Rogers Wireless News: 2011-10-23

Rogers Communications Inc.

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Rogers Reports Third Quarter 2011 Financial and Operating Results

Third Quarter Adjusted EPS up 7% to $0.89, $492 Million of Free Cash Flow Generated;

Wireless Subscribers up 161,000 Driven by Record Number of New Smartphone Customers, While Wireless Data Revenue Growth Strong at 28% and Wireless Network Margins Solid at 48%;

Cable Operations Revenue up 4% on Continued Subscriber Growth with Strong Margins of 44% Reflecting Ongoing Realization of Cost Efficiencies;

Media Revenue up 10% Reflecting Top Line Growth Broadly Across Portfolio with Adjusted Operating Profit Growing 38%

TORONTO, Oct. 26, 2011 /CNW/ - Rogers Communications Inc. today announced its consolidated financial and operating results for the three and nine months ended September 30, 2011, in accordance with International Financial Reporting Standards ("IFRS").

Financial highlights are as follows⁽¹⁾:


	Three months ended September 30,			Nine months ended September 30,
(In millions of dollars, except per share amounts)	2011	2010	% Chg	2011	2010	% Chg

Operating revenue Adjusted operating profit Adjusted net income Adjusted earnings per share Adjusted diluted earnings per share	$ 3,149 1,220 485 $ 0.89 $ 0.89	$ 3,111 1,218 479 $ 0.83 $ 0.83	1 - 1 7 7	$ 9,251 3,622 1,375 $ 2.51 $ 2.50	$ 9,004 3,571 1,340 $ 2.30 $ 2.29	3 1 3 9 9

(1)

This summary of our third quarter 2011 results should be read in conjunction with our third quarter 2011 MD&A, our third quarter 2011 Unaudited Interim Consolidated Financial Statements and Notes thereto, and our 2010 Annual Report all of which are incorporated by reference in this news release. The financial information presented herein has been prepared on the basis of International Financial Reporting Standards ("IFRS") for interim financial statements and is expressed in Canadian dollars.

"Rogers delivered a balanced set of financial and subscriber results in the third quarter, with continued growth in the face of an extremely competitive environment," said Nadir Mohamed, President and Chief Executive Officer of Rogers Communications Inc. "The strength of our asset mix, combined with a focused execution on our priorities - wireless data growth, customer retention and managing our cost structure - enabled Rogers to generate continued strong margins and free cash flow while increasing the amount of cash returned to shareholders by double digits year-over-year."

Highlights of the third quarter of 2011 include the following:

Generated consolidated quarterly revenue growth of 1%, with Wireless network revenue growth of 1%, Cable Operations revenue growth of 4%, and Media revenue growth of 10%, versus the same quarter last year. Adjusted operating profit increased by 38% at Media, but was offset by a 1% decline at Wireless primarily reflecting the upfront costs associated with a record number of new smartphone sales and ongoing declines in voice ARPU, while adjusted operating profit at Cable Operations was relatively unchanged from the prior year period.
Wireless data revenue growth accelerated to 28% and net postpaid subscriber additions totalled 74,000, helping drive wireless data revenue to now comprise 36% of Wireless network revenue. During the third quarter, Wireless activated and upgraded 609,000 additional smartphones, of which approximately 42% were for subscribers new to Wireless, compared to 529,000 in the prior year quarter. This resulted in subscribers with smartphones, who typically generate ARPU nearly twice that of voice only subscribers, representing 52% of the overall postpaid subscriber base as at September 30, 2011, up from 37% as at September 30, 2010.
Rogers turned on Canada's first Long Term Evolution ("LTE") wireless network services across four of the country's largest cities -- Toronto, Ottawa, Montreal and Vancouver -- giving more than 5.5 million Canadians access to the world's fastest mobile network technology. LTE is a next generation wireless technology that enables unparalleled connectivity, capable of speeds that are between three and four times faster than HSPA+.
Wireless launched a set of innovative new wireless roaming solutions to help Canadians easily manage their data use while travelling outside of Canada. Another first in Canada, Rogers launched Roaming Data Passes that provide real-time data usage alerts while roaming abroad, giving cost certainty and peace of mind.
Rogers Remote TV Manager was introduced enabling Cable's digital TV subscribers in Ontario the freedom and flexibility to search TV programming and manage PVR recordings online from anywhere with their computers, tablets and certain smartphones.
Cable launched its innovative new broadband-based Smart Home Monitoring offering, a first of its kind service in Canada that provides real-time home monitoring, control, viewing and alerts from computers or smartphones.
Media launched its CityNews Channel, a new 24-hour, interactive, local news channel in Toronto, as well as its reality TV competition series "Canada's Got Talent" and its new Sportsnet Magazine, Canada's first national biweekly sports magazine, leveraging the Rogers Sportsnet franchise and brand to connect readers with the premier source for sports features and opinion. Media also finalized an agreement to launch FX Canada.
Media relaunched the Setanta Sports service as Sportsnet World, providing Canadians with the world's top international sports events including professional soccer, rugby and cricket.
Generated $492 million of consolidated free cash flow in the quarter, defined as adjusted operating profit less PP&E expenditures, interest on long-term debt (net of capitalization) and cash income taxes, up 4% from third quarter of 2010 and reflecting steady levels of adjusted operating profit, an increased level of PP&E expenditures and lower cash taxes. Free cash flow per share increased by 10% over the same period reflecting accretion from the ongoing share buyback program which has decreased the base of outstanding shares.
Repurchased 11.9 million RCI Class B Non-Voting shares during the quarter under our $1.5 billion share buyback authorization for $440 million, and paid dividends on our common shares of $194 million, in total returning $634 million of cash to shareholders, a 21% increase from third quarter of 2010.

This earnings release, which is current as of October 25, 2011, is a summary of our third quarter 2011 results and should be read in conjunction with our third quarter 2011 MD&A, third quarter 2011 Unaudited Interim Consolidated Financial Statements and Notes thereto, our 2010 Annual MD&A and our 2010 Audited Annual Consolidated Financial Statements and Notes thereto and other recent securities filings available on SEDAR at sedar.com or at rogers.com/investors.

The financial information presented herein has been prepared on the basis of International Financial Reporting Standards ("IFRS") for interim financial statements and is expressed in Canadian dollars unless otherwise stated. Comparative amounts for 2010 included in this earnings release have been conformed to reflect our adoption of IFRS, with effect from January 1, 2010. Periods prior to January 1, 2010 have not been conformed and are prepared in accordance with Canadian GAAP.

Concurrent with the impact of the transition to IFRS, we made certain changes to our reportable segments. Commencing January 1, 2011, the results of the former Rogers Retail segment are reported as follows: the results of the Video retailing portion are now presented as a separate operating sub-segment under the Cable segment, and the portions related to retail distribution of wireless and cable products and services are now included in the results of operations of Wireless and Cable Operations, respectively. In addition, certain intercompany transactions between the Rogers Business Solutions ("RBS") segment and other operating segments, which were previously recorded as revenue in RBS and operating expenses in the other operating segments, are now recorded as cost recoveries in RBS beginning January 1, 2011. While there is no change to the consolidated results or to the adjusted operating profit of RBS, as a result of this second change, the reported revenue of RBS is lower as intercompany sales are no longer included. Comparative figures for 2010 have been reclassified to conform to the current year's presentation of both changes discussed above.

As this earnings release includes forward-looking statements and assumptions, readers should carefully review the sections of this earnings release entitled "Caution Regarding Forward-Looking Statements, Risks and Assumptions".

In this earnings release, the terms "we", "us", "our", "Rogers" and "the Company" refer to Rogers Communications Inc. and our subsidiaries, "Wireless", "Cable" and "Media".

SUMMARIZED CONSOLIDATED FINANCIAL RESULTS


			Three months ended September 30,			Nine months ended September 30,
(In millions of dollars, except per share amounts)			2011	2010	% Chg	2011	2010	% Chg

Operating revenue
	Wireless Cable		$ 1,832	$ 1,816	1	$ 5,312	$ 5,185	2
		Cable Operations RBS Video	826 96 18	798 115 33	4 (17) (45)	2,471 312 60	2,379 341 111	4 (9) (46)
			940	946	(1)	2,843	2,831	-
	Media Corporate items and eliminations		407 (30)	369 (20)	10 50	1,183 (87)	1,045 (57)	13 53
Total operating revenue			3,149	3,111	1	9,251	9,004	3

Adjusted operating profit (loss)
	Wireless Cable		815	821	(1)	2,366	2,469	(4)
		Cable Operations RBS Video	367 19 (7)	367 11 (5)	- 73 40	1,146 66 (16)	1,047 28 (13)	9 136 23
			379	373	2	1,196	1,062	13
	Media Corporate items and eliminations		55 (29)	40 (16)	38 81	136 (76)	107 (67)	27 13
Adjusted operating profit Stock-based compensation (expense) recovery Settlement of pension obligations Integration, restructuring and acquisition expenses Other items, net			1,220 19 - (17) -	1,218 (41) - (8) (4)	- n/m n/m 113 n/m	3,622 (30) (11) (47) -	3,571 (76) - (18) (19)	1 (61) n/m 161 n/m
Operating profit Other income and expense, net			1,222 731	1,165 785	5 (7)	3,534 2,298	3,458 2,258	2 2
Net income			$ 491	$ 380	29	$ 1,236	$ 1,200	3

Basic earnings per share Diluted earnings per share			$ 0.91 $ 0.87	$ 0.66 $ 0.66	38 32	$ 2.26 $ 2.24	$ 2.06 $ 2.05	10 9

As adjusted:
	Net income Basic earnings per share Diluted earnings per share		$ 485 $ 0.89 $ 0.89	$ 479 $ 0.83 $ 0.83	1 7 7	$ 1,375 $ 2.51 $ 2.50	$ 1,340 $ 2.30 $ 2.29	3 9 9

Additions to PP&E
	Wireless Cable		$ 329	$ 186	77	$ 845	$ 591	43
		Cable Operations RBS Video	190 13 -	177 11 1	7 18 n/m	517 42 -	454 25 5	14 68 n/m
			203	189	7	559	484	15
	Media Corporate		10 17	10 54	- (69)	30 40	23 145	30 (72)
Total additions to PP&E			$ 559	$ 439	27	$ 1,474	$ 1,243	19

SEGMENT REVIEW

WIRELESS

Summarized Wireless Financial Results


		Three months ended September 30,			Nine months ended September 30,
(In millions of dollars, except margin)		2011	2010	% Chg	2011	2010	% Chg

Operating revenue
	Network revenue Equipment sales	$1,707 125	$1,692 124	1 1	$4,960 352	$4,885 300	2 17
Total operating revenue		1,832	1,816	1	5,312	5,185	2

Operating expenses before the undernoted
	Cost of equipment sales Other operating expenses	319 698	341 654	(6) 7	960 1,986	821 1,895	17 5
		1,017	995	2	2,946	2,716	8
Adjusted operating profit Stock-based compensation (expense) recovery Settlement of pension obligations Integration, restructuring and acquisition expenses Other items, net		815 3 - (5) -	821 (7) - (3) -	(1) n/m n/m 67 n/m	2,366 (5) (2) (13) -	2,469 (14) - (4) (10)	(4) (64) n/m n/m n/m
Operating profit		$ 813	$ 811	-	$2,346	$2,441	(4)

Adjusted operating profit margin as % of network revenue		47.7%	48.5%		47.7%	50.5%

Additions to PP&E		$ 329	$ 186	77	$ 845	$ 591	43

Data revenue included in network revenue		$ 611	$ 476	28	$1,725	$1,327	30

Summarized Wireless Subscriber Results


(Subscriber statistics in thousands,		Three months ended September 30,			Nine months ended September 30,
except ARPU, churn and usage)		2011	2010	Chg	2011	2010	Chg

Postpaid
	Gross additions Net additions Total postpaid retail subscribers Monthly churn Average monthly revenue per user ("ARPU")	380 74 7,532 1.36% $72.08	387 125 7,293 1.21% $74.47	(7) (51) 239 0.15% $(2.39)	1,072 227 7,532 1.27% $70.78	986 270 7,293 1.12% $73.03	86 (43) 239 0.15% $(2.25)

Prepaid
	Gross additions Net additions Total prepaid retail subscribers Monthly churn ARPU	258 87 1,756 3.37% $16.72	217 86 1,588 2.84% $17.10	41 1 168 0.53% $(0.38)	654 104 1,756 3.68% $15.71	510 73 1,588 3.23% $16.10	144 31 168 0.45% $(0.39)

Total
	Gross additions Net additions Total postpaid and prepaid retail subscribers Monthly churn	638 161 9,288 1.73%	604 211 8,881 1.50%	34 (50) 407 0.23%	1,726 331 9,288 1.71%	1,496 343 8,881 1.49%	230 (12) 407 0.22%

Blended ARPU		$61.79	$64.38	$(2.59)	$60.64	$63.04	$(2.40)
Blended average monthly minutes of usage		465	465	-	464	478	(14)

Wireless Subscribers and Network Revenue

The combination of postpaid and prepaid gross subscriber additions in the three months ended September 30, 2011, reflects the strongest quarter of wireless subscriber gross additions ever on a combined basis. The year-over-year decrease in subscriber net additions for the quarter primarily reflects an increase in the level of postpaid churn associated with heightened competitive intensity. Included in postpaid gross additions are the highest number of new smartphone subscribers Wireless has ever added in a single quarter. The increase in prepaid subscriber gross additions primarily reflects sales activity from Wireless' launch of its urban zone-based unlimited voice and text service, chatr, as well as prepaid wireless data plans for tablets and USB devices.

The increase in network revenue for the three and nine months ended September 30, 2011, compared to the corresponding periods of 2010, was driven predominantly by the continued growth of Wireless' subscriber base and the increased adoption and usage of wireless data services, partially offset by a decrease in voice ARPU as discussed below.

For the three and nine months ended September 30, 2011, wireless data revenue increased by approximately 28% and 30% from the corresponding periods of 2010, to $611 million and $1,725 million, respectively. This growth in wireless data revenue reflects the continued penetration and growing usage of smartphone and wireless laptop and tablet devices which are driving increased usage of e-mail, wireless Internet access, text messaging and other wireless data services. For the three and nine months ended September 30, 2011, data revenue represented approximately 36% and 35%, respectively, of total network revenue, compared to approximately 28% and 27% in the corresponding periods of 2010.

For the three months ended September 30, 2011, Wireless activated and upgraded approximately 609,000 smartphones, compared to approximately 529,000 smartphones in the third quarter of 2010. This is the second highest number of smartphone activations and upgrades that Wireless has ever reported in a quarter. These smartphones were predominantly iPhone, BlackBerry and Android devices, of which approximately 42% were for subscribers new to Wireless, during the three months ended September 30, 2011. This resulted in subscribers with smartphones representing 52% of the overall postpaid subscriber base as at September 30, 2011, compared to 37% as at September 30, 2010. These subscribers generally commit to new multi-year-term contracts, and typically generate ARPU nearly twice that of voice only subscribers.

Year-over-year postpaid ARPU decreased by 3%, which reflects declines in most categories of wireless voice revenues, offset by higher wireless data and feature revenues. The 14% decrease in the wireless voice component of postpaid ARPU is primarily due to the general level of competitive intensity in the wireless voice services market, which was largely offset by a 24% increase in wireless data ARPU. During the quarter, Wireless heightened its focus on initiatives aimed at slowing the decline of voice ARPU which has accelerated in recent quarters.

Wireless Equipment Sales

The year-over-year increase for the three and nine months ended September 30, 2011 in revenue from equipment sales, including activation fees and net of equipment subsidies, versus the corresponding periods of 2010, reflects the increase in the number of smartphone activations.

Wireless Operating Expenses


		Three months ended September 30,			Nine months ended September 30,
(In millions of dollars)		2011	2010	% Chg	2011	2010	% Chg

Operating expenses
	Cost of equipment sales Other operating expenses	$ 319 698	$ 341 654	(6) 7	$ 960 1,986	$ 821 1,895	17 5
Operating expenses before the undernoted Stock-based compensation expense (recovery) Settlement of pension obligations Integration, restructuring and acquisition expenses Other items, net		1,017 (3) - 5 -	995 7 - 3 -	2 n/m n/m 67 n/m	2,946 5 2 13 -	2,716 14 - 4 10	8 (64) n/m n/m n/m
Total operating expenses		$ 1,019	$ 1,005	1	$ 2,966	$ 2,744	8

The decrease in cost of equipment sales for the three months ended September 30, 2011, compared to the corresponding period of 2010, was the result of a reduction in the number of hardware upgrades by existing customers and a change in the mix of iPhones for upgrading subscribers. Also attributing to the decline in cost of equipment sales was a modest reduction in the net cost per upgrade unit as a result of changes to device upgrade policies earlier in 2011. The increase in cost of equipment sales for the nine months ended September 30, 2011 reflects a larger number of smartphone device upgrades versus the corresponding period of 2010.

Total retention spending, including subsidies on handset upgrades, was $173 million and $548 million in the three and nine months ended September 30, 2011, respectively, compared to $221 million and $532 million in the corresponding periods of 2010. The changes for the three and nine month periods primarily reflect the smartphone volume and cost changes discussed in the preceding paragraph.

The year-over-year increase in other operating expenses for the three months ended September 30, 2011, excluding retention spending discussed above was driven by higher network and service costs associated with a larger subscriber base as well as higher sales costs combined with the impact of certain one-time adjustments which reduced operating expenses in the third quarter of 2010. These increases were partially offset by savings resulting from cost reduction initiatives and scale efficiencies across various functions.

Wireless Adjusted Operating Profit

The 1% year-over-year decrease in adjusted operating profit and the 47.7% adjusted operating profit margin on network revenue (which excludes equipment sales revenue) for the three months ended September 30, 2011 primarily reflect the increase in the total operating expenses discussed above, partially offset by the increase in network revenue. Excluding the one-time adjustments in the third quarter of 2010, adjusted operating profit would have increased by 1%.

Wireless Additions to PP&E

Wireless additions to PP&E are classified into the following categories:


		Three months ended September 30,			Nine months ended September 30,
(In millions of dollars)		2011	2010	% Chg	2011	2010	% Chg

Additions to PP&E
	Capacity Quality Network - other Information technology and other	$ 194 64 10 61	$ 76 65 10 35	155 (2) - 74	$ 477 157 37 174	$ 300 181 23 87	59 (13) 61 100
Total additions to PP&E		$ 329	$ 186	77	$ 845	$ 591	43

Wireless PP&E additions for the three months ended September 30, 2011 reflects spending on network capacity, such as radio channel additions, network core improvements and network enhancing features, including the continued deployment of our HSPA+ network and the initial construction and launch of our LTE network. Quality-related additions to PP&E are associated with upgrades to the network to enable higher throughput speeds in addition to improved network access associated activities, such as site build programs and network sectorization work. Moreover, Quality includes test and monitoring equipment and operating support system activities. Investments in Network - other are associated with network reliability and renewal initiatives, infrastructure upgrades and new product platforms. Information technology and other wireless specific system initiatives include billing and back-office system upgrades, and other facilities and equipment spending.

The increase in Wireless PP&E additions for the three and nine months ending September 30, 2011 is largely due to investments to build out the LTE network in Canada's top four markets with the services now available in Ottawa, Toronto, Montreal, and Vancouver and spending on Information technology investments on our customer billing systems and platforms for new services.

CABLE

Summarized Cable Financial Results


		Three months ended September 30,			Nine months ended September 30,
(In millions of dollars, except margin)		2011	2010	% Chg	2011	2010	% Chg

Operating revenue
	Cable Operations RBS Video	$ 826 96 18	$ 798 115 33	4 (17) (45)	$ 2,471 312 60	$ 2,379 341 111	4 (9) (46)
Total operating revenue		940	946	(1)	2,843	2,831	-

Adjusted operating profit (loss) before the undernoted
	Cable Operations RBS Video	367 19 (7)	367 11 (5)	- 73 40	1,146 66 (16)	1,047 28 (13)	9 136 23
Adjusted operating profit Stock-based compensation (expense) recovery Settlement of pension obligations Integration, restructuring and acquisition expenses Other items, net		379 2 - (5) -	373 (6) - (5) -	2 n/m n/m - n/m	1,196 (4) (5) (23) -	1,062 (12) - (13) (5)	13 (67) n/m 77 n/m
Operating profit		$ 376	$ 362	4	$ 1,164	$ 1,032	13

Adjusted operating profit (loss) margin
	Cable Operations RBS Video	44.4% 19.8% (38.9%)	46.0% 9.6% (15.2%)		46.4% 21.2% (26.7%)	44.0% 8.2% (11.7%)

Additions to PP&E
	Cable Operations RBS Video	$ 190 13 -	$ 177 11 1	7 18 n/m	$ 517 42 -	$ 454 25 5	14 68 n/m
Total additions to PP&E		$ 203	$ 189	7	$ 559	$ 484	15

The following segment discussions provide a detailed discussion of the Cable operating results.

CABLE OPERATIONS

Summarized Financial Results


		Three months ended September 30,			Nine months ended September 30,
(In millions of dollars, except margin)		2011	2010	% Chg	2011	2010	% Chg

Operating revenue
	Cable Television Internet Home Phone	$ 475 232 119	$ 458 213 127	4 9 (6)	$ 1,423 688 360	$ 1,365 631 383	4 9 (6)
Total Cable Operations operating revenue		826	798	4	2,471	2,379	4

Operating expenses before the undernoted
	Cost of equipment sales Other operating expenses	7 452	8 423	(13) 7	19 1,306	29 1,303	(34) -
		459	431	6	1,325	1,332	(1)
Adjusted operating profit Stock-based compensation (expense) recovery Settlement of pension obligations Integration, restructuring and acquisition expenses Other items, net		367 2 - (3) -	367 (6) - (2) -	- n/m n/m 50 n/m	1,146 (4) (4) (6) -	1,047 (12) - (3) (7)	9 (67) n/m 100 n/m
Operating profit		$ 366	$ 359	2	$ 1,132	$ 1,025	10

Adjusted operating profit margin		44.4%	46.0%		46.4%	44.0%

Summarized Subscriber Results


			Three months ended September 30,			Nine months ended September 30,
(Subscriber statistics in thousands)			2011	2010	Chg	2011	2010	Chg

Cable homes passed			3,740	3,688	52	3,740	3,688	52

Television
	Net additions (losses) Total television subscribers		9 2,303	7 2,309	2 (6)	(8) 2,303	8 2,309	(16) (6)

	Digital cable
		Households, net additions Total digital cable households	22 1,767	16 1,719	6 48	29 1,767	53 1,719	(24) 48

Cable high-speed Internet
	Net additions Total cable high-speed Internet subscribers		39 1,768	27 1,673	12 95	58 1,768	51 1,673	7 95

Cable telephony lines
	Net additions and migrations Total cable telephony lines		16 1,044	20 995	(4) 49	37 1,044	58 995	(21) 49

Total cable service units
	Net additions Total cable service units		64 5,115	54 4,977	10 138	87 5,115	117 4,977	(30) 138

Circuit-switched lines
	Net losses and migrations to cable telephony platform Total circuit-switched lines		(1) 1	(12) 83	11 (82)	(12) 1	(39) 83	27 (82)

Cable Television Revenue

The increase in Cable Television revenue for the three and nine months ended September 30, 2011, compared to the corresponding periods of 2010, reflects the timing of pricing changes made in March 2011 and August 2010, together with continued increase in penetration of our digital cable product offerings and greater usage of on-demand and pay-per-view services.

The digital cable subscriber base grew by 3% and represented 77% of the television subscriber base as at September 30, 2011, compared to 74% as at September 30, 2010. Increased demand from subscribers for the larger selection of digital content, video on-demand, HDTV and personal video recorder ("PVR") equipment continues to contribute to the growth in the digital subscriber base and Cable Television revenue.

Cable Internet Revenue

The year-over-year increase in Internet revenue for the three and nine months ended September 30, 2011 reflects the increase in the Internet subscriber base, combined with the timing of Internet service pricing changes made in July 2010 and in March 2011. Also impacting the increase is the timing and mix of promotional programs and a general movement by subscribers towards higher end tiers and an increase in revenue from additional usage.

With the high-speed Internet base at approximately 1.8 million subscribers, Internet penetration is approximately 47% of the homes passed by our cable networks and 77% of our television subscriber base, as at September 30, 2011.

Home Phone Revenue

The year-over-year decrease in Home Phone revenue for the three and nine months ended September 30, 2011, reflects the declines in revenue associated with the legacy circuit-switched telephony base that Cable is in the final stages of divesting, which was partially offset by the increase in the cable telephony customer base combined with price changes in March 2011.

Excluding the impact of the declining circuit-switched telephony business that Cable is in the process of divesting as described below, the year-over-year revenue growth for Home Phone and for Cable Operations overall for the three months ended September 30, 2011 would have been 4% and 5%, respectively.

Cable telephony lines in service grew 5% from September 30, 2010 to September 30, 2011. At September 30, 2011, cable telephony lines represented 28% of the homes passed by our cable networks and 45% of television subscribers. The lower net additions of cable telephony lines in the three and nine months ended September 30, 2011, versus the corresponding periods of 2010, are the result of lower sales due to a combination of product maturation and increased competition.

Cable continues to focus principally on growing its on-net cable telephony line base. As a result, in Q3 2010, it announced that it was divesting the assets of its off-net circuit-switched telephony business where services cannot be provided over Rogers' own cable network facilities. Under this arrangement, most of its co-location sites and related equipment were sold. In addition, the sale involved residential circuit-switched lines, with the customers served by these facilities being migrated to a third-party reseller starting late in the third quarter of 2010 and continuing over the first half of 2011. This is the principal driver of the decline of 82,000 in the legacy circuit-switched telephony base from September 30, 2010 to the current level of approximately 1,000. During the three and nine months ended September 30, 2011, approximately 1,000 and 33,000 circuit-switched lines, were migrated to third-party resellers, with the exception of 3,000 which were migrated to RBS in the first quarter of 2011. For the three and nine months ended September 30, 2011, the revenue reported by Cable Operations associated with the residential circuit-switched telephony business being divested totalled approximately $3 million and $13 million, respectively, whereas the circuit-switched telephony revenues in the three and nine months ended September 30, 2010 totalled approximately $15 million and $50 million, respectively.

Cable Operations Operating Expenses

The increase in Cable Operations' operating expenses for the three months ended September 30, 2011, compared to the corresponding periods of 2010, was due to higher network and service costs associated with a larger subscriber base, programming, and sales and marketing activities combined with the impact of certain one-time adjustments which reduced operating expenses in the third quarter of 2010. These increases were offset by cost reduction and efficiency initiatives across various functions, with activity driven costs generally benefiting from the lower number of new customer additions and customer churn versus the same period in the prior year. Cable Operations continues to focus on implementing a program of permanent cost reduction and efficiency improvement initiatives to control the overall growth in operating expenses.

Cable Operations Adjusted Operating Profit

Cable Operations' adjusted operating profit margins were 44.4% and 46.4% for the three and nine months ended September 30, 2011, respectively, compared to 46.0% and 44.0% in the corresponding periods of 2010. Excluding the one-time adjustments in the third quarter of 2010, adjusted operating profit would have increased by 3% and the adjusted operating profit margin would have been 44.6% for the three months ended September 30, 2010.

ROGERS BUSINESS SOLUTIONS

Summarized Financial Results


	Three months ended September 30,			Nine months ended September 30,
(In millions of dollars, except margin)	2011	2010	% Chg	2011	2010	% Chg

Operating revenue	$ 96	$ 115	(17)	$ 312	$ 341	(9)

Operating expenses before the undernoted	77	104	(26)	246	313	(21)
Adjusted operating profit Settlement of pension obligations Integration, restructuring and acquisition expenses	19 - -	11 - (1)	73 n/m n/m	66 (1) (6)	28 - (4)	136 n/m 50
Operating profit	$ 19	$ 10	90	$ 59	$ 24	146

Adjusted operating profit margin	19.8%	9.6%		21.2%	8.2%

Summarized Subscriber Results


		Three months ended September 30,			Nine months ended September 30,
(Subscriber statistics in thousands)		2011	2010	Chg	2011	2010	Chg

Local line equivalents
	Total local line equivalents	129	153	(24)	129	153	(24)

Broadband data circuits
	Total broadband data circuits	32	36	(4)	32	36	(4)

RBS Revenue

The decrease in RBS revenue for the three and nine months ended September 30, 2011, primarily reflects the planned decline in certain categories of lower margin legacy business, partially offset by the growth in next generation IP and other on-net services. RBS' focus is primarily on IP-based services and increasingly on leveraging higher margin on-net and near-net revenue opportunities utilizing both the acquired Atria and Blink networks and Cable's existing network facilities to expand offerings to the medium-sized enterprise, public sector and carrier markets. The lower margin legacy business, which includes long-distance, local and certain legacy data services, continues to decline and is down 37% for the quarter and 29% year to date. In comparison, the higher margin next generation business is up 5% and 7%, respectively. For the three and nine months ended September 30, 2011, the acquisition of Atria contributed revenue of $18 million and $55 million, respectively.

RBS Operating Expenses

Operating expenses decreased for the three and nine months ended September 30, 2011, compared to the corresponding periods of 2010 and reflects the planned decrease in legacy services related costs due to lower volumes and subscriber levels, permanent cost reductions resulting from a 2010 restructuring of the employee base, lower sales within certain customer segments, and operating efficiencies stemming from the integration of Blink and Atria.

RBS Adjusted Operating Profit

The year-over-year growth in adjusted operating profit reflects the acquisition of the higher margin Atria and Blink on-net data businesses and the RBS focus on growing its on-net next generation data revenue. This strategic shift has more than offset the declines in the lower margin legacy voice and data services. Cost reductions and efficiency initiatives across various functions have also contributed to higher operating profit and operating profit margins in the quarter. For the three and nine months ended September 30, 2011, the acquisition of Atria contributed adjusted operating profit of $11 million and $33 million, respectively, contributing to the growth of the next generation services market, including data and Internet.

VIDEO

Summarized Financial Results


	Three months ended September 30,			Nine months ended September 30,
(In millions of dollars, except margin)	2011	2010	% Chg	2011	2010	% Chg

Operating revenue	$ 18	$ 33	(45)	$ 60	$ 111	(46)

Operating expenses before the undernoted	25	38	(34)	76	124	(39)
Adjusted operating loss Integration, restructuring and acquisition expenses Other items, net	(7) (2) -	(5) (2) -	40 - n/m	(16) (11) -	(13) (6) 2	23 83 n/m
Operating loss	$ (9)	$ (7)	29	$ (27)	$ (17)	59

Adjusted operating loss margin	(38.9%)	(15.2%)		(26.7%)	(11.7%)

Video Revenue

The results of the Video segment include our video and game sale and rental business which has and continues to be restructured and downsized coinciding with the declining market opportunity. The decrease in Video revenue for the three and nine months ended September 30, 2011, compared to the corresponding periods of 2010, was the result of a continued decline in video rental and sales activity and the reduction of nearly 20% in the number of store locations since the start of 2010.

Video Adjusted Operating Loss

The adjusted operating loss at Video increased for the three months and nine months ended September 30, 2011, compared to the corresponding periods of 2010, reflecting the trends in revenue and operating expenses above.

Cable Additions to PP&E

Cable additions to PP&E are classified into the following categories:


		Three months ended September 30,			Nine months ended September 30,
(In millions of dollars)		2011	2010	% Chg	2011	2010	% Chg

Additions to PP&E
	Customer premise equipment Scalable infrastructure Line extensions Upgrades and rebuild Support capital	$ 74 56 12 4 44	$ 87 47 10 6 27	(15) 19 20 (33) 63	$ 155 181 32 8 141	$ 199 134 30 14 77	(22) 35 7 (43) 83
Total Cable Operations RBS Video		190 13 -	177 11 1	7 18 n/m	517 42 -	454 25 5	14 68 n/m
Total additions to PP&E		$ 203	$ 189	7	$ 559	$ 484	15

The Cable Operations segment categorizes its PP&E expenditures according to a standardized set of reporting categories that were developed and agreed to by the U.S. cable television industry and that facilitate comparisons of additions to PP&E between different cable companies. Under these industry definitions, Cable Operations additions to PP&E are classified into the following five categories:

Customer premise equipment ("CPE"), which includes the equipment for digital set-top terminals, Internet modems and associated installation costs;
Scalable infrastructure, which includes non-CPE costs to meet business growth and to provide service enhancements;
Line extensions, which includes network costs to enter new service areas;
Upgrades and rebuild, which includes the costs to modify or replace existing coaxial cable, fibre-optic equipment and network electronics; and
Support capital, which includes the costs associated with the purchase, replacement or enhancement of non-network assets.

Additions to Cable PP&E include continued investments in the cable network to enhance the customer experience through increased speed and performance of our Internet service and capacity enhancements to our digital network to allow for incremental HD and On-Demand services to be added.

The increase in Cable Operations PP&E for the three and nine months ended September 30, 2011, compared to the corresponding periods of 2010, resulted primarily from higher Scalable infrastructure and Support capital expenditures due to projects associated with increasing capacity on our Video platform and quality related investments on our Voice platform and timing of spend on project to de-risk our infrastructures. Support capital investments that contributed to the increase relate to customer billing systems and platforms for new services. Lower investments in Set Top Boxes due to lower subscriber activity and lower unit pricing contributed to the decrease in Customer premise equipment for the three and nine months ended September 30, 2011.

The increases in RBS PP&E additions for the three and nine months ended September 30, 2011 reflect the timing of expenditures on customer networks and support capital.

MEDIA

Summarized Media Financial Results


	Three months ended September 30,			Nine months ended September 30,
(In millions of dollars, except margin)	2011	2010	% Chg	2011	2010	% Chg

Operating revenue	$ 407	$ 369	10	$ 1,183	$ 1,045	13

Operating expenses before the undernoted	352	329	7	1,047	938	12
Adjusted operating profit Stock-based compensation (expense) recovery Settlement of pension obligations Integration, restructuring and acquisition expenses Other items, net	55 2 - (7) -	40 (7) - - (4)	38 n/m n/m n/m n/m	136 (5) (3) (11) -	107 (13) - (1) (4)	27 (62) n/m n/m n/m
Operating profit	$ 50	$ 29	72	$ 117	$ 89	31

Adjusted operating profit margin	13.5%	10.8%		11.5%	10.2%

Additions to PP&E	$ 10	$ 10	-	$ 30	$ 23	30

Media Revenue

The increases in Media's revenue for the three and nine months ended September 30, 2011, respectively, compared to the corresponding periods of 2010, were mainly the result of increased advertising sales and new subscriber fees generated from Sportsnet ONE. For the three and nine months ended September 30, 2011, Radio, Sportsnet, Television, Sports Entertainment, and Digital Media all contributed to the growth in revenue and was partially offset by a decline at Publishing, primarily due to the disposition of a portion of the business publishing portfolio, and relatively flat year-over-year sales at The Shopping Channel. The slowing in the rate of Media's revenue growth from the 13% in the second quarter of 2011 to the 10% in the current quarter in part reflects a slow down in advertising market activity stemming from apprehension associated with negative global economic news.

Media Operating Expenses

Media's operating expenses increased for the three and nine months ended September 30, 2011, compared to the corresponding periods of 2010, primarily due to additional costs related to the acquisition of BV Media and planned Television programming.

Media Adjusted Operating Profit

The increase in Media's adjusted operating profit for the three and nine months ended September 30, 2011, compared to the corresponding periods of 2010, primarily reflects the revenue and expense changes discussed above.

Media Additions to PP&E

Media's PP&E additions during the nine months ended September 30, 2011 increased from the corresponding periods in 2010 due primarily to Television broadcast equipment additions related to the CRTC mandated digital transition and planned infrastructure upgrades.

2011 FINANCIAL AND OPERATING GUIDANCE

We have no specific revisions to the 2011 annual guidance ranges which we provided on a consolidated basis on February 16, 2011. See the section entitled "Caution Regarding Forward-Looking Statements, Risks and Assumptions" below.

Rogers Communications Inc.
Unaudited Interim Consolidated Statements of Income
(In millions of Canadian dollars, except per share amounts)


			Three months ended				Nine months ended
			September 30,				September 30,
			2011		2010		2011		2010

Operating revenue		$	3,149	$	3,111	$	9,251	$	9,004

Operating expenses:
	Operating costs		1,910		1,938		5,670		5,528
	Integration, restructuring and acquisition costs		17		8		47		18
	Depreciation and amortization		427		399		1,289		1,210

Operating income			795		766		2,245		2,248

Finance costs			(146)		(253)		(580)		(590)
Other income, net			-		2		7		4
Share of the income of associates and joint ventures accounted for using the equity method, net of tax			1		-		4		7

Income before income taxes			650		515		1,676		1,669

Income tax expense:
	Current		96		2		375		221
	Deferred		63		133		65		248
			159		135		440		469
Net income for the period		$	491	$	380	$	1,236	$	1,200

Earnings per share:
	Basic	$	0.91	$	0.66	$	2.26	$	2.06
	Diluted		0.87		0.66		2.24		2.05

Rogers Communications Inc.
Unaudited Interim Consolidated Statements of Financial Position
(In millions of Canadian dollars)


		September 30,	December 31,
		2011	2010

Assets

Current assets:
	Accounts receivable	$ 1,478	$ 1,498
	Other current assets	444	364
	Current portion of derivative instruments	26	1
		1,948	1,863

Property, plant and equipment		8,884	8,437
Goodwill		3,282	3,108
Intangible assets		2,682	2,514
Investments		994	878
Derivative instruments		180	6
Other long-term assets		196	175
Deferred tax assets		30	52
		$ 18,196	$ 17,033

Liabilities and Shareholders' Equity

Current liabilities:
	Bank advances	$ 24	$ 45
	Accounts payable and accrued liabilities	1,792	2,133
	Income tax payable	739	376
	Current portion of provisions	19	21
	Current portion of derivative instruments	40	67
	Unearned revenue	330	329
		2,944	2,971

Provisions		62	62
Long-term debt		10,034	8,654
Derivative instruments		447	840
Other long-term liabilities		214	229
Deferred tax liabilities		660	517
		14,361	13,273

Shareholders' equity		3,835	3,760
		$ 18,196	$ 17,033

Rogers Communications Inc.
Unaudited Interim Consolidated Statements of Cash Flows
(In millions of Canadian dollars)


				Three months ended				Nine months ended
				September 30,				September 30,
				2011		2010		2011		2010

Cash provided by (used in):

Operating activities:
	Net income		$	491	$	380	$	1,236	$	1,200
	Adjustments to reconcile
	net income to net cash flows
	from operating activities:
		Depreciation and amortization		427		399		1,289		1,210
		Program rights and Video
		rental amortization		52		52		152		157
		Finance costs		146		253		580		590
		Current income tax expense		96		2		375		221
		Deferred taxes		63		133		65		248
		Pension contributions,
		net of expense		(6)		(5)		(38)		(25)
		Settlement of pension obligations		-		-		11		-
		Stock-based compensation expense
		(recovery)		(19)		41		30		76
		Amortization of fair value
		decrement (increment) on
		long-term debt		-		1		1		(2)
		Share of the income of associates
		and joint ventures accounted
		for using the equity
		method, net of tax		(1)		-		(4)		(7)
		Other		(10)		(4)		(1)		-
				1,239		1,252		3,696		3,668
	Change in non-cash operating
	working capital items			156		(102)		(268)		(371)
				1,395		1,150		3,428		3,297
	Income taxes paid			(11)		(139)		(17)		(151)
	Interest paid			(244)		(182)		(553)		(521)
				1,140		829		2,858		2,625

Investing activities:
	Additions to property, plant
	and equipment ("PP&E")			(559)		(439)		(1,474)		(1,243)
	Change in non-cash working
	capital items related to PP&E			38		58		(121)		(12)
	Acquisitions, net of cash and
	cash equivalents acquired			-		(45)		(532)		(177)
	Additions to program rights			(52)		(24)		(142)		(109)
	Other			(9)		(2)		(28)		22
				(582)		(452)		(2,297)		(1,519)

Financing activities:
	Issuance of long-term debt			240		2,425		3,650		2,475
	Repayment of long-term debt			(120)		(1,701)		(2,482)		(1,752)
	Premium on repayment of
	long-term debt			-		(79)		(76)		(79)
	Payment on settlement of
	cross-currency interest rate
	exchange agreements
	and forward contracts			-		(816)		(1,208)		(816)
	Proceeds on settlement of
	cross-currency interest rate
	exchange agreements
	and forward contracts			-		547		878		547
	Transaction costs incurred			-		(8)		(10)		(8)
	Repurchase of Class B
	Non-Voting shares			(440)		(335)		(725)		(965)
	Proceeds received on exercise
	of stock options			1		1		1		3
	Dividends paid			(194)		(187)		(568)		(550)
				(513)		(153)		(540)		(1,145)

Change in cash and
cash equivalents (bank advances)				45		224		21		(39)

Cash and cash equivalents
(bank advances), beginning of period				(69)		115		(45)		378
Cash and cash equivalents
(bank advances), end of period			$	(24)	$	339	$	(24)	$	339

The change in non-cash operating working
capital items is as follows:
	(Increase)/Decrease in accounts
	receivable		$	53	$	(151)	$	31	$	(110)
	(Increase)/Decrease in other assets			45		-		(90)		(130)
	Increase/(Decrease) in accounts payable
	and accrued liabilities			62		77		(204)		(113)
	Increase/(Decrease) in income taxes payable			2		(5)		5		(5)
	Increase/(Decrease) in unearned revenue			(6)		(23)		(10)		(13)
			$	156	$	(102)	$	(268)	$	(371)

Caution Regarding Forward-Looking Statements, Risks and Assumptions

This earnings release includes forward-looking statements and assumptions concerning our business, its operations and its financial performance and condition approved by management on the date of this earnings release. These forward-looking statements and assumptions include, but are not limited to, statements with respect to our objectives and strategies to achieve those objectives, statements with respect to our beliefs, plans, expectations, anticipations, estimates or intentions, including guidance and forecasts relating to revenue, adjusted operating profit, PP&E expenditures, free cash flow, dividend payments, expected growth in subscribers and the services to which they subscribe, the cost of acquiring subscribers and the deployment of new services, the currently estimated financial impacts of converting to IFRS accounting standards, and all other statements that are not historical facts. Such forward-looking statements are based on current objectives, strategies, expectations and assumptions, most of which are confidential and proprietary, that we believe to be reasonable at the time including, but not limited to, general economic and industry growth rates, currency exchange rates, product pricing levels and competitive intensity, subscriber growth and usage rates, changes in government regulation, technology deployment, device availability, the timing of new product launches, content and equipment costs, the integration of acquisitions, industry structure and stability, and current guidance from accounting standard bodies with respect to the conversion to IFRS accounting standards.

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 of the financial information contained herein.

We caution that all forward-looking information, including any statement regarding our current intentions, is inherently subject to change and uncertainty and that actual results may differ materially from the assumptions, estimates or expectations reflected in the forward-looking information. A number of factors could cause actual results to differ materially from those in the forward-looking statements or could cause our current objectives and strategies to change, including but not limited to new interpretations 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 and the emergence of new opportunities, many of which are beyond our control and current expectation or knowledge. Therefore, should one or more of these risks materialize, should our objectives or strategies change, or should any other factors underlying the forward-looking statements prove incorrect, actual results and our plans may vary significantly from what we currently foresee. Accordingly, we warn investors to exercise caution when considering any such forward-looking information herein and that it would be unreasonable to rely on such statements as creating any 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 forward-looking statements or assumptions whether as a result of new information, future events or otherwise, except as required by law.

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 "Updates to Risks and Uncertainties" and "Government Regulation and Regulatory Developments", and also sections entitled "Risks and Uncertainties Affecting our Businesses" and "Government Regulation and Regulatory Developments" in our 2010 Annual MD&A. Our annual and quarterly reports can be found online at rogers.com, sedar.com and sec.gov or are available directly from Rogers.

About Rogers Communications Inc.

Rogers Communications is a diversified Canadian communications and media company. We are Canada's largest provider of wireless voice and data communications services and one of Canada's leading providers of cable television, high-speed Internet and telephony services. 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.

Quarterly Investment Community Conference Call

As previously announced by press release, a live webcast of our quarterly results conference call with the investment community will be broadcast via the Internet at rogers.com/webcast beginning at 8:00 a.m. ET today, October 26, 2011. A rebroadcast of this teleconference will be available on the Events and Presentations page of Rogers' Investor Relations website rogers.com/investors for a period of at least two weeks following the conference call.

For further information:

Investment Community Contacts

Bruce M. Mann, 416.935.3532, bruce.mann@rci.rogers.com
Dan Coombes, 416.935.3550, dan.coombes@rci.rogers.com

Media Contact

Terrie Tweddle, 416.935.4727, terrie.tweddle@rci.rogers.com

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Rogers Wireless News

Friday, October 28, 2011

Platinum programs world

HAL cux LOWEEN SA yg LES!

Wednesday, October 26, 2011

Rogers Reports Third Quarter 2011 Financial and Operating Results

Rogers Reports Third Quarter 2011 Financial and Operating Results

Engadget Mobile

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