Rogers Communications Reports Third Quarter 2013 Results

October 24, 2013 Mergers & Acquisitions 0

Rogers Communications Reports Third Quarter 2013 Results

PR Newswire

TORONTO, Oct. 24, 2013

Revenue Grew 2% to $3.2 Billion with Adjusted Operating Profit up 4%;

Wireless Adjusted Operating Profit Margin Expanded and Customer Base
Grew with 64,000 Wireless Postpaid Net Subscriber Additions While
Postpaid Churn Declines to 1.23%;

Cable Revenue and Adjusted Operating Profit Margin Both Grew Reflecting
Continued Internet and Cable Telephony Growth;

Business Solutions and Media Delivered Accelerating Growth in Revenue
and Adjusted Operating Profit;

Consolidated Pre-tax Cash Flow Grew 5% and Adjusted Diluted Earnings Per
Share Up 1% Reflecting Top Line Growth and Continued Efficiency
Improvements

TORONTO, Oct. 24, 2013 /PRNewswire/ – Rogers Communications Inc., a leading
diversified Canadian communications and media company, today announced
its unaudited consolidated financial and operating results for the
third quarter ended September 30, 2013, prepared in accordance with
International Financial Reporting Standards (“IFRS”).

Financial Highlights from Continuing Operations

Three months ended September 30 Nine months ended September 30
(In millions of dollars, except per share amounts) 2013 2012 % Chg 2013 2012 % Chg
Operating revenue $ 3,224 $ 3,176 2 $ 9,463 $ 9,225 3
As adjusted 1 :
Operating profit 1 1,341 1,288 4 3,826 3,658 5
Net income 1 501 495 1 1,412 1,333 6
Diluted earnings per share 1 0.97 0.96 1 2.73 2.55 7
Pre-tax free cash flow 1 620 589 5 1,765 1,733 2
Operating income 819 818 – 2,309 2,190 5
Net income 464 466 – 1,349 1,203 12
Diluted earnings per share 0.90 0.90 – 2.60 2.30 13
Cash provided by operating activities 1,052 1,146 (8) 2,918 2,753 6
1 For details on the determination of the ‘adjusted’ amounts and pre-tax
free cash flow, which are non-GAAP measures, see the section “Non-GAAP
Measures”. The items do not have any standardized meaning under IFRS
and are therefore unlikely to be comparable to similar measures
presented by other companies.

“During the third quarter, we delivered both revenue and adjusted
operating profit growth with strong data growth across our leading
wireless and broadband cable platforms,” said Nadir Mohamed, President
& Chief Executive Officer of Rogers Communications Inc. “We also
delivered strong and expanding margins at our Wireless and Cable
segments as well as accelerated growth at our Business Solutions and
Media segments. And we made significant investments in our networks,
Media brands and service infrastructure while delivering even greater
value to our customers. While there has been a continued level of
heightened regulatory activity in the Canadian telecom sector, our core
focus remains steadfastly upon delivering the most innovative products,
greater value and reliable service to our customers.”

Quarterly Highlights

Revenue increased

  • Consolidated revenue growth of 2% reflected 4% revenue growth in Cable,
    8% in Business Solutions and 12% in Media compared to the same quarter
    last year, partly offset by a 2% decline in Wireless revenue. The
    decline in Wireless mainly represents a 1% decline in network revenue
    related to the introduction of lower priced roaming plans and pricing
    changes over the past year. Excluding the decline in roaming revenue
    this quarter compared to the third quarter of the previous year,
    Wireless network revenue would have increased 1% compared to the third
    quarter of last year. The modest slowing of cable revenue growth
    reflects the basic competitive subscriber losses offset by continued
    growth in Internet and home phone.

  • Wireless data revenue grew by 15% from last year and now represents 48%
    of Wireless network revenue. Wireless activated and upgraded 574,000
    smartphones, of which approximately 38% were new subscribers. Customers
    with smartphones now represent 73% of Wireless postpaid subscribers.

Continued gains in cost efficiency drove strong margins

  • Consolidated adjusted operating profit increased by 4% compared to the
    same quarter last year, due largely to cost efficiencies, with a 4%
    increase in Wireless, 5% increase in Cable, 32% increase in Business
    Solutions, and 10% increase in Media.

  • The improvement in consolidated adjusted operating profit margin of
    41.6% was driven by strong adjusted operating profit margins of 50.7%
    at Wireless and 48.7% at Cable. Adjusted net income and adjusted
    diluted earnings per share of $0.97 both increased 1% from the same
    quarter last year.

  • Consolidated operating income, net income and diluted earnings per share
    were consistent with the same quarter last year, driven by increases in
    restructuring, acquisition and other expenses and depreciation and
    amortization, offset by a reduction in stock-based compensation
    expense.

Continued to enhance our leading networks to monetize rapid data growth

  • Rogers was named both the fastest broadband Internet service provider
    and the fastest wireless network in Canada by PCMag.com, a leading U.S. based technology website.

  • Pivot Data Centres and Granite Networks acquisitions were announced late
    in the quarter. These two acquisitions, combined with Blackiron acquired earlier this
    year, further positions Business Solutions as a leader in Canadian data
    centre and hosting services and will enhance Business Solutions’
    ability to serve customers in key markets with enhanced managed and
    cloud service offerings.

Continued to enrich the customer experience

  • Rogers loyalty credit card received regulatory approval to launch and
    augments our previously announced Rogers First Rewards loyalty program
    that allows customers to earn points on their eligible purchases and
    redeem them for a wide selection of Rogers’ products and services.
    Rogers’ customers will be able to participate in the credit card
    program enabling them to accelerate the rate at which they earn loyalty
    reward points.

  • Share Everything, Canada’s first complete wireless share plans, were
    launched allowing individuals, families and small businesses to share
    wireless data, unlimited nationwide talk and text, call display and
    voicemail across up to 10 wireless devices.

  • Connected Car M2M agreement with Sprint was announced to bring the first
    comprehensive in-car infotainment solution to the Canadian market.
    Vehicles that use the Sprint Velocity solution will have access to a
    seamless, connected experience on the road, including infotainment,
    navigation, climate control, security, emergency services and vehicle
    diagnostics that are all available with a convenient in-dash touch
    screen connected to Rogers’ advanced wireless networks.

  • LTE U.S. wireless roaming was launched with AT&T, making Rogers the
    first Canadian carrier to offer LTE roaming for customers travelling to
    the U.S. Rogers is also the only Canadian carrier to have launched LTE
    roaming in Switzerland, Hong Kong and South Korea.

  • Launched a hybrid wireless home and small business phone solution that
    operates on our national wireless network. The service is available in
    regions outside Rogers’ cable territories and offers a traditional home
    or office phone service without the need for a landline or Internet
    connection.

  • Next generation superior TV experience was unveiled with NextBox 3.0
    giving viewers unprecedented access to record up to eight HD programs
    at one time and store up to 240 hours of HD content. The NextBox 3.0
    experience includes whole home PVR capability and becomes a wireless TV
    experience allowing viewers to navigate their cable guide, use a
    virtual remote, set PVR recordings and live stream channels all from a
    tablet or smartphone.

  • Rogers Smart Home Monitoring, our innovative home security and
    automation system, was expanded to include residents of New Brunswick
    and Newfoundland. Rogers Smart Home Monitoring allows customers to
    easily control and automate their home security, lights, cameras,
    thermostats and appliances and to monitor for water leaks and carbon
    monoxide levels, all remotely through their smartphone, tablet or
    computer.

Media accelerates digital content and enhances The Shopping Channel

  • Next Issue Canada, an innovative, all-you-can-read subscription digital
    magazine service that provides consumers with exclusive and unlimited
    access to a catalogue of more than 100 premium Canadian and U.S.
    titles, was launched by Rogers Media. Next Issue Canada will deliver
    access to our leading brands alongside many of the most popular U.S.
    magazines titles.

  • The Shopping Channel launched a brighter, easier, and more engaging
    multi-channel retail experience and a refreshed on-air and online look,
    an all-new mobile app, special-themed programming and improved
    shipping. The leading interactive and only Canadian multi-channel
    retailer is also adding on-air social media engagement, new leading
    brands and more celebrity guest appearances.

Balance sheet and available liquidity remained strong

  • Generated $620 million of consolidated quarterly pre-tax free cash flow,
    defined as adjusted operating profit less property, plant and equipment
    expenditures and interest on long-term debt (net of capitalization).
    This was an increase of 5% over the same quarter last year, and
    reflects growth of adjusted operating profit partly offset by a
    modestly increased level of expenditures on property, plant and
    equipment. Cash provided by operating activities was 8% lower than the
    same quarter last year mainly because of an increase in cash income
    taxes.

  • Ended the third quarter with an aggregate of $3.1 billion of available
    liquidity, comprised of $844 million cash on hand, $2.0 billion
    available under our bank credit facility and $250 million available
    under our $900 million accounts receivable securitization program.

  • Subsequent to the quarter end, on October 2, 2013 we issued U.S.$1.5
    billion     of senior unsecured notes, consisting of U.S.$850 million of
    4.10% Senior Notes due 2023 and U.S.$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.

Announcement of newly appointed CEO

  • Guy Laurence was announced as Rogers’ President and Chief Executive
    Officer, effective in December 2013, succeeding Nadir Mohamed who
    announced his plan earlier this year to retire from Rogers. Mr.
    Laurence is a seasoned executive who brings 30 years of global
    experience in the telecommunications and media industries.

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

This earnings release is a summary of our third quarter 2013 results,
and should read in conjunction with our third quarter 2013 MD&A, our
third quarter 2013 Unaudited Interim Condensed Consolidated Financial
Statements and Notes thereto, our 2012 annual MD&A and our 2012 Audited
Annual Consolidated Financial Statements and Notes thereto, and our
other recent filings with Canadian and U.S. securities regulatory
authorities, which are available on SEDAR at sedar.com or EDGAR at sec.gov.

This earnings release contains non-GAAP measures such as adjusted
operating profit, adjusted net income, adjusted basic and diluted
earnings per share, pre-tax free cash flow and after-tax free cash
flow. These non-GAAP measures should not be considered as a substitute
or alternative for GAAP measures. See the section “Non-GAAP Measures”
for a reconciliation of these measures, which do not have any
standardized meaning under IFRS and are therefore unlikely to be
comparable to similar measures presented by other companies.

The financial information presented is in accordance with IFRS for
interim financial statements and all amounts are in Canadian dollars
unless otherwise stated. As this earnings release includes
forward-looking statements and assumptions, readers should carefully
review the section of this earnings release entitled “About
Forward-Looking 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 holds a 37.5% interest in Maple Leaf Sports &
Entertainment Ltd. (“MLSE”) among other investments.

Consolidated Financial Results

Three months ended September 30 Nine months ended September 30
(In millions of dollars, except per share amounts) 2013 2012 % Chg 2013 2012 % Chg
Operating revenue
Wireless $ 1,846 $ 1,889 (2) $ 5,419 $ 5,360 1
Cable 873 838 4 2,604 2,506 4
Business Solutions 93 86 8 276 263 5
Media 440 392 12 1,251 1,186 5
Corporate items and intercompany eliminations (28) (29) (3) (87) (90) (3)
Operating revenue 3,224 3,176 2 9,463 9,225 3
Adjusted operating profit
Wireless 875 843 4 2,461 2,376 4
Cable 425 403 5 1,285 1,184 9
Business Solutions 29 22 32 77 62 24
Media 55 50 10 112 115 (3)
Corporate items and intercompany eliminations (43) (30) (43) (109) (79) (38)
Adjusted operating profit1 1,341 1,288 4 3,826 3,658 5
Operating income 819 818 – 2,309 2,190 5
Net income from continuing operations 464 466 – 1,349 1,203 12
Diluted earnings per share – continuing operations 0.90 0.90 – 2.60 2.30 13
Net income 464 466 – 1,349 1,171 15
Diluted earnings per share 0.90 0.90 – 2.60 2.24 16
Adjusted net income1 501 495 1 1,412 1,333 6
Adjusted diluted earnings per share1 0.97 0.96 1 2.73 2.55 7
Additions to property, plant and equipment $ 548 $ 528 4 $ 1,537 $ 1,435 7
Pre-tax free cash flow1 620 589 5 1,765 1,733 2
After-tax free cash flow1 506 561 (10) 1,439 1,610 (11)
Cash provided by operating activities 1,052 1,146 (8) 2,918 2,753 6
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, in each case determined in accordance
with IFRS. See the section “Non-GAAP Measures” for a reconciliation of
these measures, which do not have any standardized meaning under IFRS
and are therefore unlikely to be comparable to similar measures
presented by other companies.

Key Changes in Financial Results from 2012

Three months ended Nine months ended
(In millions of dollars) September 30 September 30
Operating revenue changes – higher (lower):
Network revenue – Wireless $ (18) $ 71
Equipment sales – Wireless (25) (12)
Cable 35 98
Business Solutions 7 13
Media 48 65
Corporate items and intercompany eliminations 1 3
Higher operating revenue compared to 2012 48 238
Adjusted operating profit changes – higher (lower):
Wireless 32 85
Cable 22 101
Business Solutions 7 15
Media 5 (3)
Corporate items and intercompany eliminations (13) (30)
Higher adjusted operating profit1 compared to 2012 53 168
Lower (higher) stock-based compensation expense 19 (46)
(Higher) lower restructuring, acquisition and other expenses (31) 21
Higher depreciation and amortization (40) (24)
Higher operating income compared to 2012 1 119
Higher finance costs (11) (58)
Gain on sale of interest in TVtropolis – 47
Lower income taxes 5 27
Other 3 11
Change in net income from continuing operations from 2012 (2) 146
Loss from discontinued operations in 2012 – 32
Change in net income compared to 2012 (2) 178
1 As defined. See the section “Non-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, pricing changes made over the past year and
heightened competition in wireless voice services, partially offset by
higher adoption and usage of wireless data services. Year to date
network revenue increased because growth in data services outpaced
voice service declines.

Cable operating revenue was higher this quarter and year to date
compared to the same periods last year, mainly because of Internet and
cable phone growth, partially offset by a decline in television
revenue.

Media operating revenue was higher this quarter and year to date
compared to the same periods last year, mainly because of revenue
growth at Sportsnet, higher attendance at Toronto Blue Jays games and
higher sales at The Shopping Channel.

Adjusted operating profit
Wireless adjusted operating profit was higher this quarter and year to
date compared to the same periods last year, mainly because of the
changes in revenue described above and cost management and productivity
initiatives we are implementing across various segments, as well as a
lower cost of equipment sales.

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

Media’s adjusted operating profit was higher this quarter and slightly
lower year to date compared to the same periods last year. The increase
in operating revenue was offset by higher player salaries at the
Toronto Blue Jays, additional operating costs following the acquisition
of theScore and higher merchandise spending at The Shopping Channel.
The increase year to date also reflects increased programming spending
at Sportsnet because more NHL games were aired in the first two
quarters of the year due to the NHL lockout in the 2012/2013 season.

Operating income and net income
Operating income and net income this quarter were consistent with the
same quarter last year because the increase in adjusted operating
profit was offset by higher restructuring, acquisition and other
expenses and higher depreciation and amortization. The increase in net
income year to date was for the same reasons as well as a $47 million
gain on sale of our interest in TVtropolis.

Financial Guidance
We are revising the guidance range provided earlier in the year for full
year 2013 cash income tax payments to approximately $500 million, down
from the range of $650 million to $700 million previously provided.
This $150 to $200 million improvement reflects the results of a number
of tax planning initiatives including the timing impacts of certain
income and tax deductions and credits.

We have no changes to the 2013 annual consolidated guidance ranges for
adjusted operating profit, additions to property, plant and equipment
or pre-tax free cash flow that we provided with our 2012 Annual MD&A
report. See the section “About Forward-Looking Information” and the
sections “Caution Regarding Forward-Looking Statements, Risks and
Assumptions” in our 2012 Annual MD&A.

Results of our Business Segments

WIRELESS

Financial results

Three months ended September 30 Nine months ended September 30
(In millions of dollars, except margin) 2013 2012 % Chg 2013 2012 % Chg
Operating revenue
Network revenue $ 1,726 $ 1,744 (1) $ 5,079 $ 5,008 1
Equipment sales 120 145 (17) 340 352 (3)
Total operating revenue – Wireless 1,846 1,889 (2) 5,419 5,360 1
Operating expenses
Cost of equipment1 (321) (379) (15) (1,048) (1,027) 2
Other operating expenses (650) (667) (3) (1,910) (1,957) (2)
(971) (1,046) (7) (2,958) (2,984) (1)
Adjusted operating profit – Wireless $ 875 $ 843 4 $ 2,461 $ 2,376 4
Adjusted operating profit margin as
% of network revenue 50.7% 48.3% 48.5% 47.4%
Additions to property, plant and equipment $ 192 $ 299 (36) $ 622 $ 737 (16)
Data revenue included in network revenue $ 824 $ 719 15 $ 2,350 $ 1,995 18
Data revenue as a % of network revenue 48% 41% 46% 40%
1Includes the cost of equipment sales and direct channel subsidies.

Subscriber results1

(Subscriber statistics in thousands, Three months ended September 30 Nine months ended September 30
except ARPU and churn) 2013 2012 Chg 2013 2012 Chg
Postpaid
Gross additions 359 386 (27) 1,052 1,070 (18)
Net additions 64 76 (12) 194 210 (16)
Total postpaid subscribers 8,040 7,788 252 8,040 7,788 252
Monthly churn 1.23% 1.34% (0.11) pts 1.21% 1.25% (0.04) pts
Monthly average revenue per user (“ARPU”)2 $ 68.77 $ 71.50 $ (2.73) $ 68.22 $ 69.13 $ (0.91)
Prepaid
Gross additions 161 186 (25) 405 496 (91)
Net additions (losses) 16 1 15 (133) (117) (16)
Total prepaid subscribers 1,458 1,644 (186) 1,458 1,644 (186)
Monthly churn 3.33% 3.77% (0.44) pts 3.99% 4.05% (0.06) pts
ARPU2 $ 16.84 $ 16.73 $ 0.11 $ 15.70 $ 15.83 $ (0.13)
Blended ARPU2 $ 60.81 $ 61.92 $ (1.11) $ 59.91 $ 59.55 $ 0.36
Data ARPU 29.03 25.53 3.50 27.72 23.72 4.00
Voice ARPU 31.78 36.39 (4.61) 32.19 35.83 (3.64)
1Does not include subscribers from our wireless home phone product.
2ARPU is a key performance indicator.


Slightly lower wireless revenue this quarter due to new lower priced
roaming plans
Network revenue was down slightly this quarter compared to last year.
This was the net effect of:

  • industry leadership to new lower priced U.S. and international roaming
    plans which offer consumers more value
  • the introduction of simplified share everything price plans reduced
    voice feature revenue but we believe this contributed to a reduction of
    11 basis points in quarterly churn levels compared to last year
  • higher data revenue related to an increase in subscriber levels and
    higher usage of wireless data services.

Excluding the decline in roaming revenue this quarter compared to the
same period last year, network revenue would have increased 1% and data
revenue would have increased 22%.

Network revenue was slightly higher year to date compared to last year
as a net result of:

  • a higher postpaid subscriber base
  • higher adoption and usage of wireless data services.

Wireless data revenue was higher this quarter and year to date compared
to last year mainly because of the continued penetration and growing
use of smartphones, tablet devices and wireless laptops, which
increased the use of e-mail, wireless, Internet access, text messaging,
data roaming, and other wireless data services. Wireless data revenue
represented approximately 48% of total network revenue this quarter,
compared to approximately 41% in the same period last year.

Gross postpaid subscriber additions were 359,000 this quarter, 7% lower
than the same period last year. Net postpaid subscriber additions were
64,000 this quarter, 16% lower than in 2012. We believe that the
industry transition from three year to two year plans may have slowed
overall wireless growth during this quarter.

We activated and upgraded approximately 574,000 smartphones this
quarter, compared to approximately 707,000 in the same period last
year. The decrease was mainly the result of a 24% reduction in hardware
upgrades by existing customers during the quarter. The percentage of
subscribers with smartphones increased to 73% of the total postpaid
subscriber base at September 30, 2013, compared to 65% last year.
Smartphone subscribers typically generate significantly higher ARPU,
are less likely to churn and more likely to commit to term contracts
than non-smartphone subscribers.

Blended ARPU decreased slightly this quarter compared to the same period
last year. Excluding the decline in roaming, blended ARPU would have
increased 0.4% this quarter compared to the same period last year.

The slower growth in wireless data revenue from the second quarter of
2013 reflects the combined effect of:

  • new lower-priced U.S. and international data roaming plans introduced
    midway through the second quarter
  • heightened promotions during the second quarter that offered
    introductory months of free service.

The accelerated decline in the voice component of revenue and ARPU from
last quarter primarily reflects the further penetration of simplified
share everything plans which bundle in certain voice features such as
voice mail and caller ID that prior to the first quarter of 2013 were
charged on an individual basis.

Lower equipment sales
Revenue from equipment sales is lower this quarter and year to date,
mainly the result of fewer hardware upgrades by existing subscribers
and a reduction in the number of gross activations. This was offset by
the trend of increased revenue due to the shift in the mix of
smartphones activated to higher priced devices.

Lower operating expenses
The cost of equipment sales was 15% lower this quarter and 2% higher
year to date compared to the same period last year. The decrease for
the quarter was because fewer existing customers upgraded hardware
during the quarter versus the prior year. The year to date increase of
2% reflects the higher cost per unit of smartphones versus last year.

Total customer retention spending (including subsidies on handset
upgrades) was $192 million this quarter compared to $214 million in the
same period last year. The reduction was mainly the result of fewer
hardware upgrades by existing subscribers. It was also the result of
improvements we implemented in our handset upgrade processes earlier in
the year and the device price changes following the recent shift to two
year contracts. Year to date retention spending increased to $647
million compared to $622 million last year mainly due to a shift in the
mix of smartphones activated to higher value devices.

Other operating expenses (excluding retention spending) were down by 3%
this quarter and year to date, due to a continued focus on cost
productivity initiatives we are implementing across various functions.

Higher adjusted operating profit
Adjusted operating profit was 4% higher this quarter and year to date
compared to the same periods last year. The increase for the quarter
reflects the net impact of continued growth of wireless data, lower
volumes of hardware sales and upgrades, and our improvements in cost
management and efficiency improvements. The increase year to date
reflects higher network revenue and our improvements in cost management
and efficiency.

CABLE

Financial results

Three months ended September 30 Nine months ended September 30
(In millions of dollars, except margin) 20131 2012 % Chg 20131 2012 % Chg
Operating revenue
Television $ 452 $ 466 (3) $ 1,367 $ 1,406 (3)
Internet 294 249 18 858 735 17
Phone 125 119 5 373 355 5
Service revenue 871 834 4 2,598 2,496 4
Equipment sales 2 4 (50) 6 10 (40)
Total operating revenue – Cable 873 838 4 2,604 2,506 4
Operating expenses
Cost of equipment (2) (5) (60) (4) (14) (71)
Other operating expenses (446) (430) 4 (1,315) (1,308) 1
(448) (435) 3 (1,319) (1,322) –
Adjusted operating profit – Cable $ 425 $ 403 5 $ 1,285 $ 1,184 9
Adjusted operating profit margin 48.7% 48.1% 49.3% 47.2%
Additions to property, plant and equipment $ 299 $ 186 61 $ 747 $ 573 30
1Results of operations include Mountain Cable’s operating results as of
May 1, 2013 (the date of acquisition).

Subscriber results

Three months ended September 30 Nine months ended September 30
(Subscriber statistics in thousands) 2013 2012 Chg 2013 2012 Chg
Cable homes passed1 3,956 3,799 157 3,956 3,799 157
Television
Net losses (39) (16) (23) (99) (58) (41)
Total television subscribers1 2,155 2,239 (84) 2,155 2,239 (84)
Internet
Net additions 18 29 (11) 50 51 (1)
Total Internet subscribers1 1,948 1,844 104 1,948 1,844 104
Phone
Net additions 3 4 (1) 37 13 24
Total phone subscribers1 1,148 1,065 83 1,148 1,065 83
Total service units1,2
Net additions (losses) (18) 17 (35) (12) 6 (18)
Total service units 5,251 5,148 103 5,251 5,148 103
1On 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 September 30, 2013. The
acquisition also increased homes passed by 59,000.
2Includes television, Internet and phone subscribers.


Revenue and subscribers
Overall cable revenue grew at a steady 4% rate this quarter compared to
the same period last year, the net result of:

  • continued growth in subscribers for our Internet and phone products
  • greater penetration of the small business market
  • partially offset by television subscriber losses.

Television revenue lower
Revenue from television was down 3% this quarter and year to date
compared to the same periods last year, the net result of:

  • the year-over-year decline in television subscribers
  • the impact of promotional and retention pricing activity associated with
    heightened competition
  • partially offset by pricing increases during the year.

The digital cable subscriber base represented 83% of our total
television subscriber base at the end of the quarter, compared to 79%
at September 30, 2012. We believe that the larger selection of digital
content, video on-demand, HDTV and PVR equipment continues to
contribute to the increasing penetration of the digital subscriber base
as a percentage of our total television subscriber base.

Internet revenue and subscribers higher
Internet revenue was 18% higher this quarter and 17% higher year to date
compared to the same periods last year. This was the net result of:

  • a larger Internet subscriber base
  • general movement to higher end speed and usage tiers
  • an increase in Internet service pricing.

Our Internet customer base is now 1.9 million subscribers, and Internet
penetration is approximately:

  • 90% of our television subscribers, compared to 82% for 2012
  • 49% of the homes passed by our cable network; unchanged from the third
    quarter last year.

Phone revenue and subscribers higher
Phone revenue was 5% higher this quarter and year to date compared to
the same periods last year, the net result of:

  • higher phone customer base and pricing
  • partially offset by higher promotional pricing activity.

Phone lines in service grew 8% from the third quarter last year and
represent:

  • 53% of our television subscribers, compared to 48% last year.
  • 29% of the homes passed by our cable network, compared to 28% last year

Operating expenses up this quarter and relatively flat year to date
Operating expenses increased 3% this quarter and were unchanged year to
date compared to the same periods last year.
The increase this quarter related to higher investments in customer care
and network.

Higher adjusted operating profit
Adjusted operating profit was 5% higher this quarter and 9% higher year
to date compared to the same periods last year, mainly resulting from
higher service revenue, investments in certain areas and our
improvements in efficiency. The increase in the adjusted operating
profit margin reflects a continued shift in product mix to the higher
margin Internet and phone products.

Excluding the Mountain Cable acquisition that closed in the second
quarter of 2013:

  • revenue would have been 2% higher this quarter and 3% higher year to
    date
  • adjusted operating profit would have been 3% higher this quarter and 7%
    higher year to date compared to the same periods last year.

BUSINESS SOLUTIONS

Financial results

Three months ended September 30 Nine months ended September 30
(In millions of dollars, except margin) 20131 2012 % Chg 20131 2012 % Chg
Operating revenue
Next generation $ 54 $ 41 32 $ 150 $ 119 26
Legacy 38 44 (14) 115 140 (18)
Service revenue 92 85 8 265 259 2
Equipment sales 1 1 – 11 4 175
Total operating revenue – Business Solutions 93 86 8 276 263 5
Operating expenses (64) (64) – (199) (201) (1)
Adjusted operating profit – Business Solutions $ 29 $ 22 32 $ 77 $ 62 24
Adjusted operating profit margin 31.2% 25.6% 27.9% 23.6%
Additions to property, plant, and equipment $ 20 $ 15 33 $ 66 $ 45 47
1 Results of operations include Blackiron’s operating results as of April
17, 2013 (the date of acquisition).


Higher operating revenue
Operating revenue increased 8% this quarter and 5% year to date compared
to the same periods last year, the net result of:

  • higher revenue from next generation services, which grew by 32% this
    quarter (26% year to date) largely due to the acquisition of Blackiron
    during the second quarter of this year
  • a non-recurring sale of equipment in the first quarter of this year
  • partially offset by lower revenue from legacy services.

Business Solutions is focusing mainly on IP-based services, and
increasingly on leveraging higher margin on-net and near-net next
generation 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
represent 59% 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.

Operating expenses
Operating expenses were unchanged this quarter and 1% lower year to date
compared to the same periods last year because:

  • legacy service-related costs were down because volumes were lower
  • ongoing initiatives improved costs and productivity.

Business Solutions continued to focus on implementing a program of cost
reduction and efficiency improvement initiatives to control the overall
growth in operating expenses and to increase adjusted operating profit
margin.

Higher adjusted operating profit
Adjusted operating profit was 32% higher this quarter and 24% higher
year to date compared to the same periods last year, resulting from
growth in higher margin next generation business, coupled with cost
efficiencies. This increased the adjusted operating profit margin to
31.2% this quarter from 25.6% in the same period last year, and to
27.9% year to date from 23.6% in the same period last year.

Excluding the Blackiron acquisition that closed in the second quarter of
2013:

  • operating revenue would have been 3% lower this quarter and 2% lower
    year to date compared to same periods last year
  • adjusted operating profit would have been 25% higher this quarter and
    19% higher year to date compared to the same periods last year.

Acquisitions
We acquired Pivot Data Centres on October 1, 2013 for $155 million
(after the end of the third quarter), and Granite Networks on September
19, 2013 for $6 million. These two acquisitions, combined with our acquisition of Blackiron
earlier this year, positions Business Solutions as a Canadian leader in
data centre and hosting services.

MEDIA

Financial results

Three months ended September 30 Nine months ended September 30
(In millions of dollars, except margin) 20131 2012 % Chg 20131 2012 % Chg
Operating revenue – Media $ 440 $ 392 12 $ 1,251 $ 1,186 5
Operating expenses (385) (342) 13 (1,139) (1,071) 6
Adjusted operating profit – Media $ 55 $ 50 10 $ 112 $ 115 (3)
Adjusted operating profit margin 12.5% 12.8% 9.0% 9.7%
Additions to property, plant and equipment $ 18 $ 11 64 $ 45 $ 32 41
1 Results of operations include theScore’s operating results as of April
30, 2013 (the date of acquisition).


Higher operating revenue
Operating revenue was 12% higher this quarter and 5% higher year to date
compared to the same periods last year, mainly from:

  • increased subscription and advertising revenue generated by the
    Sportsnet properties, including the acquisition of theScore
  • higher sales at The Shopping Channel
  • higher attendance at the Toronto Blue Jays games.

Higher operating expenses

The increase in operating expenses this quarter compared to the same
period last year was mainly the result of higher player salaries at the
Toronto Blue Jays, additional operating costs following the acquisition
of theScore and higher merchandise spending at The Shopping Channel.
The increase year to date also reflects higher programming spending at
Sportsnet because more NHL games were aired during the first two
quarters of the year due to the accelerated 2013 schedule that resumed
at the end of the NHL lockout in the 2012/2013 season. Player salaries
at the Toronto Blue Jays were $21 million higher this quarter and $41
million higher year to date.

Higher adjusted operating profit this quarter
Adjusted operating profit was up 10% this quarter and down 3% year to
date compared to last year, reflecting the revenue and expense changes
described above.

Excluding the acquisition of theScore that closed in the second quarter
of 2013:

  • operating revenue would have been 10% higher this quarter and 4% higher
    year to date compared to last year
  • adjusted operating profit would have been 6% higher this quarter.

Excluding the acquisition of theScore and the residual impact of the NHL
lockout, year to date adjusted operating profit would have been 3%
higher than the same period last year.

ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT

Three months ended September 30 Nine months ended September 30
(In millions of dollars) 2013 2012 % Chg 2013 2012 % Chg
Additions to property, plant and equipment
Wireless $ 192 $ 299 (36) $ 622 $ 737 (16)
Cable 299 186 61 747 573 30
Business Solutions 20 15 33 66 45 47
Media 18 11 64 45 32 41
Corporate 19 17 12 57 48 19
Total additions to property, plant and equipment $ 548 $ 528 4 $ 1,537 $ 1,435 7


Wireless
Wireless’ additions were lower this quarter and year to date compared to
last year due to the timing of the continued deployment of our LTE
network and upgrades to the network to enhance the LTE and HSPA+ user
experience. These investments were partially offset by higher
investments to improve the quality and coverage of the network. By the
end of the year our LTE network is expected to reach approximately 73%
of Canada’s population.

Cable
Cable additions were higher this quarter and year to date compared to
2012 because of the timing of initiatives related to service
enhancements, including providing more content and higher speeds on our
video and data platforms, and increased investment in customer premise
equipment related to the rollout of Nextbox 2.0 and Nextbox 3.0 digital
set-top boxes and the analog to digital subscriber migration.

The analog to digital subscriber migration will continue to strengthen
the customer experience and, once complete (expected in 2015), will
allow us to reclaim significant amounts of network capacity and reduce
network operating and maintenance costs. The migration from analog to
digital requires additional spending because it involves fitting analog
homes with digital converters and removing various analog filtering
equipment.

Business Solutions
Business Solutions’ additions were higher this quarter and year to date
compared to the same periods last year because of higher spending on
customer specific network expansions.

Media
Media’s additions were higher this quarter and year to date compared to
last year because of higher spending on digital and broadcast systems.

Non-GAAP Measures

Adjusted operating profit, free cash flow and the ‘adjusted’ amounts
listed below are reviewed regularly by management and our Board of
Directors in assessing our performance and in making decisions
regarding the ongoing operations of the business and the ability to
generate cash flows. They include:

  • adjusted operating profit or loss and related margin
  • adjusted net income
  • adjusted basic and diluted earnings per share
  • pre-tax and after-tax free cash flow
  • adjusted net debt.

These measures do not have standardized meanings prescribed by IFRS and
therefore may not be comparable to similar measures presented by other
issuers. These measures are also used by investors and lending
institutions as an indicator of our operating performance, our ability
to incur and service debt, and as measurement to value companies in the
telecommunications industry. We have reconciled these non-GAAP measures
to their most directly comparable measure calculated in accordance with
IFRS in the tables below.

Reconciliation of non-GAAP measures

Adjusted operating profit:
The term adjusted operating profit does not have any standardized
meaning under IFRS. Therefore, it is unlikely to be comparable to
similar measures presented by other companies. We define adjusted
operating profit as operating income before stock-based compensation
expense, restructuring, acquisition and other expenses, impairment of
assets and depreciation and amortization. We use adjusted operating
profit to evaluate the performance of our businesses and in making
decisions regarding the ongoing operations of the business and the
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. Adjusted operating
profit is also one of the components in the determination of short-term
incentive compensation for all management employees. The most
comparable IFRS financial measure is operating income. The following
table provides a reconciliation of operating income to adjusted
operating profit.

Three months ended September 30 Nine months ended September 30
(In millions of dollars) 2013 2012 2013 2012
Operating income $ 819 $ 818 $ 2,309 $ 2,190
Add (deduct):
Depreciation and amortization 477 437 1,390 1,366
Stock-based compensation expense 7 26 66 20
Restructuring, acquisition and other expenses 38 7 61 82
Adjusted operating profit $ 1,341 $ 1,288 $ 3,826 $ 3,658

Adjusted net income and adjusted basic and diluted earnings per share:
The terms adjusted net income and adjusted basic and diluted earnings
per share do not have any standardized meaning under IFRS. Therefore,
they are unlikely to be comparable to similar measures presented by
other companies. We define adjusted net income as net income before
stock-based compensation expense, restructuring, acquisition and other
expenses, losses on redemption of long-term debt, impairment of assets,
gain on spectrum distribution, gain on sale of TVtropolis, and the
related income tax impacts of the preceding items and the legislative
tax rate changes. We use adjusted net income and adjusted earnings per
share, among other measures, to assess the performance of our
businesses without the effects of the preceding 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. The most comparable IFRS
financial measures are net income and earnings per share. The following
table is a reconciliation of net income to adjusted net income on a
consolidated basis.

Three months ended September 30 Nine months ended September 30
(In millions of dollars) 2013 2012 2013 2012
Net income from continuing operations $ 464 $ 466 $ 1,349 $ 1,203
Add (deduct):
Stock-based compensation expense 7 26 66 20
Restructuring, acquisition and other expenses 38 7 61 82
Gain on sale of TVtropolis – – (47) –
Income tax impact of above items (8) (4) (25) (26)
Income tax adjustment, legislative tax change – – 8 54
Adjusted net income $ 501 $ 495 $ 1,412 $ 1,333


Free cash flow:
The terms pre-tax and after-tax free cash flow do not have any
standardized meanings under IFRS. Therefore, they are unlikely to be
comparable to similar measures presented by other companies. We define
pre-tax free cash flow as adjusted operating profit less property,
plant and equipment expenditures and interest expense on long-term debt
(net of capitalization). After-tax free cash flow is pre-tax free cash
flow less cash income taxes paid. We consider free cash flow to be an
important indicator of the financial strength and performance of our
business because it shows the amount of cash that is available to repay
debt and reinvest in our company. We believe that certain investors and
analysts use free cash flow to value a business and its underlying
assets. The most comparable IFRS financial measure is cash flows from
operating activities. The following table is a reconciliation of cash
flows from operating activities to free cash flow on a consolidated
basis.

Three months ended September 30 Nine months ended September 30
(In millions of dollars) 2013 2012 2013 2012
Cash provided by operating activities $ 1,052 $ 1,146 $ 2,918 $ 2,753
Add (deduct):
Property, plant and equipment expenditures (548) (528) (1,537) (1,435)
Interest on long-term debt expense, net of capitalization (173) (171) (524) (490)
Restructuring, acquisition and other expenses 38 7 61 82
Cash income taxes 114 28 326 123
Interest paid 268 223 615 555
Other adjustments (131) (116) (94) 145
Pre-tax free cash flow 620 589 1,765 1,733
Cash income taxes (114) (28) (326) (123)
After-tax free cash flow $ 506 $ 561 $ 1,439 $ 1,610


Adjusted net debt:
The term adjusted net debt does not have any standardized meaning under
IFRS. Therefore, it is unlikely to be comparable to similar measures
presented by other companies. We define adjusted net debt as long-term
debt before deferred transactions costs, plus Debt Derivatives,
short-term borrowings less cash and cash equivalents. We use adjusted
net debt to conduct valuation-related analysis and make capital
structure related decisions. We believe this is useful to investors and
analysts in enabling them to analyze our enterprise and equity value
and to assess various leverage ratios as performance measures. The most
comparable IFRS financial measure is long-term debt. The following
table provides a reconciliation of long-term debt to adjusted net debt.

(In millions of dollars) September 30, 2013 December 31, 2012
Long-term debt $ 10,469 $ 10,441
Current portion of long-term debt 1,133 348
11,602 10,789
Add (deduct):
Net derivative liabilities for Debt Derivatives 94 524
Deferred transaction costs 76 69
Short-term borrowings 650 –
Cash and cash equivalents (844) (213)
Adjusted net debt $ 11,578 $ 11,169
Rogers Communications Inc.
Unaudited Interim Condensed Consolidated Statements of Income
(In millions of Canadian dollars, except per share amounts)
Three months ended Nine months ended
September 30, September 30,
2013 2012 2013 2012
Operating revenue $ 3,224 $ 3,176 $ 9,463 $ 9,225
Operating expenses:
Operating costs 1,890 1,914 5,703 5,587
Restructuring, acquisition and other expenses 38 7 61 82
Depreciation and amortization 477 437 1,390 1,366
Operating income 819 818 2,309 2,190
Finance costs (180) (169) (546) (488)
Other income (expense) (3) (6) 67 9
Income before income taxes 636 643 1,830 1,711
Income tax expense 172 177 481 508
Net income for the period from
continuing operations 464 466 1,349 1,203
Loss from discontinued operations,
net of tax – – – (32)
Net income for the period $ 464 $ 466 $ 1,349 $ 1,171
Earnings per share – basic:
Earnings per share from continuing operations $ 0.90 $ 0.90 $ 2.62 $ 2.31
Loss per share from discontinued operations – – – (0.06)
Earnings per share – basic $ 0.90 $ 0.90 $ 2.62 $ 2.25
Earnings per share – diluted:
Earnings per share from
continuing operations $ 0.90 $ 0.90 $ 2.60 $ 2.30
Loss per share from
discontinued operations – – – (0.06)
Earnings per share – diluted $ 0.90 $ 0.90 $ 2.60 $ 2.24
Rogers Communications Inc.
Unaudited Interim Condensed Consolidated Statements of Financial
Position
(In millions of Canadian dollars)
September 30, December 31,
2013 2012
Assets
Current assets:
Cash and cash equivalents $ 844 $ 213
Accounts receivable 1,364 1,536
Other current assets 554 464
Current portion of derivative instruments 21 8
2,783 2,221
Property, plant and equipment 9,964 9,576
Goodwill 3,652 3,215
Intangible assets 3,187 2,951
Investments 1,460 1,484
Derivative instruments 83 42
Other long-term assets 339 98
Deferred tax assets 29 31
$ 21,497 $ 19,618
Liabilities and Shareholders’ Equity
Current liabilities:
Short-term borrowings $ 650 $ –
Accounts payable and accrued liabilities 1,930 2,135
Income tax payable 146 24
Current portion of provisions 6 7
Current portion of long-term debt 1,133 348
Current portion of derivative instruments 103 144
Unearned revenue 324 344
4,292 3,002
Provisions 34 31
Long-term debt 10,469 10,441
Derivative instruments 114 417
Other long-term liabilities 459 458
Deferred tax liabilities 1,624 1,501
16,992 15,850
Shareholders’ equity 4,505 3,768
$ 21,497 $ 19,618
Rogers Communications Inc.
Unaudited Interim Condensed Consolidated Statements of Cash Flows
(In millions of Canadian dollars)
Three months ended Nine months ended
September 30, September 30,
2013 2012 2013 2012
Cash provided by (used in):
Operating activities:
Net income for the period $ 464 $ 466 $ 1,349 $ 1,171
Adjustments to reconcile net income to net cash flows
provided by operating activities:
Depreciation and amortization 477 437 1,390 1,366
Gain on sale of TVtropolis – – (47) –
Program rights amortization 11 11 35 60
Finance costs 180 169 546 488
Income tax expense 172 177 481 498
Pension contributions, net of expense (8) (11) (25) (29)
Stock-based compensation expense 7 26 66 20
Other 3 9 (7) (3)
1,306 1,284 3,788 3,571
Change in non-cash operating working capital items 128 113 71 (140)
1,434 1,397 3,859 3,431
Interest paid (268) (223) (615) (555)
Income taxes paid (114) (28) (326) (123)
Cash provided by operating activities 1,052 1,146 2,918 2,753
Investing activities:
Additions to property, plant and equipment (“PP&E”) (548) (528) (1,537) (1,435)
Change in non-cash working capital items related to PP&E (20) 53 (155) (49)
Acquisitions and other strategic transactions (6) – (847) –
Proceeds on sale of TVtropolis – – 59 –
Investments – (540) – (540)
Additions to program rights (15) (46) (41) (67)
Other (7) (19) (32) (33)
Cash used in investing activities (596) (1,080) (2,553) (2,124)
Financing activities:
Issuance of long-term debt – – 1,030 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

(263) – (1,029) –
Proceeds on settlement of cross-currency
interest rate exchange agreements
and debt-related forward contracts 		– – 662 –
Transaction costs incurred – (5) (17) (14)
Repurchase of Class B Non-Voting shares

 – – (22) (350)
Proceeds on short-term borrowings – – 650 –
Dividends paid (224) (205) (652) (599)
Cash provided (used) by financing activities (487) (210) 266 (113)
Change in cash and cash equivalents (31) (144) 631 516
Cash and cash equivalents, beginning of period 875 603 213 (57)
Cash and cash equivalents, end of period $ 844 $ 459 $ 844 $ 459
The change in non-cash operating working capital items is as follows:
Accounts receivable $ 38 $ (84) $ 188 $ 116
Other current assets 54 131 (64) (80)
Accounts payable and accrued liabilities 56 99 (29) (150)
Unearned revenue (20) (33) (24) (26)
$ 128 $ 113 $ 71 $ (140)

About Forward-Looking Information

This 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 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 earnings release.

Our forward-looking information and statements include guidance and
forecasts 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.

We base our conclusions, forecasts and projections 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 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 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 the sections of our third quarter MD&A entitled “Update to
Risks and Uncertainties” and “Regulatory Developments”, and also fully
review the “Operating Environment” sections entitled “Risks and
Uncertainties Affecting Our Businesses” and “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.

About Rogers Communications Inc.

Rogers Communications is a leading diversified public 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. Information in or connected to our website is not part of or
incorporated into this earnings release.

Quarterly Investment Community Teleconference

The third quarter 2013 results teleconference will be held on:

A rebroadcast will be available at rogers.com/investors on the Events and Presentations page for at least two weeks following
the teleconference.

For More Information

You can find additional information relating to us, including our Annual
Information Form on our website (rogers.com/investors), on SEDAR (sedar.com) and on EDGAR (sec.gov), or by e-mailing your request to investor.relations@rci.rogers.com. Information on or connected to these and other website referenced
above is not part of this 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.

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