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Rogers Communications Inc. 1998 Annual Report reality check 1998 Annual Report www.rogers.com Printed in Canada ©1999 Profiles / Brands Key Statistics / 1998 Highlights 1998 Sources of Revenue Wireless Rogers Cantel Mobile Communications Inc. (“Wireless”) is Canada’s largest national ($ in millions) 1998 1997 wireless communications service provider offering subscribers a broad spectrum of paging & data Cellular Revenue $ 1,243 $ 1,241 $47 wireless communications products and services. It is currently the only company in (1) equipment Operating profit $ 395 $ 396 $151 Digital PCS Canada licensed to provide all of cellular, Digital PCS, paging and wireless data services Operating profit margin 31.8% 31.9% nationwide. With two million cellular, Digital PCS and paging subscribers, Wireless’ Paging Capital expenditures $ 301 $ 605 seamless cellular network covers 93% of the Canadian population with analog coverage cellular/pcs Cellular subscribers 1,737,600 1,552,100 $1,045 Data and over 81% of the population with digital coverage. Paging subscribers 256,400 253,600 Cell sites 1,584 1,462 Digital coverage to population 81% 81% ($ in millions) • Wireless ended the year with over 525,000 Digital PCS sub- scribers, an increase of 285,000 from the prior year-end. • Wire- less was the first Canadian company to offer prepaid cellular service with the launch in June 1998 of Pay As You Go. Wireless was also the first carrier in the world to offer universal access to its network through Pay As You Go service. • At year-end, Wireless had over 120,000 Pay As You Go subscribers. Cablesystems Rogers Cablesystems Limited (“Cablesystems”) is Canada’s largest cable television ($ in millions) 1998 1997 service provider with over 2.2 million customers in Toronto, Ottawa, Vancouver, and video stores Cable Television Revenue $ 1,027 $ 945 Southwestern Ontario. Cablesystems offers high-speed Internet access via cable modem $156 Operating profit(1) $ 399 $ 361 Video Stores over its fibre-rich network, which is ideally suited for two-way transmission of data Operating profit margin 38.8% 38.2% requiring significant bandwidth. Cablesystems also owns and operates 212 video stores High-speed Capital expenditures $ 310 $ 296 primarily in markets where it provides cable service. cable Internet Access Basic cable subscribers 2,237,200 2,243,700 television* Tier penetration 88.2% 88.8% $871 Rogers@Home subscribers 54,200 11,900 Video stores 212 195 ($ in millions) *Includes Interdivisional eliminations • Cablesystems increased penetration of its recently launched 16 channel MeTV tier to over 50% by year-end. • At December 31, 1998, 78% of Cablesystems cable television homes were passed by cable plant with two-way capability. • Cablesystems ended 1998 with 54,200 Rogers@Home high-speed Internet access customers, an increase of 42,300 from December 31, 1997. Media Rogers Media Inc. (“Media”) comprises 20 radio stations, a televised home shopping ($ in millions) 1998 1997 new media channel, a multicultural television station in Toronto, ownership interest in three cable the $2 Radio and Television Revenue $ 538 $ 453 shopping programming services, 16 consumer magazines, 45 business periodicals, directories and channel Operating profit(2) $66$ 54 Broadcasting $119 information products, and a new media division. Operating profit margin 12.2% 11.9% Consumer and Business Capital expenditures $ 10 $9 publishing Magazine Publishing $273 Publishing – advertising pages 22,700 19,400 Home Shopping Shopping Channel – items shipped 2,169,000 1,550,800 broadcasting $144 New Media • 40% revenue growth at The Shopping Channel and robust adver- tising markets led to an 18.8% increase in total revenue and ($ in millions) a 21.5% increase in operating profit. • Publishing added to its portfolio through several acquisitions and new product launches. • Agreement reached for the acquisition of three radio stations in Ottawa/Smith Falls, subject to CRTC approval. • Media continued to launch and develop consumer Internet properties, including the expansion of Quicken Financial Network®Canada and launch of Electric Library and Bid.com. (1)Operating income before provision for restructuring and asset writedowns (in the 1997 results), and depreciation and amorti- zation, and corporate management fees to Rogers. (2)Operating income before depreciation and amortization and corporate management fees to Rogers. Profiles / Brands Key Statistics / 1998 Highlights 1998 Sources of Revenue Wireless Rogers Cantel Mobile Communications Inc. (“Wireless”) is Canada’s largest national ($ in millions) 1998 1997 wireless communications service provider offering subscribers a broad spectrum of paging & data Cellular Revenue $ 1,243 $ 1,241 $47 wireless communications products and services. It is currently the only company in (1) equipment Operating profit $ 395 $ 396 $151 Digital PCS Canada licensed to provide all of cellular, Digital PCS, paging and wireless data services Operating profit margin 31.8% 31.9% nationwide. With two million cellular, Digital PCS and paging subscribers, Wireless’ Paging Capital expenditures $ 301 $ 605 seamless cellular network covers 93% of the Canadian population with analog coverage cellular/pcs Cellular subscribers 1,737,600 1,552,100 $1,045 Data and over 81% of the population with digital coverage. Paging subscribers 256,400 253,600 Cell sites 1,584 1,462 Digital coverage to population 81% 81% ($ in millions) • Wireless ended the year with over 525,000 Digital PCS sub- scribers, an increase of 285,000 from the prior year-end. • Wire- less was the first Canadian company to offer prepaid cellular service with the launch in June 1998 of Pay As You Go. Wireless was also the first carrier in the world to offer universal access to its network through Pay As You Go service. • At year-end, Wireless had over 120,000 Pay As You Go subscribers. Cablesystems Rogers Cablesystems Limited (“Cablesystems”) is Canada’s largest cable television ($ in millions) 1998 1997 service provider with over 2.2 million customers in Toronto, Ottawa, Vancouver, and video stores Cable Television Revenue $ 1,027 $ 945 Southwestern Ontario. Cablesystems offers high-speed Internet access via cable modem $156 Operating profit(1) $ 399 $ 361 Video Stores over its fibre-rich network, which is ideally suited for two-way transmission of data Operating profit margin 38.8% 38.2% requiring significant bandwidth. Cablesystems also owns and operates 212 video stores High-speed Capital expenditures $ 310 $ 296 primarily in markets where it provides cable service. cable Internet Access Basic cable subscribers 2,237,200 2,243,700 television* Tier penetration 88.2% 88.8% $871 Rogers@Home subscribers 54,200 11,900 Video stores 212 195 ($ in millions) *Includes Interdivisional eliminations • Cablesystems increased penetration of its recently launched 16 channel MeTV tier to over 50% by year-end. • At December 31, 1998, 78% of Cablesystems cable television homes were passed by cable plant with two-way capability. • Cablesystems ended 1998 with 54,200 Rogers@Home high-speed Internet access customers, an increase of 42,300 from December 31, 1997. Media Rogers Media Inc. (“Media”) comprises 20 radio stations, a televised home shopping ($ in millions) 1998 1997 new media channel, a multicultural television station in Toronto, ownership interest in three cable the $2 Radio and Television Revenue $ 538 $ 453 shopping programming services, 16 consumer magazines, 45 business periodicals, directories and channel Operating profit(2) $66$ 54 Broadcasting $119 information products, and a new media division. Operating profit margin 12.2% 11.9% Consumer and Business Capital expenditures $ 10 $9 publishing Magazine Publishing $273 Publishing – advertising pages 22,700 19,400 Home Shopping Shopping Channel – items shipped 2,169,000 1,550,800 broadcasting $144 New Media • 40% revenue growth at The Shopping Channel and robust adver- tising markets led to an 18.8% increase in total revenue and ($ in millions) a 21.5% increase in operating profit. • Publishing added to its portfolio through several acquisitions and new product launches. • Agreement reached for the acquisition of three radio stations in Ottawa/Smith Falls, subject to CRTC approval. • Media continued to launch and develop consumer Internet properties, including the expansion of Quicken Financial Network®Canada and launch of Electric Library and Bid.com. (1)Operating income before provision for restructuring and asset writedowns (in the 1997 results), and depreciation and amorti- zation, and corporate management fees to Rogers. (2)Operating income before depreciation and amortization and corporate management fees to Rogers. after years of investment, Rogers Communications is delivering the new reality of convergence between communication, entertainment, and information. we own nationwide digital and analog wireless networks of unmatched quality and potential. our cable television systems are two-way equipped for the broadband future. our media properties supply content to the pipeline. individually, these assets represent outstanding value. as they converge, they are worth even more. reality: as communication, entertainment, and information continue to converge, people will increasingly seek a single, convenient point-of-access at home. check: rogers cablesystems Advanced two-way cable networks have emerged as the single best conduit to the home in the age of convergence. Rogers is able to provide service to almost 2.8 million Canadian households with one of the world’s