
(In millions of dollars, except percentages)	2013 ^1	2012	% Chg	2013 ^1	2012	% Chg
Operating revenue - Media	$      453	$      434	4	$    1,704	$   1,620	5
Operating expenses	(404)	(359)	13	(1,543)	(1,430)	8
Adjusted operating profit - Media	$        49	$        75	(35)	$       161	$      190	(15)
Adjusted operating profit margin	10.8%	17.3%		9.4%	11.7%
Additions to property, plant and equipment	$        34	$        23	48	$         79	$        55	44

^1	Results of operations include theScore's operating results as of April 30, 2013 (the date of acquisition).

Higher operating revenue
Operating revenue was 4% higher this quarter compared to the same period last year, mainly because of:

• higher subscription and advertising revenue generated by the Sportsnet properties, including the increase resulting from our acquisition of theScore earlier in the year
• higher advertising revenue of $20 million resulting from timing of NHL hockey games. The fourth quarter of last year was lower than normal due to the NHL player lockout which resulted in no NHL games being aired and this quarter was higher than normal due in part to the compressed NHL schedule in advance of the upcoming winter Olympics
• higher sales at The Shopping Channel
• partially offset by declines at Television due to a continued soft advertising market.

Higher operating expenses
The increase in operating expenses was mainly the result of higher programming costs at Sportsnet, higher merchandise spending at The Shopping Channel and costs associated with our launch of Next Issue Canada.

The higher programming costs this quarter are a combination of the lower costs in 2012 because of the NHL player lockout, when no games were aired, and higher costs this quarter because more hockey games than normal were aired due in part to the compressed NHL schedule caused by the upcoming winter Olympics. While the majority of Sportsnet's revenue is subscriber-based and recognized relatively evenly throughout each year, regional programming costs and advertising revenue are recognized as games are aired. Approximately $56 million of Media's year over year increase in operating expense this quarter resulted from the 2012 NHL lockout and timing of games aired in the fourth quarter of 2013.

Lower adjusted operating profit this quarter
Adjusted operating profit was down 35% this quarter compared to last year, reflecting the revenue and expense changes described above.

Excluding the approximately $36 million impact of the NHL player lockout in 2012 and the compressed NHL schedule during the current quarter in advance of the upcoming Olympics, adjusted operating profit would have been 22% higher compared to last year.

Other developments
The 12-year licencing agreement with the NHL to broadcast NHL games, beginning with the 2014-2015 season, represents the largest sports media rights deal ever announced in Canada. The agreement grants Rogers the exclusive national live and in-progress regular season and playoff game audio/visual distribution within Canada, and ownership of all commercial inventories for the television broadcasts. Rogers will also have the right to operate various NHL broadcast assets and will own all linear and digital highlights. Through this agreement, Rogers plans to provide Canadians with a unique experience that will feature expanded pre- and post-game coverage and other enhanced NHL content. We expect this agreement to drive Sportsnet subscriber growth and will provide highly sought after content in multiple languages across all of Rogers' platforms.

ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT

		Three months ended December 31			Twelve months ended December 31
(In millions of dollars, except percentages)		2013	2012	% Chg	2013	2012	% Chg
Additions to property, plant and equipment
	Wireless	$      243	$      386	(37)	$      865	$   1,123	(23)
	Cable	358	259	38	1,105	832	33
	Business Solutions	41	16	156	107	61	75
	Media	34	23	48	79	55	44
	Corporate	27	23	17	84	71	18
Total additions to property, plant and equipment		$      703	$      707	(1)	$   2,240	$   2,142	5
Capital intensity ^1		21.7%	21.7%	-	17.6%	17.2%	0.4 pts

^1	Capital intensity is a key performance indicator. See "Key Performance Indicators".

Wireless
Wireless additions were 37% lower this quarter compared to last year due to the timing of our continued deployment of the LTE network, which reached approximately 73% of Canada's population at December 31, 2013. The lower capital expenditures were partially offset by higher site activity to improve the coverage and quality of the network.

Cable
Cable additions were 38% higher for the quarter compared to last year. The higher investments this quarter and for the year were to improve our video and internet platforms such as our 250Mbps internet service launched in the fourth quarter, and for customer premise equipment related to the roll out of Nextbox 2.0 and Nextbox 3.0 digital set top boxes and analog to digital subscriber migrations. This quarter we also invested in various network components to improve the reliability and quality of the network and to integrate the Mountain Cable network we acquired on May 1, 2013.

Business Solutions
Business Solutions additions were higher this quarter compared to last year because we spent more on expanding customer specific networks and capital investments made by Blackiron, Pivot Data Centres and Granite Networks, which we acquired this year.

Media
Media additions were higher this quarter compared to last year because we spent more on digital and broadcast facilities.

KEY PERFORMANCE INDICATORS

We measure the success of our strategy using a number of key performance indicators, which are outlined below. We believe these key performance indicators allow us to appropriately measure our performance against our operating strategy as well as against the results of our peers and competitors. The following key performance indicators are not measurements in accordance with IFRS and should not be considered as an alternative to net income or any other measure of performance under IFRS.

Subscriber Counts
We determine the number of subscribers to our services based on active subscribers. When subscribers are deactivated, either voluntarily or involuntarily for non-payment, they are considered to be deactivations in the period the services are discontinued.

Wireless

• A wireless subscriber is represented by each identifiable telephone number.
• We report wireless subscribers in two categories: postpaid and prepaid. Postpaid and prepaid include voice-only subscribers, data-only subscribers, and subscribers with service plans integrating both voice and data.
• Wireless prepaid subscribers are considered active for a period of 180 days from the date of their last revenue-generating usage.

Cable

• Cable Television and Internet subscribers are represented by a dwelling unit, and cable Phone subscribers are represented by line counts.
• When there is more than one unit in one dwelling, like an apartment building, each tenant with cable service is counted as an individual subscriber, whether the service is invoiced separately or included in the tenant's rent. Institutional units, like hospitals or hotels, are each considered to be one subscriber.
• Cable Television, Internet, and Phone subscribers include only those subscribers who have service installed and operating, and who are being billed accordingly.

Subscriber Churn
Subscriber churn is a measure of the number of subscribers that deactivated as a percentage of the total subscriber base, usually calculated on a monthly basis. Subscriber churn tells us our success in retaining our subscribers. We calculate it by dividing the number of Wireless subscribers that deactivated (usually in a month) by the aggregate numbers of subscribers at the beginning of the period. When used or reported for a period greater than one month, subscriber churn represents the sum of the number of subscribers deactivating for each period divided by the sum of the aggregate number of subscribers at the beginning of each period.

Average Revenue per User
Average Revenue per User (ARPU) helps us identify trends and measure our success in attracting and retaining higher value subscribers. We calculate it by dividing revenue (usually monthly) by the average number of subscribers in the period. For Wireless, ARPU is calculated using network revenue. When used in connection with a particular type of subscriber, ARPU is monthly revenue generated from those subscribers, divided by the average number of those subscribers during the month.

Capital Intensity
Capital intensity allows us to compare the level of our additions to property, plant and equipment to that of other companies within the same industry. We calculate it by dividing additions to property, plant and equipment by operating revenue. For Wireless, capital intensity is calculated using total network revenue. We use it to evaluate the performance of our assets and when making decisions about capital expenditures. We believe that certain investors and analysts use capital intensity to measure the performance of asset purchases and construction in relation to revenue.

ADDITIONAL GAAP MEASURES

We include operating income as an additional GAAP measure in our consolidated statements of income because we believe it is representative of our normal course operating activities, provides relevant information that can be used to assess our consolidated performance, and is meaningful to investors. We calculate it by taking revenue and deducting operating expenses, including restructuring, acquisition and other expenses, and depreciation and amortization as shown in our consolidated statements of income.

NON-GAAP MEASURES

We use the following Non-GAAP measures. These are reviewed regularly by management and our Board in assessing our performance and making decisions regarding the ongoing operations of our business and its ability to generate cash flows. These measures are also used by investors, lending institutions and credit rating agencies as an indicator of our operating performance, our ability to incur and service debt, and as a measurement to value companies in the telecommunications sector. These are not recognized measures under GAAP and do not have a standardized meaning under IFRS, so they may not be a reliable way to compare us to other companies.

Non-GAAP measure	Why we use it	How we calculate it	Most comparable IFRS financial measure
Adjusted operating profit or loss and related margin	- To evaluate the performance of our businesses, and when making decisions about the ongoing operations of the business and our ability to generate cash flows. - We believe that certain investors and analysts use adjusted operating profit to measure our ability to service debt and to meet other payment obligations. - We also use it as one component in determining short-term incentive compensation for all management employees.	Operating income add back depreciation, amortization, impairment of assets, stock-based compensation expense (recovery) and restructuring, acquisition and other expenses	Operating income
Adjusted net income Adjusted basic and diluted earnings per share	- To assess the performance of our businesses before the effects of these items, because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. -  Excluding these items does not imply they are non-recurring.	Net income from continuing operations add back stock-based compensation expense (recovery), restructuring, acquisition and other expenses, impairment of assets, gain on spectrum distribution, gain on sale of investment, income tax adjustments on these items including adjustments due to legislative change	Net income Earnings per share
Pre-tax and after-tax free cash flow	- An important indicator of our financial strength and performance because it shows how much cash we have available to repay debt and reinvest in our company. - We believe that some investors and analysts use free cash flow to value a business and its underlying assets.	Adjusted operating profit minus spending on property, plant and equipment, interest on long-term debt net of interest capitalized	Cash flows from operating activities
Adjusted net debt	- To conduct valuation-related analysis and make decisions about capital structure. - We believe this helps investors and analysts analyze our enterprise and equity value and assess various leverage ratios as performance measures.	Total long-term debt plus current portion of long-term debt, net Debt Derivative liabilities, deferred transaction costs, short-term borrowings, minus cash and cash equivalents	Long-term debt

Reconciliation of Adjusted Operating Profit

		Three months ended December 31		Twelve months ended December 31
(In millions of dollars)		2013	2012	2013	2012
Operating income		$          617	$         576	$      2,926	$      2,766
Add (deduct):
	Depreciation and amortization	508	453	1,898	1,819
	Impairment of assets	-	80	-	80
	Stock-based compensation expense	18	57	84	77
	Restructuring, acquisition and other expenses	24	10	85	92
Adjusted operating profit		$       1,167	$     1,176	$     4,993	$      4,834

Reconciliation of Adjusted Net Income

		Three months ended December 31		Twelve months ended December 31
(In millions of dollars)		2013	2012	2013	2012
Net income from continuing operations		$         320	$         522	$       1,669	$       1,725
Add (deduct):
	Stock-based compensation expense	18	57	84	77
	Restructuring, acquisition and other expenses	24	10	85	92
	Impairment of assets	-	80	-	80
	Gain on sale of TVtropolis	-	-	(47)	-
	Gain on spectrum distribution	-	(233)	-	(233)
Income tax impact of above items		(5)	12	(30)	(14)
Income tax adjustment, legislative tax change		-	-	8	54
Adjusted net income		$          357	$         448	$       1,769	$        1,781

Reconciliation of Pre-Tax and After-Tax Free Cash Flow

		Three months ended December 31		Twelve months ended December 31
(In millions of dollars)		2013	2012	2013	2012
Cash provided by operating activities		$       1,072	$         668	$      3,990	$       3,421
Add (deduct):
	Property, plant and equipment expenditures	(703)	(707)	(2,240)	(2,142)
	Interest on long-term debt expense, net of capitalization	(185)	(173)	(709)	(663)
	Restructuring, acquisition and other expenses	24	10	85	92
	Cash income taxes	170	257	496	380
	Interest paid	85	125	700	680
	Non-cash working capital items	(167)	108	(238)	248
	Other adjustments	(17)	8	(40)	13
Pre-tax free cash flow		279	296	2,044	2,029
	Cash income taxes	(170)	(257)	(496)	(380)
After-tax free cash flow		$         109	$           39	$     1,548	$      1,649

Reconciliation of Adjusted Net Debt

(In millions of dollars)		December 31, 2013	December 31, 2012
Long-term debt		$                         12,173	$                         10,441
Current portion of long-term debt		1,170	348
		13,343	10,789
Add  (deduct):
	Net Debt Derivatives (assets) liabilities	(51)	524
	Deferred transaction costs	93	69
	Short-term borrowings	650	-
	Cash and cash equivalents	(2,301)	(213)
Adjusted net debt		$                         11,734	$                         11,169

How we Calculate Adjusted Earnings Per Share

(In millions of dollars, except per share amounts;			Three months ended December 31		Twelve months ended December 31
number of shares outstanding in millions)			2013	2012	2013	2012
Adjusted basic earnings per share:
	Adjusted net income		$         357	$         448	$     1,769	$       1,781
	Divided by: weighted average number of shares outstanding		515	515	515	519
Adjusted basic earnings per share			$        0.69	$        0.87	$       3.43	$         3.43
Adjusted diluted earnings per share:
	Adjusted net income		$         357	$         448	$     1,769	$       1,781
	Divided by: diluted weighted average number of shares outstanding		517	518	518	522
Adjusted diluted earnings per share			$        0.69	$        0.86	$       3.42	$         3.41
Basic earnings per share:
	Net income from continuing operations		$         320	$         522	$     1,669	$       1,725
	Net income		320	522	1,669	1,693
	Divided by: weighted average number of shares outstanding		515	515	515	519
Basic earnings per share - continuing operations			$        0.62	$        1.01	$       3.24	$         3.32
Basic earnings per share			$        0.62	$        1.01	$       3.24	$         3.26
Diluted earnings per share:
	Net income from continuing operations		$         320	$         522	$     1,669	$       1,725
		Effect on net income of dilutive securities	-	-	-	-
		Diluted net income from continuing operations	$         320	$         522	$     1,669	$       1,725
	Net income		$         320	$         522	$     1,669	$       1,693
		Effect on net income of dilutive securities	-	-	-	-
		Diluted net income	$         320	$         522	$     1,669	$       1,693
		Divided by: diluted weighted average number of shares outstanding	517	518	518	522
Diluted earnings per share - continuing operations			$        0.62	$        1.01	$       3.22	$         3.30
Diluted earnings per share			$        0.62	$        1.01	$       3.22	$         3.24

Rogers Communications Inc.
Unaudited Consolidated Statements of Income
(In millions of Canadian dollars, except per share amounts)
			Three months ended						Twelve months ended
			December 31						December 31
			2013		2012				2013		2012
Operating revenue		$	3,243	$	3,261			$	12,706	$	12,486
Operating expenses:
	Operating costs		2,094		2,142				7,797		7,729
	Restructuring, acquisition and other expenses		24		10				85		92
	Depreciation and amortization		508		453				1,898		1,819
	Impairment of assets		-		80				-		80
Operating income			617		576				2,926		2,766
Finance costs			(196)		(183)				(742)		(671)
Other income			14		241				81		250
Income before income taxes			435		634				2,265		2,345
Income tax expense			(115)		(112)				(596)		(620)
Net income for the period from continuing operations			320		522				1,669		1,725
Loss from discontinued operations, net of tax			-		-				-		(32)
Net income		$	320	$	522			$	1,669	$	1,693
Earnings per share - basic:
	Earnings per share from continuing operations	$	0.62	$	1.01			$	3.24	$	3.32
	Loss per share from discontinued operations		-		-				-		(0.06)
Earnings per share - basic		$	0.62		1.01			$	3.24	$	3.26
Earnings per share - diluted:
	Earnings per share from continuing operations	$	0.62	$	1.01			$	3.22	$	3.30
	Loss per share from discontinued operations		-		-				-		(0.06)
Earnings per share - diluted		$	0.62	$	1.01			$	3.22	$	3.24

Rogers Communications Inc. Unaudited Consolidated Statements of Financial Position (In millions of Canadian dollars)
				December 31
				2013			2012
Assets
Current assets:
	Cash and cash equivalents		$	2,301		$	213
	Accounts receivable			1,509			1,536
	Other current assets			438			464
	Current portion of derivative instruments			73			8
Total current assets				4,321			2,221
Property, plant and equipment				10,255			9,576
Goodwill				3,751			3,215
Intangible assets				3,211			2,951
Investments				1,487			1,484
Derivative instruments				148			42
Other long-term assets				397			98
Deferred tax assets				31			31
Total assets			$	23,601		$	19,618
Liabilities and shareholders' equity
Current liabilities:
	Short-term borrowings		$	650		$	-
	Accounts payable and accrued liabilities			2,344			2,135
	Income tax payable			22			24
	Current portion of provisions			7			7
	Current portion of long-term debt			1,170			348
	Current portion of derivative instruments			63			144
	Unearned revenue			350			344
Total current liabilities				4,606			3,002
Provisions				40			31
Long-term debt				12,173			10,441
Derivative instruments				83			417
Other long-term liabilities				328			458
Deferred tax liabilities				1,702			1,501
Total liabilities				18,932			15,850
Shareholders' equity				4,669			3,768
Total liabilities and shareholders' equity			$	23,601		$	19,618

Rogers Communications Inc.
Unaudited Consolidated Statements of Cash Flows
(In millions of Canadian dollars)
														Three months ended December 31											Twelve months ended December 31
													2013					2012							2013				2012
Cash provided by (used in):
Operating activities:
											Net income for the period				$	320				$	522				$	1,669					$	1,693
											Adjustments to reconcile net income to net cash flows from operating activities:
												Depreciation and amortization				508					453					1,898						1,819
												Impairment of assets				-					80					-						80
												Gain on sale of TVtropolis				-					-					(47)						-
												Program rights amortization				17					13					52						73
												Finance costs				196					183					742						671
												Income tax expense				115					112					596						610
												Pension contributions, net of expense				(7)					(7)					(32)						(36)
												Stock-based compensation expense				18					57					84						77
												Gain on spectrum distribution				-					(233)					-						(233)
												Other				(7)					(22)					(14)						(25)
																1,160					1,158					4,948						4,729
											Change in non-cash operating working capital items					167					(108)					238						(248)
																1,327					1,050					5,186						4,481
											Income taxes paid					(170)					(257)					(496)						(380)
											Interest paid					(85)					(125)					(700)						(680)
											Cash provided by operating activities					1,072					668					3,990						3,421
Investing activities:
											Additions to property, plant and equipment					(703)					(707)					(2,240)						(2,142)
											Change in non-cash working capital items related to property, plant and equipment					41					185					(114)						136
											Acquisitions and other strategic transactions, net of cash acquired					(233)					-					(1,080)						-
											Proceeds on sale of TVtropolis					-					-					59						-
											Investments					-					(167)					-						(707)
											Additions to program rights					(28)					(23)					(69)						(90)
											Other					3					2					(29)						(31)
											Cash provided by investing activities					(920)					(710)					(3,473)						(2,834)
Financing activities:
											Issuance of long-term debt					1,548					-					2,578						2,090
											Repayment of long-term debt					-					-					(356)						(1,240)
											Payment on settlement of cross-currency interest rate exchange agreements and debt-related forward contracts					-					-					(1,029)						-
											Proceeds on settlement of cross-currency interest rate  exchange agreements and debt-related forward contracts					-					-					662						-
											Transaction costs incurred					(20)					-					(37)						(14)
											Proceeds received on short-term borrowings					-					-					650						-
											Issuance (repurchase) of Class B Non-Voting shares					1					-					(21)						(350)
											Dividends paid					(224)					(204)					(876)						(803)
											Cash provided by financing activities					1,305					(204)					1,571						(317)
Change in cash and cash equivalents																1,457					(246)					2,088						270
Cash and cash equivalents, beginning of period																844					459					213						(57)
Cash and cash equivalents, end of period															$	2,301				$	213				$	2,301					$	213
The change in non-cash operating working capital items is as follows:
											Accounts receivable				$	(130)				$	(101)				$	58					$	15
											Other current assets					73					(51)					9						(131)
											Accounts payable and accrued liabilities					209					10					180						(140)
											Unearned revenue					15					34					(9)						8
															$	167				$	(108)				$	238					$	(248)

 

Audited Full Year 2013 Financial Statements

In the next few weeks, we intend to file with securities regulators in Canada and the US our Audited Annual Consolidated Financial Statements and Notes thereto for the year ended December 31, 2013 and our MD&A in respect of such annual financial statements. Notification of such filings will be made by a press release and such statements will be made available on the rogers.com/investors, sedar.com and sec.gov websites or upon request.

About Forward-Looking Information 

This summary of our earnings release includes "forward-looking information" within the meaning of applicable securities laws and assumptions concerning, among other things our business, its operations and its financial performance and condition approved by management on the date of this summary of our earnings release. This forward-looking information and these assumptions include, but are not limited to, statements with respect to our objectives and strategies to achieve those objectives, as well as statements with respect to 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 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
• were approved by management on the date of this summary of our earnings release.

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
• free cash flow
• dividend payments
• expected growth in subscribers and the services they subscribe to
• the cost of acquiring 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 "2014 Full Year Consolidated Guidance" relating to our 2014 consolidated guidance on adjusted operating profit, property plant and equipment expenditures, and after-tax 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
• product pricing levels and competitive intensity
• subscriber growth
• price, 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 summary of our earnings release 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
• economic conditions
• technological change
• the integration of acquisitions
• unanticipated changes in content or equipment costs
• changing conditions in the entertainment, information and communications industries
• regulatory changes
• litigation and tax matters
• the level of competitive intensity
• the emergence of new opportunities.

These factors can also affect our objectives, strategies and intentions. Many of these factors are beyond our control and current expectation or knowledge. Should one or more of these risks, uncertainties or other factors materialize, our objectives, strategies or intentions change, or any other factors or assumptions underlying the forward-looking information prove incorrect, our actual results and our plans could vary significantly from what we currently foresee. Accordingly, we warn investors to exercise caution when considering statements containing forward-looking information and that it would be unreasonable to rely on such statements as creating legal rights regarding our future results or plans. We are under no obligation (and we expressly disclaim any such obligation) to update or alter any statements containing forward-looking information or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law. All of the forward-looking information in this summary of our earnings release is qualified by the cautionary statements herein.

Before you make an investment decision

Before making any investment decisions and for a detailed discussion of the risks, uncertainties and environment associated with our business, fully review "Operating Environment", "Risks and Uncertainties Affecting Our Businesses", "Government Regulation and Regulatory Developments" in our 2012 Annual MD&A. Our 2012 Annual MD&A can be found online at rogers.com/investors, sedar.com and sec.gov or is available directly from Rogers upon request.

About Rogers Communications Inc.

Rogers Communications is a leading diversified Canadian communications and media company. We are Canada's largest provider of wireless communications services and one of Canada's leading providers of cable television, high-speed Internet and telephony services to consumers and businesses. Through Rogers Media, we are engaged in radio and television broadcasting, televised shopping, magazines and trade publications, sports entertainment, and digital media.

We are publicly traded on the Toronto Stock Exchange (TSX: RCI.A and RCI.B) and on the New York Stock Exchange (NYSE: RCI).

For further information about the Rogers group of companies, please visit rogers.com/investors.

Quarterly Investment Community Teleconference

The fourth quarter 2013 results teleconference will be held on:

• February 12, 2014
• 8:00 a.m. Eastern Time
• webcast available at rogers.com/webcast.

A rebroadcast will be available at rogers.com/investors on the Events and Presentations page for at least two weeks following the teleconference. Additionally, investors should note that from time to time Rogers management presents at brokerage sponsored investor conferences.  Most often, but not always, these conferences are webcast by the hosting brokerage firm, and when they are webcast, links are made available on Rogers' website at rogers.com/events and are placed there generally at least two days before the conference.

For More Information

You can find additional information relating to us on our website (rogers.com/investors), on SEDAR (sedar.com) and on EDGAR (sec.gov) or by e-mailing your request to [email protected]. Information on or connected to these and any other websites referenced above is not part of this summary of our earnings release.

You can also go to rogers.com/investors for information about our governance practices, corporate social responsibility reporting, a glossary of communications and media industry terms, and additional information about our business.

 

 

SOURCE: Rogers Communications Inc.

Investment community contacts
Bruce M. Mann
416.935.3532
[email protected]

Dan R. Coombes
416.935.3550
[email protected]

Media contact 

Terrie Tweddle
416.935.4727
[email protected]