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Rogers Reports First Quarter 2011 Financial and Operating Results

April 26, 2011

First Quarter Revenue Increases 4% to $3.0 Billion, Adjusted Earnings
Per Share up 13% to $0.76, $597 Million of Free Cash Flow Generated;

Wireless Adds 45,000 Net New Postpaid Subscribers, Adds Record Number of
New Smartphone Customers, While Wireless Data Revenue Growth Strong at
30% and Margins at 49%;

Cable Operations Adjusted Operating Profit Increases 12% Driving Margins
to 47% on Continued Subscriber Growth and Cost Efficiencies;

Media Revenue up by 17% as Revenue Increased In All of Media’s
Divisions;

$464 Million of Cash Returned to Rogers Shareholders in Dividends and
Share Buybacks

TORONTO, April 26 /PRNewswire-FirstCall/ – Rogers Communications Inc. today announced its
consolidated financial and operating results for the three months ended
March 31, 2011 and 2010, in accordance with the newly adopted
International Financial Reporting Standards (“IFRS”).

Financial highlights are as follows ((1)):


                                         Three months ended March 31,

    (In millions                 2011            2010             % Chg
    of dollars,
    except per
    share amounts)

    Operating             $        2,987  $        2,876
    revenue                                                               4
    Adjusted                       1,160           1,159
    operating                                                             -
    profit                           423             397
    Adjusted net         $          0.76 $          0.67                  7
    income                                                               13
    Adjusted basic
    and diluted
    earnings per
    share

    (1)      This summary of our first quarter 2011 results should be read
             in conjunction with our first quarter 2011 MD&A, our first
             quarter 2011 Interim Unaudited Consolidated Financial
             Statements and Notes thereto, 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.

“The first quarter results represent a healthy start to 2011 for
Rogers,” said Nadir Mohamed, President and Chief Executive Officer of
Rogers Communications Inc. “We’ve maintained solid top line growth
rates as a result of continued investments in our customer
relationships, networks and products supported by a sharp focus on
wireless data and subscriber retention initiatives. While at the same
time, our successful focus on managing costs has enabled continued
strong margins and the generation of substantial free cash flow.”

Highlights of the first quarter of 2011 include the following:

        --  Generated consolidated quarterly revenue growth of 4%, with
            Wireless network revenue growth of 3%, Cable Operations revenue
            growth of 3%, and Media revenue growth of 17%, versus the same
            quarter last year. While Cable Operations adjusted operating
            profit increased by 12%, this was offset by a 5% decline at
            Wireless primarily reflecting costs associated with the
            significant year-over-year increase in smartphone activations
            and a decline at Media due to increased sports programming
            costs.

        --  Wireless data revenue growth accelerated to 30% and net
            postpaid subscriber additions totalled 45,000, helping drive
            wireless data revenue to now comprise 34% of Wireless network
            revenue.  During the quarter, Wireless activated and upgraded
            534,000 additional smartphones, of which approximately 36% were
            for subscribers new to Wireless, compared to 348,000 in the
            prior year quarter. This represents the largest single
            quarterly addition of new smartphone subscribers. This resulted
            in subscribers with smartphones, who typically generate ARPU
            nearly twice that of voice only subscribers, representing 45%
            of the overall postpaid subscriber base as at March 31, 2011,
            up from 33% as at March 31, 2010.

        --  Wireless launched Canada's first business-class Wi-Fi voice
            service for smartphones to help business customers save time
            and money.  The service allows businesses to place mobile calls
            from their smartphones over their office Wi-Fi network that do
            not count towards monthly voice plan minutes.

        --  Wireless announced the geographic expansion of its next
            generation high-speed wireless network by 150 times to cover 96
            per cent of the Manitoba population, bringing download speeds
            of up to 21 megabits per second and even greater device
            selection.

        --  Cable deployed its highly popular SpeedBoost technology for
            high-speed Internet subscribers which detects when there's
            available bandwidth on the network and automatically delivers a
            temporary burst of speed for the first 10 MB of a download or
            stream which loads content faster and delivers a superior
            online experience.

        --  Rogers closed the acquisition of Atria Networks, one of
            Ontario's largest fibre-optic networks, which augments Rogers
            Business Solutions' enterprise offerings by further enhancing
            its ability to deliver on-net data centric services within and
            adjacent to Cable's footprint.

        --  Rogers Sportsnet and Tennis Canada announced a multi-year
            agreement to broadcast the Rogers Cup that will also allow
            Sportsnet to broadcast over 20 top tier ATP World Tour
            Tournaments.  Sportsnet also announced a multi-year agreement
            to broadcast highly popular Ultimate Fighting Championship
            (UFC) events in Canada.

        --  Generated $597 million of consolidated free cash flow in the
            quarter, defined as adjusted operating profit less PP&E
            expenditures, interest on long-term debt and cash income taxes,
            down modestly from $619 million in the first quarter of 2010
            reflecting steady levels of adjusted operating profit being
            offset by a moderately increased level of PP&E expenditures.
            Free cash flow per share increased by 3% over the same period
            reflecting accretion from share buybacks which have decreased
            the base of outstanding shares.

        --  Refinanced higher cost 2012 debt maturities with the March 2011
            issuance of $1,450 million of 5.34% Senior Notes due 2021 and
            $400 million of 6.56% Senior Notes due 2041.

        --  Increased our annualized dividend rate by 11% to $1.42 per
            share in February 2011, and immediately declared a quarterly
            dividend of $0.355 a share on each of our outstanding shares at
            the new, higher rate.

        --  Announced a share buyback authorization of up to $1.5 billion
            of Rogers' Class B Non-Voting shares on the open market over
            the coming year. Under this renewed buyback authorization, we
            repurchased 9 million RCI Class B Non-Voting shares for $285
            million during the quarter.

This earnings release, which is current as of April 26, 2011, is a
summary of our first quarter 2011 results and should be read in
conjunction with our first quarter 2011 MD&A, our first quarter 2011
Interim Unaudited Consolidated Financial Statements and Notes thereto,
our 2010 Annual MD&A and our 2010 Annual Audited Consolidated Financial
Statements and Notes thereto and other recent securities filings
available on rogers.com or sedar.com.

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.

The amounts in this earnings release, our MD&A and our interim financial
statements for the three months ended March 31, 2010 have been restated
to reflect our adoption of IFRS, with effect from January 1, 2010.
Periods prior to January 1, 2010 have not been restated and are
prepared in accordance with Canadian GAAP. Please refer to Note 3 of
our First Quarter 2011 Interim Unaudited Consolidated Financial
Statements for a summary of the differences between our financial
statements previously prepared under Canadian GAAP and to those under
IFRS for the three months ended March 31, 2010 and for the year ended
December 31, 2010.

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 cable and wireless products
and services are now included in the results of operations of Cable
Operations and Wireless, respectively. In addition, certain
intercompany transactions between the Company’s 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 of the Company 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 March 31,

    (In millions of                  2011              2010              % Chg
    dollars, except
    per share
    amounts)

    Operating
    revenue

        Wireless               $        1,721    $        1,662
        Cable                                                                    4

          Cable                           813               790
          Operations                      116               111                  3
          RBS                              24
          Video                                              41                  5
                                                                              (41)

                                          953               942
                                                                                 1

        Media                             339               290                 17
        Corporate                        (26)                                   44
        items and                                          (18)
        eliminations

    Total                               2,987             2,876
                                                                                 4

    Adjusted
    operating profit
    (loss)

        Wireless                          790               829
        Cable                                                                  (5)

          Cable                           382               340                 12
          Operations                       26                                  n/m
          RBS                                                 8                n/m
          Video                           (7)
                                                            (2)

                                          401               346                 16

        Media                            (10)                                  n/m
        Corporate                        (21)                 5
        items and                                                                -
        eliminations                                       (21)

    Adjusted                            1,160             1,159
    operating profit                                                             -

    Stock-based                                                               (69)
    compensation                          (8)              (26)
    expense

    Integration,                         (11)                                  n/m
    restructuring                                           (2)
    and acquisition
    expenses

    Other items, net                                                           n/m
                                            -              (15)

    Operating profit                    1,141             1,116
                                                                                 2

    Other income and                      806               748
    expense, net                                                                 8

    Net income                $           335   $           368
                                                                               (9)

    Basic and                 $          0.60   $          0.62
    diluted earnings                                                           (3)
    per share

    As adjusted:                                                                  

        Net income            $           423   $           397
        Basic and             $          0.76   $          0.67                  7
        diluted                                                                 13
        earnings per
        share

    Additions to
    PP&E

        Wireless              $           218   $           199                 10
        Cable                                                                     

          Cable                           150               118                 27
          Operations                       11                                   83
          RBS                                                 6                n/m
          Video                             -
                                                              1

                                          161               125                 29

        Media                                                                  100
        Corporate                           8                 4               (78)

                                            8                37

    Total                     $           395   $           365
                                                                                 8

SEGMENT REVIEW

WIRELESS

Summarized Wireless Financial Results


                                          Three months ended March 31,

    (In millions                  2011             2010             % Chg
    of dollars,
    except
    margin)

    Operating
    revenue

      Postpaid              $        1,544  $        1,504
      Prepaid                           71                                 3
                                                        66
                                                                           8

      Network                        1,615
      revenue                          106           1,570                 3
      Equipment
      sales                                             92                15

    Total                            1,721
    operating                                        1,662                 4
    revenue

    Operating
    expenses
    before the
    undernoted

      Cost of                          302
      equipment                        629             237                27
      sales
      Other                                            596                 6
      operating
      expenses

                                       931
                                                       833                12

    Adjusted                           790
    operating                                          829               (5)
    profit

    Stock-based
    compensation                       (1)             (5)              (80)
    expense

    Integration,                                                         n/m
    restructuring                        -             (1)
    and
    acquisition
    expenses

    Other items,                                                         n/m
    net                                  -            (10)

    Operating              $           789 $           813
    profit                                                               (3)

    Adjusted                         48.9%           52.8%
    operating                                                            (7)
    profit margin
    as % of
    network
    revenue

    Additions to           $           218 $           199
    PP&E                                                                  10

    Data revenue           $           542 $           416
    included in                                                           30
    network
    revenue

Summarized Wireless Subscriber Results


                                          Three months ended March 31,

    (Subscriber                     2011            2010             Chg
    statistics in
    thousands, except
    ARPU, churn and
    usage)

    Postpaid                                                               

      Gross additions
      Net additions                     316             278              38
      Total postpaid
      retail                             45              47             (2)
      subscribers
      Monthly churn                   7,370           7,026             344
      Average monthly                 1.23%           1.10%           0.13%
      revenue per            $        70.18  $        71.62 $        (1.44)
      user ("ARPU")

    Prepaid                                                                

      Gross additions
      Net losses                        181             128              53
      Total prepaid
      retail                           (10)            (34)              24
      subscribers
      Monthly churn                   1,642           1,481             161
      ARPU                            3.85%           3.59%           0.26%
                             $        14.32  $        14.70 $        (0.38)

    Total                                                                  

      Gross additions
      Net additions                     497             406              91
      Total postpaid
      and prepaid                        35              13              22
      retail
      subscribers                     9,012           8,507             505
      Monthly churn                   1.71%           1.54%           0.17%

    Blended ARPU             $        59.91  $        61.59 $        (1.68)

    Blended average
    monthly minutes                     450             476            (26)
    of usage

Wireless Subscribers and Network Revenue

The year-over-year increase in total net subscriber additions for the
quarter reflects relatively steady level of postpaid net additions
combined with incremental prepaid sales activity from Wireless’ launch
of its urban zone-based unlimited voice and text service, chatr.

The increase in network revenue for the three months ended March 31,
2011, compared to the corresponding period of 2010, was driven
predominantly by the continued growth of Wireless’ postpaid subscriber
base and the continued adoption of wireless data services.

For the three months ended March 31, 2011, wireless data revenue
increased by approximately 30% from the corresponding period of 2010,
to $542 million. This growth in wireless data revenue reflects the
continued penetration and growing usage of smartphone and wireless
laptop devices which are driving increased usage of e-mail, wireless
Internet access, text messaging and other wireless data services. For
the three months ended March 31, 2011, data revenue represented
approximately 34% of total network revenue, compared to approximately
26% in the corresponding period of 2010.

For the three months ended March 31, 2011, Wireless activated and
upgraded approximately 534,000 smartphones, compared to approximately
348,000 smartphones in the first quarter of 2010. These smartphones
were predominately iPhone, BlackBerry and Android devices, of which
approximately 36% were for subscribers new to Wireless, during the
three months ended March 31, 2011. This resulted in subscribers with
smartphones representing 45% of the overall postpaid subscriber base as
at March 31, 2011, compared to 33% as at March 31, 2010. These
subscribers generally commit to new multi-year-term contracts, and
typically generate ARPU nearly twice that of voice only subscribers.
This is the largest number of new smartphone customer additions that
Wireless has ever reported in a quarter.

Year-over-year blended ARPU decreased by 2.7%, which reflects declines
in roaming, long-distance, out-of-plan usage and network access fee
revenues, offset by higher wireless data and feature revenues. These
decreases are primarily due to the creation of voice and data roaming
value plans for frequent travelers over the past year and general
competitive intensity.

Wireless Equipment Sales

The year-over-year increase for the three months ended March 31, 2011 in
revenue from equipment sales, including activation fees and net of
equipment subsidies, versus the corresponding period of 2010, reflects
an increase in the number of smartphone activations.

Wireless Operating Expenses


                                           Three months ended March 31,

    (In millions                  2011              2010              % Chg
    of dollars)

    Operating
    expenses

      Cost of              $           302   $           237
      equipment                        629               596                27
      sales
      Other                                                                  6
      operating
      expenses

    Operating                          931               833
    expenses                                                                12
    before the
    undernoted

    Stock-based                          1
    compensation                                           5              (80)
    expense

    Integration,                                                           n/m
    restructuring                        -                 1
    and
    acquisition
    expenses

    Other items,                                                           n/m
    net                                  -                10

    Total                  $           932   $           849
    operating                                                               10
    expenses 

The $65 million increase in cost of equipment sales for the three months
ended March 31, 2011, compared to the corresponding period of 2010, was
primarily the result of an increase in gross additions versus the prior
period and a continued increase in the mix of smartphones for both new
and upgrading subscribers. This was the single largest factor driving
the year-over-year increase in expenses, and Wireless views these costs
as net present value positive investments in the acquisition and
retention of higher ARPU, in that they reflect lower churning customers
who are on term contracts.

The year-over-year increase in other operating expenses for the three
months ended March 31, 2011, excluding retention spending discussed
below, was driven by increased spending on advertising and promotion
costs for new marketing campaigns, higher data activations, and higher
sales costs associated with both volumes and mix, which were offset by
savings resulting from cost reduction initiatives and scale
efficiencies across various functions.

Total retention spending, including subsidies on handset upgrades, was
$183 million in the three months ended March 31, 2011, compared to $150
million in the corresponding period of 2010. The significant increase
is a result of a higher mix of smartphone upgrades by existing
subscribers, versus the corresponding period in 2010.

Wireless Adjusted Operating Profit

The 5% year-over-year decrease in adjusted operating profit and the
48.9% adjusted operating profit margin on network revenue (which
excludes equipment sales revenue) for the three months ended March 31,
2011 primarily reflect the increase in the total operating expenses
discussed above, driven heavily by the high level of smartphone
activations and upgrades and related level of subsidy spending,
partially offset by the increase in network revenue.

Wireless Additions to PP&E

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


                                                        Three months ended March 31,

    (In millions                              2011             2010              % Chg
    of dollars)

    Additions to
    PP&E

      Capacity                        $           128   $           128
      Quality                                                                            -
      Network -                                    34                43               (21)
      other                                                                             83
      Information                                  11                 6                105
      technology
      and other                                    45                22

    Total                             $           218   $           199                 10
    additions to
    PP&E

Wireless PP&E additions for the three months ended March 31, 2011
reflect spending on network capacity, such as radio channel additions,
network core improvements and network enhancing features, including the
continued deployment of our HSPA+ 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 months ending
March 31, 2011 is largely due to the increase in Information technology
and other which was driven primarily by Wireless’ share of an
enterprise data warehouse project and a new enterprise-wide billing
system.

CABLE

Summarized Cable Financial Results


                                           Three months ended March 31,

    (In millions                  2011              2010              % Chg
    of dollars,
    except
    margin)

    Operating
    revenue

      Cable                $           813   $           790
      Operations                       116               111                 3
      RBS                               24
      Video                                               41                 5

                                                                          (41)

    Total                              953               942
    operating                                                                1
    revenue

    Adjusted
    operating
    profit (loss)
    before the
    undernoted

      Cable                            382               340
      Operations                        26                                  12
      RBS                                                  8               n/m
      Video                            (7)                                 n/m
                                                         (2)

    Adjusted                           401               346
    operating                                                               16
    profit

    Stock-based
    compensation                       (1)               (3)              (67)
    expense

    Integration,                                                           n/m
    restructuring                      (8)               (1)
    and
    acquisition
    expenses

    Other items,                                                           n/m
    net                                  -               (5)

    Operating              $           392   $           337
    profit                                                                  16

    Adjusted
    operating
    profit (loss)
    margin

      Cable                          47.0%             43.0%
      Operations                     22.4%              7.2%
      RBS                          (29.2%)            (4.9%)
      Video

    Additions to
    PP&E

      Cable                $           150   $           118
      Operations                        11                                  27
      RBS                                                  6
      Video                              -                                  83
                                                           1               n/m

    Total                  $           161   $           125
    additions to                                                            29
    PP&E

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

CABLE OPERATIONS 

Summarized Financial Results


                                            Three months ended March 31,

    (In millions                    2011             2010             % Chg
    of dollars,
    except
    margin)

    Operating
    revenue

      Cable                  $           468 $           458 $               2
      Television                         224
      Internet                           121             204                10
      Home Phone
                                                         128               (5)

    Total Cable                          813
    Operations                                           790                 3
    operating
    revenue

    Operating
    expenses
    before the
    undernoted

      Cost of
      equipment                            6              14              (57)
      sales                              425
      Other                                              436               (3)
      operating
      expenses

                                         431
                                                         450               (4)

    Adjusted                             382
    operating                                            340                12
    profit

    Stock-based                          (1)
    compensation                                         (3)              (67)
    expense

    Other items,                           -                               n/m
    net                                                  (7)

    Operating                $           381 $           330  $             15
    profit

    Adjusted                           47.0%           43.0%
    operating
    profit
    margin

Summarized Subscriber Results


                                                Three months ended March 31,

    (Subscriber                        2011              2010               Chg
    statistics in
    thousands)

    Cable homes passed                    3,734             3,646
                                                                                 88

    Television                                                                     

       Net additions
       (losses)                             (8)                 1               (9)
       Total television                   2,303             2,296
       subscribers                                                                7

     Digital cable                                                                 

        Households, net
       additions                              5                26              (21)
        Total digital                     1,743             1,689
       cable households                                                          54

    Cable high-speed
    Internet

       Net additions
       Total cable                            8                17               (9)
       high-speed                         1,698             1,636
       Internet                                                                  62
       subscribers

    Cable telephony
    lines

       Net additions
       and migrations                         7                22              (15)
       Total cable                        1,014               959
       telephony lines                                                           55

    Total cable service
    units

       Net additions
       Total cable                            7                40              (33)
       service units                      5,015             4,891               124

    Circuit-switched
    lines

       Net losses and
       migrations to                        (6)              (16)                10
       cable telephony                                        108
       platform                              28                                (80)
       Total
       circuit-switched
       lines

Cable Television Revenue

The increase in Cable Television revenue for the three months ended
March 31, 2011, compared to the corresponding period of 2010, reflects
the continued increase in penetration of our digital cable product
offerings and pricing changes. The slowdown in the year-over-year
growth rate of Cable Television revenue from the fourth quarter of 2010
to the first quarter of 2011 partially reflects on-going targeted
bundling and retention initiatives to transition portions of the
subscriber base to term contracts and a lower number of subsidized
digital box sales.

Cable continues to lead the Canadian cable industry in digital cable
penetration. The digital cable subscriber base grew by 3% and
represented 76% of television subscriber base as at March 31, 2011,
compared to 74% as at March 31, 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 months
ended March 31, 2011 primarily reflects the increase in the Internet
subscriber base, combined with Internet services price changes made in
July 2010 and the timing and mix of promotional programs.

With the high-speed Internet base at approximately 1.7 million
subscribers, Internet penetration is approximately 45% of the homes
passed by our cable networks and 74% of our television subscriber base,
as at March 31, 2011.

Home Phone Revenue

Home Phone revenue for the three months ended March 31, 2011, reflects
the year-over-year growth in the cable telephony customer base with a
corresponding cable telephony revenue growth of approximately 5%,
offset by the ongoing decline of the legacy circuit-switched telephony
base. This decline of the legacy circuit-switched telephony base was
80,000 compared to the base as at March 31, 2010. During the three
months ended March 31, 2011, approximately 12,000 circuit-switched
lines were migrated, of which 9,000 were migrated to a third-party
reseller, and the remaining 3,000 were migrated to RBS. The lower net
additions of cable telephony lines in the three months ended March 31,
2011, versus the corresponding period of 2010, are the result of lower
sales and increased competition.

Cable telephony lines in service grew 6% from March 31, 2010 to March
31, 2011. At March 31, 2011, cable telephony lines represented 27% of
the homes passed by our cable networks and 44% of television
subscribers.

Cable continues to focus principally on growing its on-net cable
telephony line base. Therefore, it continues its strategy to
de-emphasize the off-net circuit-switched telephony business where
services cannot be provided fully over Rogers’ own network facilities.
During the third quarter of 2010, Cable announced that it was divesting
most of the assets related to the remaining circuit-switched telephony
operations. 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.
Approximately 42,000 of these subscribers have been migrated, leaving
approximately 28,000 lines which will be migrated during the second
quarter of 2011. For the three months ended March 31, 2011 the revenue
reported by Cable Operations associated with the residential
circuit-switched telephony business being divested totalled
approximately $7 million.

Excluding the impact of the declining circuit-switched telephony
business that Cable is in the process of divesting, the year-over-year
revenue growth for Home Phone and for Cable Operations overall for the
three months ended March 31, 2011 would have been 5% and 5%,
respectively.

Cable Operations Operating Expenses

The decrease in Cable Operations’ operating expenses for the three
months ended March 31, 2011, compared to the corresponding period of
2010, was primarily due to lower equipment sales and cost reduction and
efficiency initiatives across various functions. 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

The year-over-year growth in adjusted operating profit was primarily the
result of the revenue growth and cost changes described above. As a
result, Cable Operations’ adjusted operating profit margins increased
to 47.0% for the three months ended March 31, 2011, compared to 43.0%
in the corresponding period of 2010.

ROGERS BUSINESS SOLUTIONS

Summarized Financial Results


                                              Three months ended March 31,

    (In millions                     2011             2010              % Chg
    of dollars,
    except
    margin)

    Operating               $            116 $            111
    revenue                                                                     5

    Operating                                                                (13)
    expenses                              90              103
    before the
    undernoted

    Adjusted                                                                  n/m
    operating                             26                8
    profit

    Integration,
    restructuring                        (1)              (1)                   -
    and
    acquisition
    expenses

    Operating                 $              $                                n/m
    profit                                25                7

    Adjusted                           22.4%             7.2%
    operating
    profit margin

Summarized Subscriber Results


                                               Three months ended March 31,

    (Subscriber                          2011           2010             Chg
    statistics in
    thousands)

    Local line
    equivalents

      Total local
      line                                  143             162            (19)
      equivalents

    Broadband
    data circuits

      Total                                  53
      broadband                                              33              20
      data
      circuits

RBS Revenue

RBS revenues include external revenues only and any intercompany
revenues are treated as cost recoveries in our current presentation. 
Previously, intercompany revenues were included in RBS revenues. 
Comparative futures for 2010 have been reclassified to conform to the
current year’s presentation.

The increase in RBS revenues primarily reflects the acquisition of
Atria, partially offset by the ongoing decline in the legacy portions
of the business. RBS is focused on leveraging on-net and near-net
revenue opportunities utilizing both the acquired Atria network and
Cable’s existing network facilities to expand offerings to the
medium-sized enterprise customer base. For the three months ended March
31, 2011, the acquisition of Atria contributed revenue of $20 million,
principally in the areas of data and Internet, which was partially
offset by a decline in long-distance revenue and a decline in local
revenues, compared to the corresponding period of 2010.

RBS Operating Expenses

Operating expenses decreased for the three months ended March 31, 2011,
compared to the corresponding period of 2010 and reflects the decrease
in long-distance costs due to lower volumes and country mix, lower
sales and marketing within the medium and large enterprise and carrier
segments, and operating efficiencies with 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 data businesses and
the RBS focus on growing its on-net data revenue which has more than
offset the declines in the lower margin voice business. Cost reductions
and efficiency initiatives across various functions have also
contributed to higher operating profit in the quarter. For the three
months ended March 31, 2011, Atria contributed adjusted operating
profit of $13 million. RBS adjusted operating profit margins increased
to 22.4% for the three months ended March 31, 2011, compared to 7.2% in
the corresponding period of 2010.

 

VIDEO

Summarized Financial Results 


                                             Three months ended March 31,

    (In millions                      2011               2010           % Chg
    of dollars,
    except
    margin)

    Operating                 $             24   $             41
    revenue                                                                (41)

    Operating                               31                 43
    expenses                                                               (28)
    before the
    undernoted

    Adjusted                                                                n/m
    operating                              (7)                (2)
    loss

    Integration,                                                            n/m
    restructuring                          (7)                  -
    and
    acquisition
    expenses

    Other items,                                                            n/m
    net                                      -                  2

    Operating                 $           (14) $                -           n/m
    loss

    Adjusted                           (29.2%)             (4.9%)
    operating
    loss margin

The results of the Video segment include our video and game sale and
rental business. Previously, the Rogers Retail segment also included
the retail distribution of cable and wireless products and services.
The business related to retail distribution of cable and wireless
products and services are now included in the results of operations of
Cable Operations and Wireless, respectively. Comparative figures for
2010 have been reclassified to conform to the current year’s
presentation.

Video Revenue

The decrease in Video revenue for the three months ended March 31, 2011,
compared to the corresponding period of 2010, was the result of a
continued decline in video rental and sales activity much of which is
associated with the closure of 74 low margin store locations.

Video Adjusted Operating Loss

The adjusted operating loss at Video increased for the three months
ended March 31, 2011, compared to the corresponding period of 2010,
reflecting the trends noted above.

Cable Additions to PP&E

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


                                                   Three months ended March 31,

    (In millions of                      2011              2010              % Chg
    dollars)

    Additions to
    PP&E

      Customer                   $             46  $             46
      premise                                  60                                    -
      equipment                                                  40                 50
      Scalable                                  9                                   13
      infrastructure                                              8               (67)
      Line                                      1                                   62
      extensions                               34                 3
      Upgrades and
      rebuild                                                    21
      Support
      capital

    Total Cable                               150               118                 27
    Operations

    RBS                                        11                                   83
                                                                  6

    Video                                                                          n/m
                                                -                 1

                                  $           161   $           125                 29

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, including
            many of the costs to date of the cable telephony initiative;
        --  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 months ended March
31, 2011, compared to the corresponding period 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.

The increases in RBS PP&E additions for the three months ended March 31,
2011 reflect the timing of expenditures on customer networks and
support capital.

MEDIA

Summarized Media Financial Results


                                            Three months ended March 31,

    (In millions                    2011              2010            % Chg
    of dollars,
    except
    margin)

    Operating               $           339    $           290
    revenue                                                                 17

    Operating                                              285
    expenses                            349                                 22
    before the
    undernoted

    Adjusted                                                               n/m
    operating                          (10)                  5
    profit (loss)

    Stock-based
    compensation                        (2)                (4)            (50)
    expense

    Integration,                                                           n/m
    restructuring                       (3)                  -
    and
    acquisition
    expenses

    Operating                  $             $               1             n/m
    profit (loss)                      (15)

    Adjusted                         (2.9%)               1.7%
    operating
    profit (loss)
    margin

    Additions to            $                $               4
    PP&E                                  8                                100

Media Revenue

The 17% increase in Media’s revenue for the three months ended March 31,
2011, compared to the corresponding period of 2010, was mainly the
result of new subscriber fees generated from Sportsnet ONE and
increases in advertising sales. Overall, all divisions within Media
experienced a growth in revenue for the three months ended March 31,
2011, compared to the corresponding period of 2010.

Media Operating Expenses

Media’s operating expenses for the three months ended March 31, 2011
increased, compared to the corresponding period of 2010, due primarily
to planned increases in Television programming costs, principally in
the area of sports content. In the first quarter, Media broadcasts a
seasonally high and growing amount of relatively expensive NHL and NBA
programming. Those expenses moderate during the off-season quarters
while subscriber fees stay relatively constant thus contributing to
increasing margins in those quarters.

Media Adjusted Operating Profit (Loss)

The first quarter is historically the seasonally weakest margin quarter
for Media. The decrease in Media’s adjusted operating profit for the
three months ended March 31, 2011, compared to the corresponding period
of 2010, primarily reflects the revenue and expense changes discussed
above. The acquisition of BV! Media contributed approximately $4
million of revenue and $2 million of expenses during the quarter.

Media Additions to PP&E

Media’s PP&E additions during the three months ended March 31, 2011
increased from the corresponding period in 2010 due primarily to
Television broadcast equipment additions related to the CRTC mandated
digital transition and facilities upgrades at The Shopping Channel.

Other Media Developments

On January 31, 2011, we closed agreements to acquire BOUNCE (CHBN-FM) in
Edmonton, Alberta and BOB-FM (CHST-FM) in London, Ontario.

2011 FINANCIAL AND OPERATING GUIDANCE

We have no specific revisions to the 2011 annual guidance ranges which
we provided 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 dollars, except per share amounts)


                                                      Three months ended
                                                          March 31,

                                                      2011           2010

    Operating revenue                           $    2,987     $    2,876

    Operating expenses:                                                  

      Operating costs                                1,835          1,758
      Integration, restructuring and                    11              2
      acquisition costs                                418            406
      Depreciation and amortization 

    Operating income                                   723            710

    Finance costs                                    (268)          (183)
    Other income (expense), net                          2            (2)
    Share of the income of associates
    and joint ventures                                   3              4
      accounted for using the equity
    method, net of tax 

    Income before income taxes                         460            529

    Income tax expense (recovery):                                       

      Current                                          145            114
      Deferred                                        (20)             47

                                                       125            161

    Net income for the period                   $      335      $     368

    Earnings per share:                                                  

      Basic                                     $     0.60      $    0.62
      Diluted                                         0.60           0.62

Rogers Communications Inc.
Unaudited Interim Consolidated Balance Sheets
(In millions of dollars)


                                               March 31,        December      January 1,
                                                    2011             31,            2010
                                                                    2010

    Assets                                                                              

    Current
    assets:

      Cash and                               $               $               $
      cash
      equivalents
      Accounts
      receivable                                       -               -             378
      Other                                        1,405           1,498           1,305
      current                                        462             364             338
      assets                                           -               1               4
      Current
      portion of
      derivative
      instruments

                                                   1,867           1,863           2,025

    Property,
    plant and
    equipment
    Goodwill                                       8,598           8,437           8,136
    Intangible                                     3,282           3,108           3,011
    assets                                         2,728           2,514           2,540
    Investments                                      946             878             699
    Derivative                                         3               6              78
    instruments                                      169             175             152
    Other                                             57              52              84
    long-term
    assets
    Deferred tax
    assets 

                                             $    17,650     $    17,033     $    16,725

    Liabilities
    and
    Shareholders'
    Equity

    Current
    liabilities:

      Bank                                   $               $               $
      advances
      Accounts
      payable and
      accrued
      liabilities
      Income tax
      payable                                         49              45               -
      Current                                      1,735           2,133           2,066
      portion of                                     520             376             208
      provisions                                      19              21              14
      Current                                          -               -               1
      portion of                                      56              67              80
      long-term                                      363             329             335
      debt
      Current
      portion of
      derivative
      instruments

      Unearned
      revenue  

                                                   2,742           2,971           2,704

    Provisions
    Long-term debt
                                                      62              62              58
    Derivative                                     9,726           8,654           8,396
    instruments                                      642             840           1,004
    Other                                            216             229             177
    long-term                                        567             517             230
    liabilities
    Deferred tax
    liabilities 

                                                  13,955          13,273          12,569

    Shareholders'                                  3,695           3,760           4,156
    equity 

                                             $    17,650     $    17,033     $    16,725

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


                                                         Three months ended
                                                                  March 31,

                                                      2011             2010

    Cash provided by (used in):                                            

    Operating activities:                                                  

      Net income                              $        335     $        368
      Adjustments to reconcile net
      income
        to net cash flows from
      operating activities:

        Depreciation and
        amortization
        Program rights and Video
        rental amortization
        Finance costs                                  418              406
        Current income tax expense                      51               49
        Deferred taxes                                 268              183
        Pension contributions, net                     145              114
        of expense                                    (20)               47
        Stock-based compensation                       (2)             (12)
        expense                                          8               26
        Amortization of fair value                       -              (2)
        increment on long-term
        debt                                           (3)              (4)
        Share of the income of                           4                4
        associates and joint
        ventures accounted
        for using the equity
        method, net of tax
        Other 

                                                     1,204            1,179

      Change in non-cash operating                   (240)            (183)
      working capital items 

                                                       964              996

      Income taxes paid                                (3)              (7)
      Interest paid                                  (222)            (146)

                                                       739              843

    Investing activities:                                                  

      Additions to property, plant                   (395)            (365)
      and equipment ("PP&E")                         (128)             (89)
      Change in non-cash working                     (504)            (130)
      capital items related to                        (31)             (46)
      PP&E                                             (3)                8
      Acquisitions, net of cash and
      cash equivalents acquired
      Additions to program rights
      Other 

                                                   (1,061)            (622)

    Financing activities:                                                  

      Issuance of long-term debt                     3,015                -
      Repayment of long-term debt                  (1,817)                -
      Premium on repayment of                         (76)                -
      long-term debt
      Payment on settlement of                     (1,208)                -
      cross-currency interest rate
      exchange                                         878                -
      agreement and forward                           (10)                -
      contacts                                       (285)            (302)
      Proceeds on settlement of                          -                1
      cross-currency interest rate                   (179)            (175)
      exchange
      agreement and forward
      contacts
      Financing costs incurred
      Repurchase of Class B
      Non-Voting shares
      Proceeds received on exercise
      of stock options
      Dividends paid

                                                      318             (476)

    Decrease in cash and cash                          (4)            (255)
    equivalents (bank advances)

    Cash and cash equivalents (bank                   (45)              378
    advances), beginning of period

    Cash and cash equivalents (bank           $       (49)     $        123
    advances), end of period

    The change in non-cash
    operating working capital items
    is as follows:

      Decrease in accounts                    $        102     $        141
      receivable                                     (109)            (118)
      Increase in other assets                       (259)            (225)
      Decrease in accounts payable                       3                -
      and accrued liabilities                           23               19
      Increase in income tax
      payable
      Increase in unearned revenue

                                              $        240     $      (183)

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 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 5:00 p.m. ET today, April 26, 2011. A rebroadcast of this
teleconference will be available on the Webcast Archive page of the
Investor Relations section of rogers.com for a period of at least two
weeks following the conference call.

 

 

SOURCE Rogers Communications Inc.


Source: newswire



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