Rogers Communications Announces Doubling of Dividend, Preliminary Fourth Quarter 2007 Subscriber Statistics and 2008 Guidance



    Annual Dividend Doubled from $0.50 to $1.00 per Share and Share
    Repurchase Authorized in Form of Normal Course Issuer Bid;

    Continued Solid Subscriber Growth in Both Wireless and Cable Businesses
    Reported for Fourth Quarter 2007;

    Guidance Established for Continued Double-Digit Revenue and Operating
    Profit Growth in 2008

    TORONTO, Jan. 7 /CNW/ - Rogers Communications Inc. ("Rogers" or "RCI")
today announced a significant increase to its annual dividend, the
authorization for a share repurchase program, preliminary fourth quarter 2007
subscriber results and full year 2008 guidance ranges for selected financial
and operating statistics.
    Commenting on today's announcements, Ted Rogers, President and CEO of
Rogers said, "The actions taken today by our Board of Directors recognize the
solid financial performance and strategic positioning of Rogers combined with
our trajectory for continued double-digit revenue and operating profit growth
in 2008."
    "We ended 2007 with good subscriber results reflective of healthy demand
in the markets we serve and the quality of our service offerings, but we also
have much work to do in continuing to develop and reinforce our platforms to
secure continued growth into the future," said Ted Rogers. "Our plan for 2008
strikes a healthy balance between the continued delivery of profitable growth,
the return of increasing amounts of our growing free cash flow to
shareholders, and the investments that will help assure such growth continues
well into the future."

    Dividend Increase and Share Repurchase

    The RCI Board of Directors has approved an increase in the annual
dividend from $0.50 to $1.00 per Class A Voting ("Class A") and Class B
Non-Voting ("Class B") share effective immediately. The new annual dividend of
$1.00 per share will be paid in quarterly amounts of $0.25 per each
outstanding Class A and Class B share. Such quarterly dividends are only
payable as and when declared by Rogers' Board of Directors and there is no
entitlement to any dividend prior thereto.
    At the same time, Rogers also announced that an application for a
repurchase of its Class B shares in the form of a Normal Course Issuer Bid
("NCIB") is being filed with the Toronto Stock Exchange. The Rogers Board of
Directors has authorized the maximum number of Class B shares which may be
purchased pursuant to the NCIB to be the lesser of 15 million Class B shares,
and that number of Class B shares that can be purchased under the NCIB for an
aggregate purchase price of $300 million.

    

    Selected Preliminary Fourth Quarter 2007 Subscriber Statistics

    -------------------------------------------------------------------------
                            Three Months            Twelve Months
                            Ended December 31       Ended December 31
    -------------------------------------------------------------------------
    (Subscriber
     statistics
     in thousands,
     except churn)        2007     2006   Change      2007     2006   Change
    -------------------------------------------------------------------------

    Wireless Postpaid
     Retail Subscri-
     bers                                          5,914.3  5,398.3    516.0
      Gross additions    361.5    384.5    (23.0)  1,352.0  1,375.2    (23.2)
      Net additions      158.3    189.3    (31.0)    580.9    580.1      0.8
      Adjustment to
       postpaid
       subscriber
       base(1)                                       (64.9)       -    (64.9)
      Churn %             1.17%    1.24%   -0.07%     1.15%    1.32%   -0.17%

    Wireless Prepaid
     Retail
     Subscribers                                   1,424.2  1,380.0     44.2
      Gross additions    156.3    181.1    (24.8)    635.0    615.4     19.6
      Net additions       25.0     55.2    (30.2)     69.7     30.2     39.5
      Adjustment to
       prepaid
       subscriber
       base(1)                                       (25.5)       -    (25.5)
      Churn %             3.12%    3.14%   -0.02%     3.42%    3.70%   -0.28%
    -------------------------------------------------------------------------
    Total Wireless
     Retail
     Subscribers                                   7,338.5  6,778.3    560.2
      Gross additions    517.8    565.6    (47.8)  1,987.0  1,990.6     (3.6)
      Net additions      183.3    244.5    (61.2)    650.6    610.3     40.3
      Adjustment to
       subscriber
        base(1)                                      (90.4)       -    (90.4)

    Basic Cable
     Subscribers                                   2,295.4  2,277.1     18.3
      Net additions       20.0     10.7      9.3      18.3     13.3      5.0

    Digital Cable
     Households                                    1,352.5  1,134.0    218.5
      Net additions       60.7     69.6     (8.9)    218.5    220.7     (2.2)

    Residential
     High-speed
     Internet
     Subscribers(2)(5)                             1,465.4  1,296.6    168.8
      Net additions       46.3     47.4     (1.1)    164.5    160.4      4.1

    Residential Cable
     Telephony
     Subscribers                                     655.8    365.9    289.9
      Net additions(3)    65.3     95.1    (29.8)    289.9    318.0    (28.1)

    Residential
     Circuit-Switched
     Telephony
     Subscribers(2)(3)                               334.2    349.6    (15.4)
      Net additions
       (losses)           (3.4)    (8.4)     5.0     (36.6)   (41.2)     4.6
    -------------------------------------------------------------------------
    Revenue Generating
     Units (RGU's)(4)(5)                           6,103.3  5,423.2    680.1
      Net additions      188.9    214.4    (25.5)    654.6    671.2    (16.6)
    -------------------------------------------------------------------------

    1. During the second quarter of 2007, Wireless decommissioned its
       Time Division Multiple Access ("TDMA") and analog network and
       simultaneously revised certain aspects of its subscriber reporting for
       data-only subscribers. The deactivation of the remaining TDMA
       subscribers and the change in subscriber reporting resulted in the
       removal of approximately 64,900 subscribers from Wireless' postpaid
       subscriber base and the removal of approximately 25,500 subscribers
       from Wireless' prepaid subscriber base. These adjustments are not
       included in the determination of postpaid or prepaid monthly churn or
       net additions.

    2. Included in total subscribers are approximately 4,300 residential
       high-speed Internet and 21,200 residential circuit-switched telephony
       subscriber lines acquired from Futureway in June 2007.

    3. Includes approximately 2,100 and 41,800 migrations from residential
       circuit-switched telephony to residential cable telephony for the
       three and twelve months ended December 31, 2007, respectively
       (2006 - 13,100 and 36,700 respectively).

    4. Residential cable revenue generating units (RGUs) are comprised of
       basic cable subscribers, digital cable households, residential
       high-speed Internet subscribers and residential cable and
       circuit-switched telephony subscribers.

    5. Prior year high-speed Internet subscribers and RGUs have been
       reclassified to conform to the current year presentation.


    Full Year 2008 Financial and Operating Guidance

    The following table outlines guidance ranges and assumptions for selected
financial and operating statistics for 2008. This information is
forward-looking and should be read in conjunction with the section below
entitled 'Caution Regarding Forward-Looking Statements' and in related
disclosures, for the various economic, competitive, and regulatory assumptions
and factors that could cause actual future financial and operating results to
differ from those currently expected.

    Full Year 2008 Guidance
                                                          -------------------
    ---------------------------------------------------           2008
    (Millions of dollars, except subscribers)               Guidance Range
    ---------------------------------------------------   -------------------

    Consolidated
      Revenue(1)                                          $11,200 to $11,500
      Operating profit (as adjusted)(2)                     4,000 to   4,200
      Additions to property, plant and equipment
       ("PP&E")                                             1,900 to   2,100
      Free cash flow(3)                                     1,400 to   1,600

    Supplementary Detail:

    Revenue
      Wireless (network revenue)                          $ 5,800 to $ 5,900
      Cable Operations(4)                                   2,900 to   2,950
      Media                                                 1,525 to   1,575

    Operating profit (as adjusted)(2)
      Wireless(5)                                         $ 2,875 to $ 2,975
      Cable Operations(4)                                   1,130 to   1,190
      Media(6)                                                165 to     180

    Additions to PP&E(7)
      Wireless                                            $   850 to $   925
      Cable Operations(4)                                     750 to     830
      Media                                                    80 to      95

    Net subscriber additions (000's)
      Retail wireless postpaid and prepaid                    550 to     625
      Residential cable revenue generating units
       (RGUs)(8)                                              550 to     625
    -------------------------------------------------------------------------

    1. In addition to Wireless Network, Cable Operations and Media revenue,
       includes revenue from Wireless equipment, Rogers Business Solutions,
       Rogers Retail and Corporate items and eliminations.

    2. Excludes stock-based compensation expense and integration and
       restructuring related expenditures.

    3. Free cash flow is defined as operating profit (as adjusted) less
       PP&E expenditures and interest expense and is not a term defined under
       Canadian GAAP.

    4. Includes cable television, residential high-speed Internet and
       residential telephony activities; excludes Rogers Business Solutions
       and Rogers Retail.

    5. Excludes operating losses related to the Inukshuk fixed wireless
       initiative estimated at $25-$30 million in 2008.

    6. Includes losses from Sports Entertainment estimated at $20-$25 million
       in 2008.

    7. Excludes PP&E expenditures related to integration activities and the
       Inukshuk fixed wireless initiative.

    8. Residential cable revenue generating units (RGUs) are comprised of
       basic cable subscribers, digital cable households, residential
       high-speed Internet subscribers and residential cable and
       circuit-switched telephony subscribers.

    
    The 2008 additions to PP&E and free cash flow guidance does not include
the potential acquisition of wireless spectrum from the Canadian Government
during an auction scheduled to begin in May 2008 in which Rogers currently
intends to participate. The guidance for 2008 PP&E expenditures includes the
following incremental investment initiatives currently contemplated in
addition to the recurring investments required to grow and maintain the
current operations of Rogers' businesses.
    During 2008 Wireless intends to expand its High-Speed Packet Access
("HSPA") 3.5G network coverage beyond the current 58% of the population in its
coverage area, to continue to increase data throughput speeds across the HSPA
network and to also make significant investments in the capacity of its
backhaul facilities. Wireless will also continue to invest to maintain its
network quality leadership position, as well as in initiatives to improve the
reliability, redundancy and survivability of the wireless network.
    During 2008 Cable intends to invest in the deployment of switched digital
video technology which will enable it to significantly expand capacity for new
digital and high-definition services. In addition, Cable will invest to expand
Internet capacity to meet increasing usage demands, to accommodate continued
expansion of its digital cable and telephony customer bases, to upgrade many
of the remaining rural systems to 860MHz bandwidth to enable the provision of
new services in those markets, and to improve the reliability, redundancy and
survivability of the cable network.
    During 2008 Media intends to build out a new state-of-the-art production
facility to house its Citytv and OMNI television operations in Toronto, as
well as to complete the new national high-definition studio facility of
Sportsnet and to build and launch two new OMNI television stations in Edmonton
and Calgary.
    During 2008, at the corporate level Rogers intends to invest in a
business transformation initiative to begin designing and developing new and
enhanced customer billing and operating support systems and related
infrastructure for the Wireless and Cable businesses. In addition, RCI intends
to invest in improvements to certain of its corporate owned real estate
facilities across the country.

    Fourth Quarter 2007 Financial Results

    Rogers currently expects to release its fourth quarter 2007 financial and
operating results on February 22, 2008 in the morning prior to the opening of
North American financial markets.

    About the Company

    Rogers Communications is a diversified Canadian communications and media
company. We are engaged in wireless voice and data communications services
through Wireless, Canada's largest wireless provider and the operator of the
country's only Global System for Mobile Communications ("GSM") based network. 
Through Cable and Telecom we are one of Canada's largest providers of cable
television, cable telephony and high-speed Internet access, and are also a
full-service, facilities-based telecommunications alternative to the
traditional telephone companies. Through Media, we are engaged in radio and
television broadcasting, televised shopping, magazines and trade publications,
and sports entertainment. 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
www.rogers.com.


    Caution Regarding Forward-Looking Statements

    This release includes forward-looking statements and assumptions
concerning the future performance of the Company's business, its operations
and its financial performance and condition approved by management on the date
of this press release and is provided for the purpose of providing to
shareholders management's current views as to guidance ranges for 2008
selected financial and operating ranges.  Such views may not be appropriate
for other purposes and, in any event, is only current as of the date hereof. 
These forward-looking statements include, but are not limited to, statements
with respect to our objectives and strategies to achieve those objectives, as
well as statements with respect to our beliefs, plans, expectations,
anticipations, estimates or intentions.  These forward-looking statments
include, but are not limited to, guidance relating to revenue, operating
profit and PP&E expenditures and free cash flow, expected growth in
subscribers, the deployment of new services and all other statements that are
not historical facts. Such forward-looking statements are based on current
expectations and various factors and assumptions applied which 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, content and equipment costs, the
integration of acquisitions, and industry structure and stability.
    We caution that all forward-looking information is inherently uncertain
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, including but not limited to 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, and the level of competitive intensity, many of which are beyond
our control. Therefore, should one or more of these risks materialize, or
should assumptions underlying the forward-looking statements prove incorrect,
actual results may vary significantly from what we currently foresee. 
Accordingly, we warn investors to exercise caution when considering any such
forward-looking information herein and to not place undue reliance on such
statements and assumptions. 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 more detailed discussion
of the risks, uncertainties, material factors and assumptions associated with
our business that were applied in drawing conclusions or making a forecast set
out in such forward-looking information, see the MD&A sections of our 2006
Annual Report entitled "Risks and Uncertainties" (found on pages 53 to 59), as
well as the "Updates to Risks and Uncertainties" and "Government Regulation
and Regulatory Developments" sections of our third quarter 2007 quarterly
MD&A. Our annual and quarterly reports can be found at www.rogers.com,
www.sedar.com, and www.sec.gov.

    %SEDAR: 00003765E          %CIK: 0000733099




For further information:

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 Contacts: Corporate and Media - Jan Innes,
(416) 935-3525, jan.innes@rci.rogers.com; Wireless and Cable - Taanta Gupta,
(416) 935-4727, taanta.gupta@rci.rogers.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890