Rogers Communications Reports Fourth Quarter 2016 Results

  • Rogers closes 2016 with continued strong revenue growth and solid flow through to adjusted operating profit and free cash flow:
    • Total service revenue and adjusted operating profit both up 3%
    • Wireless service revenue growth of 6% and adjusted operating profit growth of 5%
    • Wireless postpaid net additions of 93,000, up 62,000 year on year, with steady churn of 1.35% year on year
    • Cable revenue up slightly and adjusted operating profit growth of 2% as higher-margin Internet represents a greater proportion of total Cable revenue
    • Positive Cable total service unit net additions for the second quarter in a row, driven by Internet net additions of 30,000, up 14,000 year on year
  • Achieved 2016 growth targets and announced a stronger growth profile for 2017 guidance
  • Announced a long-term agreement with Comcast to bring X1 IPTV to our customers, expected in early 2018; net income impacted by a $484 million charge due to discontinued investment in our own IPTV product
  • Over 45% of Rogers' residential Internet base is on speeds of 100 Mbps or higher and Ignite Gigabit Internet service is now available to our entire footprint of over 4 million homes

TORONTO, Jan. 26, 2017 /CNW/ - Rogers Communications Inc. today announced its unaudited financial and operating results for the fourth quarter ended December 31, 2016.

Consolidated Financial Highlights






Three months ended December 31


Twelve months ended December 31

(In millions of Canadian dollars, except per share
amounts, unaudited)

2016

2015

% Chg


2016

2015

% Chg









Total revenue

3,510

3,452

2


13,702

13,414

2

Adjusted operating profit 1

1,259

1,226

3


5,092

5,032

1

Net income (loss) 2

(9)

299

n/m


835

1,342

(38)

Adjusted net income 1,2

382

331

15


1,481

1,479









Basic earnings (loss) per share 2

($0.02)

$0.58

n/m


$1.62

$2.61

(38)

Adjusted basic earnings per share 1,2

$0.74

$0.64

16


$2.88

$2.87









Cash provided by operating activities

1,053

950

11


3,957

3,747

6

Free cash flow 1

392

274

43


1,705

1,676

2

1

Adjusted operating profit, adjusted net income, adjusted basic earnings per share, and free cash flow are non-GAAP measures and should not be considered substitutes or alternatives for GAAP measures. These are not defined terms under IFRS and do not have standard meanings, so may not be a reliable way to compare us to other companies. See "Non-GAAP Measures" for information about these measures, including how we calculate them.

2

As a result of the IFRS Interpretations Committee's agenda decision relating to IAS 12 Income Taxes, certain amounts have been retrospectively amended. See "Accounting Changes" for more information.

"We ended 2016 with continued momentum and strong operating performance in the fourth quarter. We maintained robust Wireless revenue growth, underpinned by strong subscriber metrics, and translated this to healthy adjusted operating profit. Internet results showed sustained strength as Rogers offers customers the fastest widely available Internet speeds in our marketplace," said Alan Horn, Chairman and Interim President and CEO. "Our momentum to date as well as our commitment to further improve the customer experience, and enhance our execution, position us well to achieve our stronger growth targets for 2017."

Key Financial Highlights

Higher revenue
Revenue increased 2% this quarter, largely driven by Wireless service revenue growth of 6%.

Wireless service revenue increased primarily as a result of a larger subscriber base and the continued adoption of higher-value Share Everything plans and the increase in data usage on these plans.

Cable revenue increased marginally as strong Internet revenue growth of 9% was largely offset by the decline in Television and Phone revenue. We continue to see an ongoing shift in product mix to higher-margin Internet services. Excluding the impact of lower wholesale Internet revenue as a result of the CRTC decision that reduced interim access service rates, Cable and Internet revenue would have increased by 2% and 12%, respectively.

Media revenue decreased as a result of fewer postseason Toronto Blue Jays games compared to last year, lower overall advertising revenue, and lower circulation revenue within publishing, partially offset by higher sales at The Shopping Channel (TSC).

Higher adjusted operating profit
Higher adjusted operating profit this quarter reflects an increase in Wireless adjusted operating profit due to the strong flow through of top line growth described above and improved Cable performance due to the shift in product mix to higher-margin Internet services. Excluding the impact from the CRTC decision to reduce wholesale Internet interim access service rates described above, Cable adjusted operating profit growth would have been 5%.

Net loss and higher adjusted net income
We recorded a net loss of $9 million this quarter, primarily as a result of the $484 million impairment and other charges we recognized related to the discontinued investment in our Internet Protocol Television (IPTV) product. See "Review of Consolidated Performance" for more information. Adjusted net income increased this quarter as a result of higher adjusted operating profit, lower depreciation and amortization, and lower finance costs, partially offset by higher income tax expense.

Substantial free cash flow affords financial flexibility
This quarter, we continued to generate substantial cash flow from operating activities and free cash flow of $1,053 million and $392 million, respectively. Free cash flow was higher this quarter as a result of increased adjusted operating profit and lower additions to property, plant and equipment, partially offset by higher cash income taxes.

We ended the fourth quarter with an adjusted net debt / adjusted operating profit ratio of 3.0. Strong operating cash flow allowed us to repay a net amount of more than $300 million of debt in the quarter. See "Managing our Liquidity and Financial Resources" for more information.

Our solid financial results enabled us to reduce outstanding debt, continue to make investments in our network, and still return substantial dividends to shareholders. We paid $247 million in dividends this quarter.

Achieved 2016 Guidance

The following table outlines guidance ranges that we had previously provided and our actual results and shows 100% achievement for the selected full-year 2016 financial metrics:






(In millions of dollars, except percentages)

2015

Actual

2016

Guidance Ranges

2016

Actual

Achievement









Consolidated Guidance 1









Revenue

13,414

Increase of 1%

to

3%

13,702

2.1%


Adjusted operating profit 2

5,032

Increase of 1%

to

3%

5,092

1.2%


Additions to property, plant and equipment 3

2,440

2,300

to

2,400

2,352

n/m


Free cash flow 2

1,676

Increase of 1%

to

3%

1,705

1.7%











Missed x



Achieved √






1

The above table outlines guidance ranges for selected full-year 2016 consolidated financial metrics provided in our January 27, 2016 earnings release. Guidance ranges presented as percentages reflect percentage increases over 2015 actual results.

2

Adjusted operating profit and free cash flow are non-GAAP measures and should not be considered substitutes or alternatives for GAAP measures. These are not defined terms under IFRS and do not have standard meanings, so may not be a reliable way to compare us to other companies. See "Non-GAAP Measures" for information about these measures, including how we calculate them.

3

Includes additions to property, plant and equipment for the Wireless, Cable, Business Solutions, Media, and Corporate segments and does not include expenditures on spectrum licences.

2017 Outlook

As noted in the guidance ranges in the table below, we anticipate an even stronger growth profile in 2017. We expect to have the financial flexibility to maintain our network advantages, continue reducing debt, and return cash to shareholders.





2016

Actual

2017 Guidance

  Ranges 1

(In millions of dollars, except percentages)




Consolidated Guidance




Revenue

13,702

Increase of 3%

 to

5%


Adjusted operating profit 2

5,092

Increase of 2%

 to

4%


Additions to property, plant and equipment, net 3

2,352

2,250

 to

2,350


Free cash flow 2

1,705

Increase of 2%

 to

4%







1

Guidance ranges presented as percentages reflect percentage increases over full-year 2016 actual results.

2

Adjusted operating profit and free cash flow are non-GAAP measures and should not be considered substitutes or alternatives for GAAP measures. These are not defined terms under IFRS and do not have standard meanings, so may not be a reliable way to compare us to other companies. See "Non-GAAP Measures" for information about these measures, including how we calculate them.

3  

Includes additions to property, plant and equipment for the Wireless, Cable, Business Solutions, Media, and Corporate segments net of proceeds on disposition, but does not include expenditures for spectrum licences.

The above table outlines guidance ranges for selected full-year 2017 consolidated financial metrics. These ranges take into consideration our current outlook and our actual results for 2016. The purpose of the financial outlook is to assist investors, shareholders, and others in understanding certain financial metrics relating to expected 2017 financial results for evaluating the performance of our business. This information may not be appropriate for other purposes. Information about our guidance, including the various assumptions underlying it, is forward-looking and should be read in conjunction with "About Forward-Looking Information" and the related disclosure and information about various economic, competitive, and regulatory assumptions, factors, and risks that may cause our actual future financial and operating results to differ from what we currently expect.

We provide annual guidance ranges on a consolidated full-year basis, which are consistent with annual full-year Board-approved plans. Any updates to our full-year financial guidance over the course of the year would only be made to the consolidated guidance ranges that appear above.

About Rogers

Rogers is a leading diversified Canadian communications and media company that's working to deliver a great experience to our customers every day. We are Canada's largest provider of wireless communications services and one of Canada's leading providers of cable television, high-speed Internet, information technology, and telephony services to consumers and businesses. Through Rogers Media, we are engaged in radio and television broadcasting, sports, televised and online shopping, magazines, and digital media. Our shares are publicly traded on the Toronto Stock Exchange (TSX: RCI.A and RCI.B) and on the New York Stock Exchange (NYSE: RCI).

Quarterly Investment Community Teleconference

Our fourth quarter 2016 results teleconference with the investment community will be held on:

  • January 26, 2017
  • 8:00 a.m. Eastern Time
  • webcast available at rogers.com/webcast
  • media are welcome to participate on a listen-only basis

                    A rebroadcast will be available at rogers.com/investors on the Events and Presentations page for at least two weeks following the teleconference. Additionally, investors should note that from time to time, Rogers' management presents at brokerage-sponsored investor conferences. Most often, but not always, these conferences are webcast by the hosting brokerage firm, and when they are webcast, links are made available on Rogers' website at rogers.com/events and are generally placed there at least two days before the conference.

                    For More Information

                    You can find more information relating to us on our website (rogers.com/investors), on SEDAR (sedar.com), and on EDGAR (sec.gov), or you can e-mail us at investor.relations@rci.rogers.com. Information on or connected to these and any other websites referenced in this earnings release is not part of, or incorporated into, this earnings release.

                    You can also go to rogers.com/investors for information about our governance practices, corporate social responsibility reporting, a glossary of communications and media industry terms, and additional information about our business.

                    About this Earnings Release

                    This earnings release contains important information about our business and our performance for the three and twelve months ended December 31, 2016, as well as forward-looking information about future periods. This earnings release should be used as preparation for reading our forthcoming Management's Discussion and Analysis (MD&A) and Audited Consolidated Financial Statements for the year ended December 31, 2016, which we intend to file with securities regulators in Canada and the US in the next few weeks. These statements will be made available on the rogers.com/investors, sedar.com, and sec.gov websites or mailed upon request.

                    The financial information contained in this earnings release is prepared using International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. This earnings release should be read in conjunction with our 2015 Annual MD&A and our 2015 Audited Consolidated Financial Statements, our 2016 First, Second, and Third Quarter MD&A and Interim Condensed Consolidated Financial Statements, and our other recent filings with Canadian and US securities regulatory authorities, which are available on SEDAR at sedar.com or EDGAR at sec.gov, respectively.

                    All dollar amounts are in Canadian dollars unless otherwise stated and are unaudited. All percentage changes are calculated using the rounded numbers as they appear in the tables. Information is current as at January 25, 2017 and was approved by our Board of Directors (Board). This earnings release includes forward-looking statements and assumptions. See "About Forward-Looking Information" for more information.

                    We, us, our, Rogers, Rogers Communications, and the Company refer to Rogers Communications Inc. and its subsidiaries. RCI refers to the legal entity Rogers Communications Inc., not including its subsidiaries. Rogers also holds interests in various investments and ventures.

                    In this earnings release, this quarter refers to the three months ended December 31, 2016 and year to date or full-year refer to the twelve months ended December 31, 2016. All results commentary is compared to the equivalent periods in 2015 or as at December 31, 2015, as applicable, unless otherwise indicated.

                    Reporting Segments
                    We report our results of operations in four reporting segments. Each segment and the nature of its business is as follows:



                    Segment

                    Principal activities

                    Wireless

                    Wireless telecommunications operations for Canadian consumers and businesses.

                    Cable

                    Cable telecommunications operations, including Internet, television, and telephony (phone) services for Canadian consumers and businesses.

                    Business Solutions

                    Network connectivity through our fibre network and data centre assets to support a range of voice, data, networking, hosting, and cloud-based services for the enterprise, public sector, and carrier wholesale markets.

                    Media

                    A diversified portfolio of media properties, including sports media and entertainment, television and radio broadcasting, specialty channels, multi-platform shopping, publishing, and digital media.

                    Wireless, Cable, and Business Solutions are operated by our wholly-owned subsidiary, Rogers Communications Canada Inc. (RCCI), and certain of our other wholly-owned subsidiaries. Media is operated by our wholly-owned subsidiary, Rogers Media Inc., and its subsidiaries.

                    Strategic Update

                    Rogers' strategy is designed to re-accelerate revenue growth in a sustainable way and translate this revenue growth into strong margins, adjusted operating profit, free cash flow, an increasing return on assets, and returns to shareholders.

                    Our fourth quarter and full-year 2016 results reflect solid execution of our strategy and the value inherent in our unique asset portfolio, including our best-in-class wireless and cable networks.

                    In 2017, we plan to further enhance our financial flexibility and execution, as well as capture cost and productivity improvements we see throughout our business. We believe this will position us well to translate our revenue growth into increased profitability and free cash flow.

                    Improving the Customer Experience
                    Our priority is to offer the products and services our customers want and need for the best experience. With that in mind, we launched a number of tools and offerings in 2016 with a focus on becoming a leader in self-serve options. For instance, we expanded worry-free wireless roaming, simplified mobile-first billing, and introduced a tool that allows families to manage their wireless data usage in real time. In 2015, we were the first telecommunications company in the world to launch customer care via Facebook Messenger, and this year, we were among the first globally to launch on Twitter. Our latest example of a self-serve option was the launch of Rogers EnRoute in the fourth quarter. This tool allows customers to track on their phone when a technician will arrive for an installation or service call. Our approach is resonating with customers, as we saw 42% more self-service transactions on the Rogers brand this quarter year on year and 56% more for the full-year 2016.

                    We look forward to doing more for our customers in 2017, including offering more self-serve options and new ways to interact with us digitally.

                    Maintaining Leadership and Momentum in Wireless
                    Despite an intense competitive backdrop, our fourth quarter results built on the strong momentum we have seen over the past year and we closed 2016 with the best Wireless service revenue growth and subscriber performance in many years. These results reflected a strong translation to adjusted operating profit, with fourth quarter growth of 5%. Fourth quarter Wireless service revenue growth of 6% was the highest since 2010 and postpaid net additions of 93,000 were the highest of any fourth quarter since 2009. On an annual basis, Wireless service revenue growth of 5% was the highest since 2009 and postpaid net additions of 286,000, up 180,000, were the highest since 2010.

                    Postpaid Wireless churn remained stable year on year in the fourth quarter and decreased four basis points in 2016 for the lowest postpaid churn rate since 2010. We will strive to make further improvements to churn going forward with our focus on further improving the customer experience.

                    We continued to make investments to enhance wireless network coverage and the quality of our network. Deployment of our prime 700 MHz LTE network has reached about 91% of Canada's population at the end of 2016. Deployment of our overall LTE network has reached about 95% of Canada's population at year-end.

                    Improving Cable on the Strength of Internet and our Partnership with Comcast
                    Subscriber trends have been improving in our Cable segment on the popularity of Ignite Internet, as Rogers offers the fastest widely available Internet speeds in our marketplace. For the second quarter in a row, we reported positive Cable total service unit net additions, driven by Internet net additions of 30,000, up 14,000 year on year.

                    Our Cable product mix continued to shift to higher-margin Internet services, driving overall Cable adjusted operating profit growth of 2% in the fourth quarter. We generated Internet revenue growth of 9% this quarter and double-digit Internet revenue growth of 11% in 2016. Excluding the impact of lower wholesale revenue as a result of the CRTC's decision to reduce interim access service rates, Cable revenue and adjusted operating profit growth this quarter were 2% and 5%, respectively. Similarly, Internet revenue growth increases to double-digit growth of 12% from 9% in the quarter, excluding this same impact.

                    Approximately 46% of our residential Internet base is on plans of 100 megabits per second or higher. We now offer Ignite Gigabit Internet service to our entire Cable footprint of over four million homes. Our hybrid fibre-coaxial cable network allows us to make incremental success-based investments as the demand for greater speed and capacity grows. We believe this positions us well to earn attractive returns on investment for our shareholders.

                    Late in 2016, Rogers announced a long-term agreement with Comcast Corporation (Comcast) to bring our customers a best-in-class TV product and expect to deploy Comcast's X1 IP-based video platform in early 2018. We are moving to this hosted platform to ensure we will have access to the scale and technical roadmap needed to meet the ongoing pace of IPTV innovation. Customers will benefit from Comcast's substantial research and development investments and their continuing commitment to innovation. Comcast attributes the transformative X1 platform to improving Xfinity TV subscriber performance, reducing churn, and increasing engagement for customers.

                    Our adoption of the X1 platform not only includes access to the most advanced IPTV solution, but also to Comcast's state-of-the-art customer premise equipment, including advanced DOCSIS 3.1 Wi-Fi gateways, Wi-Fi extenders, and wireless set-top boxes as well as the ability to send video to other third party companion devices (such as tablets and smartphones).

                    By mid-2017, Rogers plans to bring its customers the new advanced DOCSIS 3.1 Wi-Fi gateway, which is capable of delivering up to nine gigabits per second over Wi-Fi within the home, supports voice, home monitoring, and automation applications, and can act as the core in-home gateway for video and data applications. Throughout 2017, we also intend to provide our customers with further enhancements to our existing TV platform, including more 4K content.

                    First on the innovation roadmap, we intend to adopt Comcast's new Digital Home solution. This whole-home networking solution will provide customers with a simple, fast, and intuitive way to control and manage their connected devices. The cloud-based platform will link to the new DOCSIS 3.1 Wi-Fi gateway devices to deliver fast, reliable connectivity in the home and will allow people to easily add or pause devices, pair Wi-Fi extenders that boost signal strength, and use voice controls to see who is on the network, all in a safe and secure manner. This should help support the broader adoption of connected devices and the Internet of Things (IoT).

                    The all-IP combination of voice, data, video, smart home monitoring, and IoT using a combination of the most extensive DOCSIS 3.1-based, gigabit-capable network in Canada, along with Rogers and Comcast technology, will provide our customers with a best-in-class next generation residential service suite in Canada.

                    Media Focused on Sports
                    Media remains focused on our strong portfolio of live sports entertainment, including our ownership of the Toronto Blue Jays, our exclusive NHL agreement, and our joint venture interest in MLSE. For the second year in a row, Sportsnet was the number-one sports media brand in Canada and the gap has widened. Sportsnet plans to deliver more than 100 live sporting events in 4K in 2017. Consumer interest in 4K TV continues to grow as evidenced by leading manufacturer expectations for 4K TV sales to top 50% of all TV sales in 2017. To achieve the high quality 4K resolution, significantly higher bandwidths are required. With more 4K television sets and video streaming devices in the home, the high bit rate requirement further emphasizes the speed and capacity advantages of Rogers' hybrid fibre-coaxial cable network over the legacy networks of our telecommunication competitors.

                    In the fourth quarter of 2016, we committed to accelerating our shift from print to digital media in order to keep pace with changing audience demands. Since then, we have been realigning resources and developing the roadmap that will drive innovation and new content ideas while increasing digital audiences and revenue. A particular focus in 2017 will be the launch of some new initiatives that will help solidify our position in the digital space.

                    Corporate Developments
                    We intend to hire Joseph Natale as President and CEO effective July 2017. Alan Horn is currently acting as our Interim President and CEO.

                    Summary of Consolidated Financial Results






                    Three months ended December 31


                    Twelve months ended December 31

                    (In millions of dollars, except margins and per share amounts)

                    2016


                    2015


                    % Chg


                    2016


                    2015


                    % Chg









                    Revenue









                    Wireless

                    2,058


                    1,981


                    4


                    7,916


                    7,651


                    3


                    Cable

                    858


                    855



                    3,449


                    3,465



                    Business Solutions

                    96


                    95


                    1


                    384


                    377


                    2


                    Media

                    550


                    560


                    (2)


                    2,146


                    2,079


                    3


                    Corporate items and intercompany eliminations

                    (52)


                    (39)


                    33


                    (193)


                    (158)


                    22

                    Revenue

                    3,510


                    3,452


                    2


                    13,702


                    13,414


                    2









                    Adjusted operating profit









                    Wireless

                    792


                    754


                    5


                    3,285


                    3,239


                    1


                    Cable

                    435


                    426


                    2


                    1,674


                    1,658


                    1


                    Business Solutions

                    30


                    30



                    123


                    116


                    6


                    Media

                    49


                    56


                    (13)


                    169


                    172


                    (2)


                    Corporate items and intercompany eliminations

                    (47)


                    (40)


                    18


                    (159)


                    (153)


                    4

                    Adjusted operating profit 1

                    1,259


                    1,226


                    3


                    5,092


                    5,032


                    1









                    Adjusted operating profit margin 1

                    35.9%


                    35.5%


                    0.4pts


                    37.2%


                    37.5%


                    (0.3pts)









                    Net (loss) income 2

                    (9)


                    299


                    n/m


                    835


                    1,342


                    (38)

                    Basic (loss) earnings per share 2

                    ($0.02)


                    $0.58


                    n/m


                    $1.62


                    $2.61


                    (38)

                    Diluted (loss) earnings per share 2

                    ($0.04)


                    $0.58


                    n/m


                    $1.62


                    $2.60


                    (38)









                    Adjusted net income 1,2

                    382


                    331


                    15


                    1,481


                    1,479


                    Adjusted basic earnings per share 1,2

                    $0.74


                    $0.64


                    16


                    $2.88


                    $2.87


                    Adjusted diluted earnings per share 1,2

                    $0.74


                    $0.64


                    16


                    $2.86


                    $2.86










                    Additions to property, plant and equipment

                    604


                    773


                    (22)


                    2,352


                    2,440


                    (4)

                    Cash provided by operating activities

                    1,053


                    950


                    11


                    3,957


                    3,747


                    6

                    Free cash flow 1

                    392


                    274


                    43


                    1,705


                    1,676


                    2

                    Total service revenue 3

                    3,306


                    3,214


                    3


                    13,027


                    12,649


                    3

                    n/m - not meaningful

                    Adjusted operating profit, adjusted operating profit margin, adjusted net income, adjusted basic and diluted earnings per share, and free cash flow are non-GAAP measures and should not be considered substitutes or alternatives for GAAP measures. These are not defined terms under IFRS and do not have standard meanings, so may not be a reliable way to compare us to other companies. See "Non-GAAP Measures" for information about these measures, including how we calculate them.

                    As a result of the IFRS Interpretations Committee's agenda decision relating to IAS 12 Income Taxes, certain amounts have been retrospectively amended. See "Accounting Changes" for more information.

                    As defined. See "Key Performance Indicators".

                    Results of our Reporting Segments

                    WIRELESS

                    Wireless Financial Results





                    Three months ended December 31


                    Twelve months ended December 31

                    (In millions of dollars, except margins)

                    2016


                    2015 1


                    % Chg



                    2016


                    2015 1


                    % Chg










                    Revenue









                    Service revenue

                    1,858


                    1,747


                    6



                    7,258


                    6,902


                    5



                    Equipment revenue

                    200


                    234


                    (15)



                    658


                    749


                    (12)


                    Revenue

                    2,058


                    1,981


                    4



                    7,916


                    7,651


                    3










                    Operating expenses









                    Cost of equipment

                    584


                    569


                    3



                    1,947


                    1,845


                    6



                    Other operating expenses

                    682


                    658


                    4



                    2,684


                    2,567


                    5


                    Operating expenses

                    1,266


                    1,227


                    3



                    4,631


                    4,412


                    5










                    Adjusted operating profit

                    792


                    754


                    5



                    3,285


                    3,239


                    1










                    Adjusted operating profit margin as a % of service revenue

                    42.6%


                    43.2%


                    (0.6 pts)



                    45.3%


                    46.9%


                    (1.6 pts)


                    Additions to property, plant and equipment

                    153


                    235


                    (35)



                    702


                    866


                    (19)


                    The operating results of Mobilicity are included in the Wireless results of operations from the date of acquisition on July 2, 2015.

                    Wireless Subscriber Results 1





                    Three months ended December 31


                    Twelve months ended December 31

                    (In thousands, except churn, postpaid ARPA, and blended ARPU)

                    2016


                    2015


                    Chg



                    2016


                    2015


                    Chg










                    Postpaid









                    Gross additions

                    436


                    365


                    71



                    1,521


                    1,354


                    167



                    Net additions

                    93


                    31


                    62



                    286


                    106


                    180



                    Total postpaid subscribers 2

                    8,557


                    8,271


                    286



                    8,557


                    8,271


                    286



                    Churn (monthly)

                    1.35%


                    1.35%




                    1.23%


                    1.27%


                    (0.04 pts)



                    ARPA (monthly)

                    $119.90


                    $112.07


                    $7.83



                    $117.37


                    $110.74


                    $6.63


                    Prepaid









                    Gross additions

                    172


                    179


                    (7)



                    761


                    677


                    84



                    Net additions

                    38


                    27


                    11



                    111


                    75


                    36



                    Total prepaid subscribers 2,3

                    1,717


                    1,606


                    111



                    1,717


                    1,606


                    111



                    Churn (monthly)

                    2.62%


                    3.17%


                    (0.55 pts)



                    3.32%


                    3.45%


                    (0.13 pts)


                    Blended ARPU (monthly)

                    $60.72


                    $59.16


                    $1.56



                    $60.42


                    $59.71


                    $0.71


                    Subscriber counts, subscriber churn, postpaid ARPA, and blended ARPU are key performance indicators. See "Key Performance Indicators".

                    As at end of period.

                    On July 2, 2015, we acquired approximately 154,000 Wireless prepaid subscribers as a result of our acquisition of Mobilicity, which are not included in the 2015 net additions above.

                    Service revenue
                    The 6% increase in service revenue this quarter was a result of:

                    • larger postpaid and prepaid subscriber bases; and
                    • the continued adoption of customer-friendly Rogers Share Everything plans and the general increase in data usage noted on these types of plans. These plans generate higher postpaid ARPA, bundle in various calling features and long distance, provide the ability to pool and manage data usage across multiple devices, and grant access to our other offerings, such as Roam Like Home, Rogers NHL GameCentre LIVE, Spotify, and Texture by Next Issue.

                    The 7% increase in postpaid ARPA this quarter was the result of the continued adoption of Rogers Share Everything plans relative to the number of subscriber accounts as customers have increasingly utilized the advantages of premium offerings and access their shareable plans with multiple devices on the same account.

                    The 3% increase in blended ARPU this quarter was a result of:

                    • increased service revenue as discussed above; partially offset by
                    • the general increase in prepaid net additions over the past year.

                    We believe the increases in gross and net additions to our postpaid subscriber base and the stable postpaid churn this quarter were results of our strategic focus on enhancing the customer experience by providing higher-value offerings, such as our Share Everything plans, improving our customer service, and continually increasing the quality of our network.

                    Equipment revenue
                    The 15% decrease in equipment revenue this quarter was a result of:

                    • an 11% decrease in device upgrades by existing subscribers; and
                    • larger average subsidies given to customers who purchased devices; partially offset by
                    • higher postpaid gross additions.

                    Operating expenses
                    Cost of equipment
                    The 3% increase in the cost of equipment this quarter was a result of:

                    • a shift in the product mix of device sales towards higher-cost smartphones; and
                    • higher postpaid gross additions; partially offset by
                    • the decrease in device upgrades by existing subscribers, as discussed above.

                    Other operating expenses

                    The 4% increase in other operating expenses this quarter was a result of:

                    • higher commissions, primarily as a result of our higher postpaid gross additions; and
                    • higher marketing and advertising costs.

                    Adjusted operating profit
                    The 5% increase in adjusted operating profit this quarter was a result of the revenue and expense changes discussed above.

                    CABLE

                    Cable Financial Results





                    Three months ended December 31


                    Twelve months ended December 31

                    (In millions of dollars, except margins)

                    2016


                    2015


                    % Chg



                    2016


                    2015


                    % Chg










                    Revenue









                    Internet

                    378


                    348


                    9



                    1,495


                    1,343


                    11



                    Television

                    386


                    403


                    (4)



                    1,562


                    1,669


                    (6)



                    Phone

                    93


                    102


                    (9)



                    386


                    445


                    (13)



                    Service revenue

                    857


                    853




                    3,443


                    3,457




                    Equipment revenue

                    1


                    2


                    (50)



                    6


                    8


                    (25)


                    Revenue

                    858


                    855




                    3,449


                    3,465











                    Operating expenses









                    Cost of equipment

                    1


                    2


                    (50)



                    3


                    4


                    (25)



                    Other operating expenses

                    422


                    427


                    (1)



                    1,772


                    1,803


                    (2)


                    Operating expenses

                    423


                    429


                    (1)



                    1,775


                    1,807


                    (2)










                    Adjusted operating profit

                    435


                    426


                    2



                    1,674


                    1,658


                    1










                    Adjusted operating profit margin

                    50.7%


                    49.8%


                    0.9 pts



                    48.5%


                    47.8%


                    0.7 pts


                    Additions to property, plant and equipment

                    284


                    308


                    (8)



                    1,085


                    1,030


                    5


                    Cable Subscriber Results 1





                    Three months ended December 31


                    Twelve months ended December 31

                    (In thousands)

                    2016


                    2015


                    Chg



                    2016


                    2015


                    Chg










                    Internet









                    Net additions

                    30


                    16


                    14



                    97


                    37


                    60



                    Total Internet subscribers 2

                    2,145


                    2,048


                    97



                    2,145


                    2,048


                    97


                    Television









                    Net losses

                    (13)


                    (24)


                    11



                    (76)


                    (128)


                    52



                    Total television subscribers 2

                    1,820


                    1,896


                    (76)



                    1,820


                    1,896


                    (76)


                    Phone









                    Net additions (losses)

                    4


                    (15)


                    19



                    4


                    (60)


                    64



                    Total phone subscribers 2

                    1,094


                    1,090


                    4



                    1,094


                    1,090


                    4










                    Cable homes passed 2

                    4,241


                    4,153


                    88



                    4,241


                    4,153


                    88


                    Total service units 3









                    Net additions (losses)

                    21


                    (23)


                    44



                    25


                    (151)


                    176



                    Total service units 2

                    5,059


                    5,034


                    25



                    5,059


                    5,034


                    25


                    Subscriber counts are key performance indicators. See "Key Performance Indicators".

                    As at end of period.

                    Includes Internet, Television, and Phone subscribers.

                    Revenue
                    The marginal increase in revenue this quarter was a result of:

                    • a higher subscriber base for our Internet products; and
                    • the net impact of pricing changes implemented over the past year; partially offset by
                    • Television subscriber losses over the past year.

                    Internet revenue
                    The 9% increase in Internet revenue this quarter was a result of:

                    • a larger Internet subscriber base;
                    • general movement of customers to higher speed and usage tiers of our Ignite broadband Internet offerings; and
                    • the net impact of changes in Internet service pricing; partially offset by
                    • lower wholesale revenue as a result of a CRTC decision that reduced access service rates.

                    Television revenue
                    The 4% decrease in Television revenue this quarter was a result of:

                    • the decline in Television subscribers over the past year; and
                    • more promotional pricing provided to subscribers; partially offset by
                    • the impact of Television service pricing changes implemented over the past year.

                    Phone revenue
                    The 9% decrease in Phone revenue this quarter was a result of:

                    • the impact of pricing packages, primarily related to Ignite multi-product bundles; partially offset by
                    • less promotional pricing provided to subscribers as a result of the pricing packages described above.

                    Operating expenses
                    The 1% decrease in operating expenses this quarter was a result of:

                    • relative shifts in product mix to higher-margin Internet from conventional Television broadcasting; and
                    • lower service and programming costs.

                    Adjusted operating profit
                    The 2% increase in adjusted operating profit this quarter was a result of the revenue and expense changes discussed above.

                    BUSINESS SOLUTIONS

                    Business Solutions Financial Results





                    Three months ended December 31


                    Twelve months ended December 31

                    (In millions of dollars, except margins)

                    2016


                    2015 1


                    % Chg



                    2016


                    2015 1


                    % Chg










                    Revenue









                    Next generation

                    77


                    74


                    4



                    307


                    288


                    7



                    Legacy

                    17


                    20


                    (15)



                    71


                    85


                    (16)



                    Service revenue

                    94


                    94




                    378


                    373


                    1



                    Equipment revenue

                    2


                    1


                    100



                    6


                    4


                    50


                    Revenue

                    96


                    95


                    1



                    384


                    377


                    2










                    Operating expenses

                    66


                    65


                    2



                    261


                    261











                    Adjusted operating profit

                    30


                    30




                    123


                    116


                    6










                    Adjusted operating profit margin

                    31.3%


                    31.6%


                    (0.3 pts)



                    32.0%


                    30.8%


                    1.2 pts


                    Additions to property, plant and equipment

                    37


                    65


                    (43)



                    146


                    187


                    (22)


                    The operating results of Internetworking Atlantic Inc. are included in the Business Solutions results of operations from the date of acquisition on November 30, 2015.

                    Revenue
                    The stable service revenue this quarter was a result of the continued execution of our plan to grow higher-margin, next generation on-net and near-net IP-based services revenue, offset by the continued decline in our legacy and off-net voice business. We expect this trend to continue as we focus on migrating customers to more advanced, cost-effective IP-based services and solutions.

                    Next generation services, which include our data centre operations, represented 82% of total service revenue in the quarter (2015 - 79%).

                    Operating expenses
                    Operating expenses this quarter were in line with fourth quarter operating expenses of 2015.

                    Adjusted operating profit
                    Adjusted operating profit was stable this quarter as a result of the marginal increases in revenue and operating expenses this quarter.

                    MEDIA

                    Media Financial Results





                    Three months ended December 31


                    Twelve months ended December 31

                    (In millions of dollars, except margins)

                    2016


                    2015


                    % Chg



                    2016


                    2015


                    % Chg










                    Revenue

                    550


                    560


                    (2)



                    2,146


                    2,079


                    3


                    Operating expenses

                    501


                    504


                    (1)



                    1,977


                    1,907


                    4










                    Adjusted operating profit

                    49


                    56


                    (13)



                    169


                    172


                    (2)










                    Adjusted operating profit margin

                    8.9%


                    10.0%


                    (1.1 pts)



                    7.9%


                    8.3%


                    (0.4 pts)


                    Additions to property, plant and equipment

                    19


                    28


                    (32)



                    62


                    60


                    3


                    Revenue
                    The 2% decrease in revenue this quarter was a result of:

                    • fewer postseason Toronto Blue Jays games compared to 2015;
                    • lower overall advertising revenue; and
                    • lower circulation revenue within publishing, partly due to the sale of certain brands; partially offset by
                    • higher sales at TSC.

                    Operating expenses
                    The 1% decrease in operating expenses this quarter was a result of:

                    • lower publishing costs due to revenue softness and the strategic shift related to magazine content announced earlier in the year; partially offset by
                    • higher TSC merchandise costs; and
                    • higher digital media costs.

                    Adjusted operating profit
                    The 13% decrease in adjusted operating profit this quarter was primarily a result of the revenue and expense changes discussed above.

                    ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT





                    Three months ended December 31


                    Twelve months ended December 31

                    (In millions of dollars, except capital intensity)

                    2016


                    2015


                    % Chg



                    2016


                    2015


                    % Chg










                    Additions to property, plant and equipment









                    Wireless

                    153


                    235


                    (35)



                    702


                    866


                    (19)



                    Cable

                    284


                    308


                    (8)



                    1,085


                    1,030


                    5



                    Business Solutions

                    37


                    65


                    (43)



                    146


                    187


                    (22)



                    Media

                    19


                    28


                    (32)



                    62


                    60


                    3



                    Corporate

                    111


                    137


                    (19)



                    357


                    297


                    20










                    Total additions to property, plant and equipment 1

                    604


                    773


                    (22)



                    2,352


                    2,440


                    (4)










                    Capital intensity 2

                    17.2%


                    22.4%


                    (5.2 pts)



                    17.2%


                    18.2%


                    (1.0 pts)


                    Additions to property, plant and equipment do not include expenditures for spectrum licences.

                    As defined. See "Key Performance Indicators".

                    Wireless
                    The decrease in additions to property, plant and equipment in Wireless this quarter was primarily a result of higher LTE network investments incurred in the fourth quarter of 2015 relative to 2016 to enhance network coverage and the quality of our network. Deployment of our 700 MHz LTE network has reached 91% of Canada's population as at December 31, 2016 (December 31, 2015 - 78%). The 700 MHz LTE network offers improved signal quality in basements, elevators, and buildings with thick concrete walls. Deployment of our overall LTE network has reached approximately 95% of Canada's population as at December 31, 2016 (December 31, 2015 - 93%).

                    Cable
                    The decrease in additions to property, plant and equipment in Cable this quarter was primarily a result of higher investment in information technology infrastructure incurred in the fourth quarter of 2015 relative to 2016 to improve the capacity of our Internet platform to deliver gigabit Internet speeds. We believe this has allowed us to keep ahead of customer data demands, which allowed us to deliver Ignite Gigabit Internet across our Cable footprint by the end of 2016.

                    Business Solutions
                    The decrease in additions to property, plant and equipment in Business Solutions this quarter was a result of higher investments in our data centres in the fourth quarter of 2015 relative to 2016.

                    Media
                    The decrease in additions to property, plant and equipment in Media this quarter was a result of higher investments incurred in the fourth quarter of 2015 relative to 2016 for conventional television, digital assets, and at TSC.

                    Corporate
                    The decrease in additions to property, plant and equipment in Corporate this quarter was a result of higher investments incurred in the fourth quarter of 2015 relative to 2016 in relation to premise improvements at our various offices, as well as higher information technology investments.

                    Capital intensity
                    Capital intensity decreased this quarter as a result of lower additions to property, plant and equipment in all our segments as discussed above, partially offset by higher revenue.

                    Review of Consolidated Performance

                    This section discusses our consolidated net income and other expenses that do not form part of the segment discussions above.





                    Three months ended December 31


                    Twelve months ended December 31

                    (In millions of dollars)

                    2016


                    2015


                    % Chg



                    2016


                    2015


                    % Chg










                    Adjusted operating profit 1

                    1,259


                    1,226


                    3



                    5,092


                    5,032


                    1


                    Deduct (add):









                    Stock-based compensation

                    16


                    16




                    61


                    55


                    11



                    Depreciation and amortization

                    555


                    580


                    (4)



                    2,276


                    2,277




                    Impairment of assets and related onerous contract charges

                    484



                    n/m



                    484



                    n/m



                    Restructuring, acquisition and other

                    34


                    23


                    48



                    160


                    111


                    44



                    Finance costs

                    188


                    192


                    (2)



                    761


                    774


                    (2)



                    Other (income) expense 2

                    (4)


                    4


                    n/m



                    191


                    (4)


                    n/m



                    Income tax (recovery) expense 2

                    (5)


                    112


                    n/m



                    324


                    477


                    (32)










                    Net (loss) income 2

                    (9)


                    299


                    n/m



                    835


                    1,342


                    (38)


                    Adjusted operating profit is a non-GAAP measure and should not be considered a substitute or alternative for GAAP measures. It is not a defined term under IFRS and does not have a standard meaning, so may not be a reliable way to compare us to other companies. See "Non-GAAP Measures" for information about this measure, including how we calculate it.

                    As a result of the IFRS Interpretations Committee's agenda decision relating to IAS 12 Income Taxes, certain amounts have been retrospectively amended.  See "Accounting Changes" for more information.

                    Stock-based compensation
                    Our stock-based compensation, which includes stock options (with stock appreciation rights), restricted share units, and deferred share units, is generally driven by:

                    • the vesting of stock options and share units; and
                    • changes in the market price of RCI Class B shares; offset by
                    • the impact of certain equity derivative instruments designed to hedge a portion of the stock price appreciation risk for our stock-based compensation programs. See "Financial Risk Management" for more information about equity derivatives.




                    Three months ended December 31


                    Twelve months ended December 31

                    (In millions of dollars)

                    2016


                    2015



                    2016


                    2015








                    Impact of vesting

                    19


                    14



                    70


                    57


                    Impact of change in price

                    (22)


                    14



                    24


                    20


                    Equity derivatives, net of interest receipt

                    19


                    (12)



                    (33)


                    (22)








                    Total stock-based compensation

                    16


                    16



                    61


                    55


                    Depreciation and amortization





                    Three months ended December 31


                    Twelve months ended December 31

                    (In millions of dollars)

                    2016


                    2015


                    % Chg



                    2016


                    2015


                    % Chg










                    Depreciation

                    538


                    541


                    (1)



                    2,183


                    2,117


                    3


                    Amortization

                    17


                    39


                    (56)



                    93


                    160


                    (42)










                    Total depreciation and amortization

                    555


                    580


                    (4)



                    2,276


                    2,277



                    Total depreciation and amortization decreased this quarter as a result of the effect of ceasing amortization on certain brand name assets in 2016.

                    Impairment of assets and related onerous contract charges
                    During the quarter, we recorded a total charge of $484 million for asset impairment and onerous contracts related to our decision to discontinue developing our IPTV product as a result of our decision to develop a long-term relationship with Comcast and deploy their X1 IP-based video platform. See "Strategic Update" for more information. The onerous contracts charges primarily relate to the remaining contractual liabilities for the development of our IPTV product based on our best estimate of the expected future costs.

                    Restructuring, acquisition and other
                    This quarter, we incurred $34 million (2015 - $23 million) in restructuring, acquisition and other expenses. The costs this quarter were primarily a result of severance costs associated with the targeted restructuring of our employee base and costs related to integrating certain businesses.

                    Finance costs





                    Three months ended December 31


                    Twelve months ended December 31

                    (In millions of dollars)

                    2016


                    2015


                    % Chg



                    2016


                    2015


                    % Chg










                    Interest on borrowings 1

                    185


                    190


                    (3)



                    758


                    761



                    Interest on post-employment benefits liability

                    2


                    3


                    (33)



                    9


                    11


                    (18)


                    Loss on repayment of long-term debt






                    7


                    (100)


                    Loss on foreign exchange

                    32


                    2


                    n/m



                    13


                    11


                    18


                    Change in fair value of derivatives

                    (34)


                    (1)


                    n/m



                    (16)


                    3


                    n/m


                    Capitalized interest

                    (3)


                    (5)


                    (40)



                    (18)


                    (29)


                    (38)


                    Other

                    6


                    3


                    100



                    15


                    10


                    50










                    Total finance costs

                    188


                    192


                    (2)



                    761


                    774


                    (2)


                    Interest on borrowings includes interest on long-term debt and on short-term borrowings associated with our accounts receivable securitization program.

                    Interest on borrowings
                    Interest on borrowings decreased this quarter as a result of a decrease in the principal of our outstanding debt and lower interest rates on our bank credit facilities. See "Managing our Liquidity and Financial Resources" and "Financial Condition" for more information about our debt and related finance costs.

                    Income tax (recovery) expense 1





                    Three months ended December 31


                    Twelve months ended December 31

                    (In millions of dollars, except tax rates)

                    2016

                    2015


                    2016

                    2015







                    Statutory income tax rate

                    26.6

                    %

                    26.5

                    %


                    26.6

                    %

                    26.5

                    %

                    (Loss) income before income tax (recovery) expense

                    (14)


                    411



                    1,159


                    1,819


                    Computed income tax (recovery) expense

                    (4)


                    109



                    308


                    482


                    Increase (decrease) in income tax (recovery) expense resulting from:







                    Non-(taxable) deductible stock-based compensation

                    (2)


                    3



                    5


                    5



                    Non-deductible (taxable) portion of equity losses

                    2


                    (2)



                    18


                    11



                    Income tax adjustment, legislative tax change




                    3


                    6



                    Non-taxable gain on acquisition





                    (20)



                    Non-taxable portion of capital gain




                    (7)




                    Other items

                    (1)


                    2



                    (3)


                    (7)








                    Total income tax (recovery) expense

                    (5)


                    112



                    324


                    477








                    Effective income tax rate

                    35.7

                    %

                    27.3

                    %


                    28.0

                    %

                    26.2

                    %

                    Cash income taxes paid (received)

                    81


                    (6)



                    295


                    184


                    1 As a result of the IFRS Interpretations Committee's agenda decision relating to IAS 12 Income Taxes, certain amounts have been retrospectively amended. See "Accounting Changes" for more information.

                    Cash income taxes paid increased this quarter as a result of applying non-capital losses from the Mobilicity transaction to offset our 2015 tax liability.

                    Net (loss) income 1










                    Three months ended December 31


                    Twelve months ended December 31

                    (In millions of dollars, except per share amounts)

                    2016

                    2015

                    % Chg


                    2016

                    2015

                    % Chg









                    Net (loss) income

                    (9)

                    299

                    n/m


                    835

                    1,342

                    (38)

                    Basic (loss) earnings per share

                    ($0.02)

                    $0.58

                    n/m


                    $1.62

                    $2.61

                    (38)

                    Diluted (loss) earnings per share

                    ($0.04)

                    $0.58

                    n/m


                    $1.62

                    $2.60

                    (38)









                    As a result of the IFRS Interpretations Committee's agenda decision relating to IAS 12 Income Taxes, certain amounts have been retrospectively amended. See "Accounting Changes" for more information.

                    Adjusted net income
                    We calculate adjusted net income from adjusted operating profit as follows:





                    Three months ended December 31


                    Twelve months ended December 31

                    (In millions of dollars, except per share amounts)

                    2016


                    2015


                    % Chg



                    2016


                    2015


                    % Chg










                    Adjusted operating profit 1

                    1,259


                    1,226


                    3



                    5,092


                    5,032


                    1


                    Deduct:









                    Depreciation and amortization

                    555


                    580


                    (4)



                    2,276


                    2,277




                    Finance costs 2

                    188


                    192


                    (2)



                    761


                    767


                    (1)



                    Other (income) expense 3,4

                    (4)


                    4


                    n/m



                    40


                    (2)


                    n/m



                    Income tax expense 4,5

                    138


                    119


                    16



                    534


                    511


                    5










                    Adjusted net income 1,4

                    382


                    331


                    15



                    1,481


                    1,479











                    Adjusted basic earnings per share 1,4

                    $0.74


                    $0.64


                    16



                    $2.88


                    $2.87



                    Adjusted diluted earnings per share 1,4

                    $0.74


                    $0.64


                    16



                    $2.86


                    $2.86



                    Adjusted operating profit, adjusted net income, and adjusted basic and diluted earnings per share are non-GAAP measures and should not be considered substitutes or alternatives for GAAP measures. These are not defined terms under IFRS and do not have standard meanings, so may not be a reliable way to compare us to other companies. See "Non-GAAP Measures" for information about these measures, including how we calculate them.

                    Finance costs exclude a $7 million loss on repayment of long-term debt for the twelve months ended December 31, 2015.

                    Other expense for the twelve months ended December 31, 2016 excludes an $11 million net loss on divestitures pertaining to investments and a $140 million loss on the wind down of our shomi joint venture. Other income for the twelve months ended December 31, 2015 excludes a $74 million gain on acquisition of Mobilicity and a $72 million loss related to our share of an obligation to purchase at fair value the non-controlling interest in one of our joint ventures.

                    As a result of the IFRS Interpretations Committee's agenda decision relating to IAS 12 Income Taxes, certain amounts have been retrospectively amended. See "Accounting Changes" for more information.

                    Income tax expense excludes a $143 million recovery (2015 - $7 million recovery) for the quarter and a $213 million recovery (2015 - $40 million recovery) for the year to date related to the income tax impact for adjusted items. Income tax expense also excludes expenses as a result of legislative tax changes of $3 million (2015 - $6 million) for the year to date.

                    Managing our Liquidity and Financial Resources

                    Operating, investing, and financing activities





                    Three months ended December 31


                    Twelve months ended December 31

                    (In millions of dollars)

                    2016


                    2015



                    2016


                    2015








                    Cash provided by operating activities before changes in non-cash
                    working capital items, income taxes paid, and interest paid

                    1,276


                    1,264



                    4,994


                    5,004



                    Change in non-cash operating working capital items

                    (18)


                    (187)



                    14


                    (302)


                    Cash provided by operating activities before income taxes paid
                    and interest paid

                    1,258


                    1,077



                    5,008


                    4,702



                    Income taxes (paid) received

                    (81)


                    6



                    (295)


                    (184)



                    Interest paid

                    (124)


                    (133)



                    (756)


                    (771)








                    Cash provided by operating activities

                    1,053


                    950



                    3,957


                    3,747








                    Investing activities:







                    Additions to property, plant and equipment

                    (604)


                    (773)



                    (2,352)


                    (2,440)



                    Additions to program rights

                    (3)


                    (27)



                    (46)


                    (64)



                    Changes in non-cash working capital related to property, plant and
                    equipment and intangible assets

                    44


                    167



                    (103)


                    (116)



                    Acquisitions and other strategic transactions, net of cash acquired


                    (5)




                    (1,077)



                    Other

                    49


                    (32)



                    45


                    (70)








                    Cash used in investing activities

                    (514)


                    (670)



                    (2,456)


                    (3,767)








                    Financing activities:











                    Net repayments on short-term borrowings

                    (250)


                    (59)




                    (42)



                    Net (repayment) issuance of long-term debt

                    (57)


                    82



                    (538)


                    754



                    Net (payments) proceeds on settlement of debt derivatives and
                    forward contracts

                    (28)


                    (25)



                    (45)


                    129



                    Transaction costs incurred

                    (17)


                    (9)



                    (17)


                    (9)



                    Dividends paid

                    (247)


                    (247)



                    (988)


                    (977)



                    Other




                    5









                    Cash used in financing activities

                    (599)


                    (258)



                    (1,583)


                    (145)








                    Change in cash and cash equivalents

                    (60)


                    22



                    (82)


                    (165)


                    (Bank advances) cash and cash equivalents, beginning of period

                    (11)


                    (11)



                    11


                    176








                    (Bank advances) cash and cash equivalents, end of period

                    (71)


                    11



                    (71)


                    11


                    Operating activities
                    The 11% increase in cash provided by operating activities this quarter was primarily a result of a lower net investment in non-cash working capital, partially offset by higher cash income taxes as a result of the timing of installment payments.

                    Investing activities

                    Additions to property, plant and equipment
                    We spent $604 million this quarter on additions to property, plant and equipment before changes in non-cash working capital items, which was lower than the same period in 2015. See "Additions to Property, Plant and Equipment" for more information.

                    Financing activities

                    Accounts receivable securitization
                    Below is a summary of the activity relating to our accounts receivable securitization program for the quarter and year to date:






                    Three months ended December 31


                    Twelve months ended December 31

                    (In millions of dollars)

                    2016


                    2015



                    2016


                    2015








                    Short-term borrowings











                    Proceeds received on short-term borrowings


                    22



                    295


                    294



                    Repayment of short-term borrowings

                    (250)


                    (81)



                    (295)


                    (336)








                    Net (repayments) proceeds received on short-term borrowings

                    (250)


                    (59)




                    (42)


                    As at December 31, 2016, our total funding under the securitization program was $800 million (December 31, 2015 - $800 million).

                    In July 2016, we amended the terms of the accounts receivable securitization program to, among other things, extend the expiry date from January 1, 2018 to January 1, 2019.

                    Bank and letter of credit facilities
                    Below is a summary of the activity relating to our revolving and non-revolving bank credit facilities for the quarter and year to date:





                    Three months ended
                    December 31, 2016


                    Twelve months ended
                    December 31, 2016


                    Notional


                    Exchange


                    Notional


                    Notional


                    Exchange


                    Notional

                    (In millions of dollars, except exchange rates)

                    (US$)


                    rate


                    (Cdn$)


                    (US$)


                    rate


                    (Cdn$)








                    Issuance of US dollar long-term debt

                    303


                    1.31


                    398


                    2,188


                    1.31


                    2,877

                    Issuance of Canadian dollar long-term debt



                    325




                    1,140








                    Total long-term debt issued



                    723




                    4,017








                    Repayment of US dollar long-term debt

                    (914)


                    1.34


                    (1,226)


                    (2,038)


                    1.32


                    (2,686)

                    Repayment of Canadian dollar long-term debt



                    (225)




                    (1,540)








                    Total long-term debt repaid



                    (1,451)




                    (4,226)









                    Three months ended
                    December 31, 2015


                    Twelve months ended
                    December 31, 2015


                    Notional


                    Exchange


                    Notional


                    Notional


                    Exchange


                    Notional

                    (In millions of dollars, except exchange rates)

                    (US$)


                    rate


                    (Cdn$)


                    (US$)


                    rate


                    (Cdn$)












                    Issuance of Canadian dollar long-term debt





                    1,190






                    6,025












                    Repayment of Canadian dollar long-term debt





                    (2,440)






                    (5,525)

                    As at December 31, 2016, we had $301 million ($100 million and US$150 million) of borrowings outstanding under our revolving and non-revolving credit facilities (December 31, 2015 - $500 million). Certain funds were borrowed in US dollars to take advantage of a favourable interest rate spread; we have entered into debt derivatives related to these borrowings to convert all the interest and principal payment obligations to Canadian dollars. See "Financial Risk Management" for more information.

                    As at December 31, 2016, we had available liquidity under our bank credit facilities of $2.4 billion, as illustrated below. Each of these facilities is unsecured and guaranteed by RCCI and ranks equally with all of our senior notes and debentures.








                    As at
                    December 31


                    As at

                    December 31

                    (In millions of dollars)


                    2016


                    2015





                    Total revolving & non-revolving credit and letter of credit facilities


                    2,860


                    3,567

                    Add (deduct):






                    Outstanding letters of credit


                    (68)


                    (68)


                    Borrowings


                    (301)


                    (500)


                    Bank advances


                    (71)






                    Available liquidity - bank credit facilities


                    2,420


                    2,999

                    Effective April 1, 2016, we amended our $2.5 billion revolving credit facility to, among other things, extend the maturity date from July 2019 to September 2020. At the same time, we also amended the $1.0 billion non-revolving credit facility to, among other things, extend the maturity date from April 2017 to April 2018. As a result of repayments made during the quarter, we reduced the amount of borrowings available under our non-revolving credit facility from $1.0 billion to $301 million.

                    Senior notes
                    The table below provides a summary of the issuance of our senior notes for the three months ended December 31, 2016 and 2015.




                    (In millions of dollars, except interest rates and discounts)



                    Date Issued



                    Principal
                    amount


                    Due date

                    Interest rate


                    Discount/
                    premium at
                    issuance


                    Total gross
                    proceeds 1
                    (Cdn$)


                    Transaction
                    costs and
                    discounts 2
                    (Cdn$)










                    2016 issuances














                    November 4, 2016


                    US

                    500


                    2026

                    2.900

                    %

                    98.354

                    %

                    671


                    17










                    2015 issuances














                    December 8, 2015


                    US

                    700


                    2025

                    3.625

                    %

                    99.252

                    %

                    937




                    December 8, 2015


                    US

                    300


                    2044

                    5.000

                    %

                    101.700

                    %

                    401












                    Total for 2015







                    1,338


                    13

                    Gross proceeds before transaction costs and discounts.

                    Transaction costs and discounts are included as deferred transaction costs and discounts in the carrying value of the long-term debt, and recognized in net income using the effective interest method.

                    Concurrent with the 2016 and 2015 issuances, we entered into debt derivatives to hedge the foreign currency risk associated with the principal and interest components of the US dollar-denominated senior notes.

                    The tables below provide a summary of the repayment of our senior notes for the three and twelve months ended December 31, 2016 and 2015.








                    Three months ended
                    December 31, 2016


                    Twelve months ended
                    December 31, 2016

                    (In millions of dollars)

                    Maturity date


                    Notional
                    amount (US$)


                    Notional
                    amount (Cdn$)


                    Notional
                    amount (US$)


                    Notional
                    amount (Cdn$)







                    May 26, 2016





                    1,000












                    Three months ended
                    December 31, 2015


                    Twelve months ended
                    December 31, 2015

                    (In millions of dollars)

                    Maturity date


                    Notional
                    amount (US$)


                    Notional
                    amount (Cdn$)


                    Notional
                    amount (US$)


                    Notional
                    amount (Cdn$)







                    March 15, 2015




                    550


                    702

                    March 15, 2015




                    280


                    357







                    Total




                    830


                    1,059

                    Dividends
                    The table below shows when dividends were declared and paid on both classes of our shares.









                    Declaration date


                    Record date


                    Payment date

                    Dividend per

                    share (dollars)


                    Dividends paid

                    (in millions of dollars)








                    January 27, 2016


                    March 13, 2016


                    April 1, 2016

                    0.48


                    247

                    April 18, 2016


                    June 12, 2016


                    July 4, 2016

                    0.48


                    247

                    August 11, 2016


                    September 11, 2016


                    October 3, 2016

                    0.48


                    247

                    October 20, 2016


                    December 12, 2016


                    January 3, 2017

                    0.48


                    247








                    January 28, 2015


                    March 13, 2015


                    April 1, 2015

                    0.48


                    248

                    April 21, 2015


                    June 12, 2015


                    July 2, 2015

                    0.48


                    247

                    August 13, 2015


                    September 11, 2015


                    October 1, 2015

                    0.48


                    247

                    October 22, 2015


                    December 11, 2015


                    January 4, 2016

                    0.48


                    247

                    Free cash flow






                    Three months ended December 31


                    Twelve months ended December 31

                    (In millions of dollars)

                    2016


                    2015


                    % Chg



                    2016


                    2015


                    % Chg










                    Adjusted operating profit 1

                    1,259


                    1,226


                    3



                    5,092


                    5,032


                    1


                    Deduct (add):















                    Additions to property, plant and equipment 2

                    604


                    773


                    (22)



                    2,352


                    2,440


                    (4)



                    Interest on borrowings, net of capitalized interest

                    182


                    185


                    (2)



                    740


                    732


                    1



                    Cash income taxes 3

                    81


                    (6)


                    n/m



                    295


                    184


                    60










                    Free cash flow 1

                    392


                    274


                    43



                    1,705


                    1,676


                    2


                    Adjusted operating profit and free cash flow are non-GAAP measures and should not be considered substitutes or alternatives for GAAP measures. These are not defined terms under IFRS and do not have standard meanings, so may not be a reliable way to compare us to other companies. See "Non-GAAP Measures" for information about these measures, including how we calculate them.

                    Additions to property, plant and equipment do not include expenditures for spectrum licences.

                    Cash income taxes are net of refunds received.

                    The 43% increase in free cash flow this quarter was a result of higher adjusted operating profit and lower additions to property, plant and equipment, partially offset by higher cash income taxes as a result of applying non-capital losses from the Mobilicity transaction during the same period in 2015.

                    Financial Condition








                    As at
                    December 31


                    As at
                    December 31

                    (In millions of dollars)


                    2016


                    2015





                    Cash and cash equivalents



                    11

                    Bank credit facilities


                    2,420


                    3,000

                    Accounts receivable securitization program


                    250


                    250





                    Total available liquidity


                    2,670


                    3,261

                    In addition to the sources of available liquidity noted above, we held $1,047 million of marketable securities in publicly traded companies as at December 31, 2016 (December 31, 2015 - $966 million).

                    Our borrowings had a weighted average cost of financing of 4.72% as at December 31, 2016 (December 31, 2015 - 4.82%) and a weighted average term to maturity of 10.6 years (December 31, 2015 - 10.8 years). This comparative decline in our weighted average interest rate reflects the combined effects of:

                    • the issuance of senior notes in November 2016 at comparatively lower interest rates; and
                    • the repayment of senior notes in May 2016 that were issued at comparatively higher interest rates.

                    As at December 31, 2016, the credit ratings on RCI's outstanding senior notes and debentures were as follows:

                    • Moody's Ratings Services: Baa1 with a stable outlook (unchanged in the quarter);
                    • Standard and Poor's Ratings Services: BBB+ with a stable outlook (unchanged in the quarter); and
                    • Fitch Ratings: BBB+ with a stable outlook (unchanged in the quarter).

                    Financial Risk Management

                    This section should be read in conjunction with "Financial Risk Management" in our 2015 Annual MD&A. We use derivative instruments to manage financial risks related to our business activities. We only use derivatives to manage risk and not for speculative purposes. We also manage our exposure to both fixed and fluctuating interest rates and had fixed the interest rate on 91.2% of our outstanding debt, including short-term borrowings, as at December 31, 2016 (December 31, 2015 - 90.3%).

                    Debt derivatives
                    We entered into the following new debt derivatives during the three and twelve months ended December 31, 2016 and 2015 in conjunction with the issuance of our senior notes:




                    (In millions of dollars, except for coupon and interest rates)





                    US$


                    Hedging effect

                    Effective date

                    Principal/notional
                    amount (US$)


                    Maturity date

                    Coupon rate



                    Fixed hedged Cdn$
                    interest rate 1


                    Equivalent Cdn$








                    2016 issuances











                    November 4, 2016

                    500


                    2026

                    2.900

                    %


                    2.834

                    %

                    671








                    2015 issuances











                    December 8, 2015

                    700


                    2025

                    3.625

                    %


                    3.566

                    %

                    937


                    December 8, 2015

                    300


                    2044

                    5.000

                    %


                    5.145

                    %

                    401








                    Total for 2015

                    1,000






                    1,338

                    1 Converting from a fixed US$ coupon rate to a weighted average Cdn$ fixed rate.

                    During the quarter, we entered into debt derivatives related to our credit facility borrowings as a result of a favourable interest rate spread obtained from borrowing funds in US dollars. We used these derivatives to offset the foreign exchange and interest rate risk on our US dollar-denominated credit facility borrowings. As a result of the short-term nature of these debt derivatives related to our credit facility borrowings, we have not designated them as hedges for accounting purposes.

                    This quarter and year to date, we entered into and settled debt derivatives related to our credit facility borrowings as follows:






                    Three months ended
                    December 31, 2016



                    Twelve months ended
                    December 31, 2016

                    (In millions of dollars, except exchange rates)

                    Notional

                     (US$)


                    Exchange
                    rate


                    Notional
                    (Cdn$)



                    Notional

                    (US$)


                    Exchange
                    rate


                    Notional
                    (Cdn$)









                    Debt derivatives entered

                    1,947


                    1.33


                    2,583



                    8,683


                    1.31


                    11,360

                    Debt derivatives settled

                    2,558


                    1.32


                    3,385



                    8,533


                    1.31


                    11,159









                    Net cash received



                    25





                    8

                    We did not enter into any debt derivatives related to our credit facility borrowings during the three and twelve months ended December 31, 2015. See "Mark-to-market value" for more information about our debt derivatives.

                    Bond forwards
                    We did not enter into any new bond forwards this quarter.

                    On November 4, 2016, we exercised a $500 million notional bond forward due January 4, 2017 in relation to the issuance of the US$500 million senior notes due 2026 and paid $53 million to settle the derivative. The amount paid represents the fair value of the bond forward at the time of settlement and will be recycled into finance costs from the hedging reserve using the effective interest rate method over the life of the US$500 million senior notes due 2026.

                    See "Mark-to-market value" for more information about our bond forwards.

                    Expenditure derivatives
                    As at December 31, 2016, our outstanding expenditure derivatives had terms to maturity ranging from January 2017 to December 2018 at an average exchange rate of $1.32/US$ (December 31, 2015 - January 2016 to December 2017 at an average exchange rate of $1.24/US$). Our outstanding expenditure derivatives maturing in 2017 are hedged at an average exchange rate of $1.33/US$.

                    Below is a summary of the activity relating to our expenditure derivatives for the quarter and year to date.





                    Three months ended
                    December 31, 2016


                    Twelve months ended
                    December 31, 2016

                    (In millions of dollars, except exchange rates)

                    Notional
                    (US$)


                    Exchange
                    rate


                    Notional
                    (Cdn$)


                    Notional
                    (US$)


                    Exchange
                    rate


                    Notional
                    (Cdn$)








                    Expenditure derivatives entered

                    240


                    1.32


                    316


                    990


                    1.33


                    1,318

                    Expenditure derivatives settled

                    210


                    1.21


                    255


                    840


                    1.22


                    1,025





                    Three months ended
                    December 31, 2015


                    Twelve months ended
                    December 31, 2015

                    (In millions of dollars, except exchange rates)

                    Notional
                    (US$)


                    Exchange
                    rate


                    Notional
                    (Cdn$)


                    Notional
                    (US$)


                    Exchange
                    rate


                    Notional
                    (Cdn$)








                    Expenditure derivatives entered

                    300


                    1.30


                    390


                    990


                    1.28


                    1,266

                    Expenditure derivatives settled

                    225


                    1.12


                    252


                    810


                    1.11


                    902

                    See "Mark-to-market value" for more information about our expenditure derivatives.

                    Equity derivatives
                    As at December 31, 2016, we had equity derivatives for 5.4 million (December 31, 2015 - 5.7 million) RCI Class B shares with a weighted average price of $50.30 (December 31, 2015 - $50.37).

                    In August 2016, we settled 0.3 million equity derivatives at a weighted average price of $58.16 as a result of a reduction in the number of share-based compensation units outstanding.

                    In April 2016, we executed extension agreements for each of our equity derivative contracts under substantially the same terms and conditions with revised expiry dates to April 2017 (from April 2016).

                    See "Mark-to-market value" for more information about our equity derivatives.

                    Mark-to-market value
                    We record our derivatives using an estimated credit-adjusted, mark-to-market valuation, calculated in accordance with IFRS.




                    As at December 31, 2016

                    (In millions of dollars, except exchange rates)

                    Notional

                    amount

                    (US$)


                    Exchange

                    rate


                    Notional

                    amount

                    (Cdn$)


                    Fair value

                    (Cdn$)

                    Debt derivatives accounted for as cash flow hedges:









                    As assets

                    5,200


                    1.0401


                    5,409


                    1,751


                    As liabilities                                              

                    1,500


                    1.3388


                    2,008


                    (68)

                    Short-term debt derivatives not accounted for as hedges:









                    As liabilities

                    150


                    1.3407


                    201


                    Net mark-to-market debt derivative asset




                    1,683

                    Bond forwards accounted for as cash flow hedges:









                    As liabilities





                    900


                    (51)

                    Expenditure derivatives accounted for as cash flow hedges:









                    As assets

                    990


                    1.2967


                    1,284


                    40


                    As liabilities

                    300


                    1.4129


                    424


                    (21)

                    Net mark-to-market expenditure derivative asset




                    19

                    Equity derivatives not accounted for as hedges:









                    As assets





                    270


                    8

                    Net mark-to-market asset




                    1,659




                    As at December 31, 2015

                    (In millions of dollars, except exchange rates)

                    Notional

                    amount

                    (US$)


                    Exchange

                    rate


                    Notional

                    amount

                    (Cdn$)


                    Fair value

                    (Cdn$)

                    Debt derivatives accounted for as cash flow hedges:









                    As assets

                    5,900


                    1.0755


                    6,345


                    2,032


                    As liabilities

                    300


                    1.3367


                    401


                    (4)

                    Net mark-to-market debt derivative asset




                    2,028

                    Bond forwards accounted for as cash flow hedges:









                    As liabilities



                    1,400


                    (91)

                    Expenditure derivatives accounted for as cash flow hedges:









                    As assets

                    1,140


                    1.2410


                    1,415


                    158

                    Equity derivatives not accounted for as hedges:









                    As liabilities



                    286


                    (15)

                    Net mark-to-market asset




                    2,080

                    Adjusted net debt and adjusted net debt / adjusted operating profit
                    We use adjusted net debt and adjusted net debt / adjusted operating profit to conduct valuation-related analysis and make capital structure-related decisions. Adjusted net debt includes long-term debt, net debt derivative assets or liabilities, short-term borrowings, and cash and cash equivalents or bank advances.








                    As at
                    December 31


                    As at

                    December 31

                    (In millions of dollars, except ratios)


                    2016


                    2015





                    Long-term debt 1


                    16,197


                    16,981

                    Net debt derivative assets valued without any adjustment for credit risk


                    (1,740)


                    (2,180)

                    Short-term borrowings


                    800


                    800

                    Bank advances (cash and cash equivalents)


                    71


                    (11)





                    Adjusted net debt 2


                    15,328


                    15,590





                    Adjusted net debt / adjusted operating profit 2,3


                    3.0


                    3.1

                    Includes current and long-term portion of long-term debt before deferred transaction costs and discounts. See "Reconciliation of adjusted net debt" in the section "Non-GAAP Measures" for the calculation of this amount.


                    Adjusted net debt and adjusted net debt / adjusted operating profit are non-GAAP measures and should not be considered substitutes or alternatives for GAAP measures. These are not defined terms under IFRS and do not have standard meanings, so may not be a reliable way to compare us to other companies. See "Non-GAAP Measures" for information about these measures, including how we calculate them.

                    Adjusted net debt / adjusted operating profit is measured using adjusted operating profit for the last twelve consecutive months.

                    In addition to the cash and cash equivalents as at December 31, 2016 and December 31, 2015 noted above, we held $1,047 million of marketable securities in publicly traded companies (December 31, 2015 - $966 million).

                    Our adjusted net debt decreased by $0.3 billion from December 31, 2015 primarily as a result of a decrease in our outstanding long-term debt, partially offset by a reduction in the fair value of our net debt derivative asset.

                    Outstanding common shares










                    As at
                    December 31


                    As at

                    December 31




                    2016


                    2015






                    Common shares outstanding 1







                    Class A Voting



                    112,411,992


                    112,438,692


                    Class B Non-Voting



                    402,396,133


                    402,307,976






                    Total common shares



                    514,808,125


                    514,746,668






                    Options to purchase Class B Non-Voting shares







                    Outstanding options



                    3,732,524


                    4,873,940


                    Outstanding options exercisable



                    1,770,784


                    2,457,005

                    Holders of our Class B Non-Voting shares are entitled to receive notice of and to attend shareholder meetings; however, they are not entitled to vote at these meetings except as required by law or stipulated by stock exchanges. If an offer is made to purchase outstanding Class A Voting shares, there is no requirement under applicable law or our constating documents that an offer be made for the outstanding Class B Non-Voting shares, and there is no other protection available to shareholders under our constating documents. If an offer is made to purchase both classes of shares, the offer for the Class A Voting shares may be made on different terms than the offer for the Class B Non-Voting shares.

                    Accounting Changes

                    We adopted the following amendments to accounting standards that were effective for our interim and annual consolidated financial statements commencing January 1, 2016. These changes did not have a material impact on our financial results.

                    • Amendments to IAS 16, Property, Plant and Equipment and IAS 38, Intangible Assets
                    • Amendments to IFRS 11, Joint Arrangements

                    In addition, following the November 2016 publication of the IFRS Interpretations Committee's agenda decision addressing the expected manner of recovery of intangible assets with indefinite useful lives for the purposes of measuring deferred tax, we have retrospectively changed our related accounting policy. The IFRS Interpretations Committee observed that in applying International Accounting Standard 12, an entity determines its expected manner of recovery of the carrying amount of the intangible asset with an indefinite useful life, and reflects the tax consequences that follow from that expected manner of recovery. Previously, we measured deferred taxes on temporary differences arising from the portion of indefinite-life intangible assets with no initial associated underlying tax basis using a capital gains tax rate based upon the notion that recovery would result solely from sales of the assets.  Consequently, we have adopted an accounting policy to measure deferred taxes on temporary differences arising from indefinite-life intangible assets based upon the tax consequences that follow from the expected manner of recovery of the assets.

                    This accounting policy has been applied in preparing this earnings release as at and for the year ended December 31, 2016 and the comparative information presented as at and for the three and twelve months ended December 31, 2015. The adjustment to previously reported amounts as a result of the change in the accounting policy are stated below.

                    Adjustments to Consolidated Statements of Income for the year ended December 31, 2015








                    (In millions of dollars, except per share amounts)


                    Previously reported
                    for the year ended
                    December 31, 2015


                    Adjustments


                    Amended for the year ended
                    December 31, 2015






                    Other (income) expense


                    (32)


                    28


                    (4)

                    Income tax expense


                    466


                    11


                    477

                    Net income


                    1,381


                    (39)


                    1,342






                    Earnings per share








                    Basic


                    $2.68


                    ($0.07)


                    $2.61


                    Diluted                                         


                    $2.67


                    ($0.07)


                    $2.60

                    Adjustments to Consolidated Statements of Income for the quarter ended March 31, 2016







                    (In millions of dollars, except per share amounts)

                    Previously reported
                    for the quarter ended
                    March 31, 2016


                    Adjustments


                    Amended for the quarter ended
                    March 31, 2016





                    Income tax expense

                    61


                    18


                    79

                    Net income

                    248


                    (18)


                    230





                    Earnings per share







                    Basic                                       

                    $0.48


                    ($0.03)


                    $0.45


                    Diluted

                    $0.48


                    ($0.04)


                    $0.44

                    Adjustments to the Consolidated Statements of Financial Position as at January 1, 2015





                    (In millions of dollars)

                    Previously reported as at
                    January 1, 2015


                    Adjustments


                    Amended as at
                    January 1, 2015





                    Goodwill 1

                    3,883


                    14


                    3,897

                    Total assets 1

                    26,522


                    14


                    26,536





                    Deferred tax liabilities

                    1,769


                    84


                    1,853

                    Shareholders' equity

                    5,481


                    (70)


                    5,411

                    Total liabilities and shareholders' equity

                    26,522


                    14


                    26,536

                    1 The adjustment relating to total assets and goodwill was recognized entirely within our Media reportable segment.

                    Adjustments to the Consolidated Statements of Financial Position as at December 31, 2015









                    (In millions of dollars)

                    Previously reported as at
                    December 31, 2015


                    Adjustments as at
                    January 1, 2015


                    Adjustments
                    for the year ended
                     December 31, 2015


                    Amended as at 
                    December 31, 2015






                    Goodwill 1

                    3,891


                    14



                    3,905

                    Total assets 1

                    29,175


                    14



                    29,189






                    Deferred tax liabilities

                    1,943


                    84


                    39


                    2,066

                    Shareholders' equity

                    5,745


                    (70)


                    (39)


                    5,636

                    Total liabilities and shareholders' equity

                    29,175


                    14



                    29,189

                    1 The adjustment relating to total assets and goodwill was recognized entirely within our Media reportable segment.

                    Key Performance Indicators

                    We measure the success of our strategy using a number of key performance indicators that are defined and discussed in our 2015 Annual MD&A and this earnings release. We believe these key performance indicators allow us to appropriately measure our performance against our operating strategy as well as against the results of our peers and competitors. The following key performance indicators are not measurements in accordance with IFRS and should not be considered an alternative to net income or any other measure of performance under IFRS. They include:

                    • Subscriber counts;
                    • Subscriber churn;
                    • Postpaid average revenue per account (ARPA);
                    • Blended average revenue per user (ARPU);
                    • Capital intensity; and
                    • Total service revenue.

                    Total service revenue
                    Commencing in the fourth quarter of 2016, we began disclosing total service revenue as one of our key performance indicators. We use total service revenue to measure our core business performance from the provision of services to our customers separate from revenue from the sale of equipment we have acquired from device manufacturers and resold. Included in this metric is our retail revenue from TSC and the Toronto Blue Jays, which are also core to our business. We calculate total service revenue by subtracting equipment revenue in Wireless, Cable, Business Solutions, and Corporate from total revenue.






                    Three months ended December 31


                    Twelve months ended December 31

                    (In millions of dollars)

                    2016


                    2015


                    2016


                    2015






                    Total revenue

                    3,510


                    3,452


                    13,702


                    13,414

                    Deduct:









                    Wireless equipment revenue

                    200


                    234


                    658


                    749


                    Cable equipment revenue

                    1


                    2


                    6


                    8


                    Business Solutions equipment revenue

                    2


                    1


                    6


                    4


                    Corporate equipment revenue

                    1


                    1


                    5


                    4






                    Total service revenue

                    3,306


                    3,214


                    13,027


                    12,649


                    Non-GAAP Measures

                    We use the following non-GAAP measures. These are reviewed regularly by management and our Board in assessing our performance and making decisions regarding the ongoing operations of our business and its ability to generate cash flows. Some or all of these measures may also be used by investors, lending institutions, and credit rating agencies as indicators of our operating performance, of our ability to incur and service debt, and as measurements to value companies in the telecommunications sector. These are not recognized measures under GAAP and do not have standard meanings under IFRS, so may not be reliable ways to compare us to other companies.






                    Non-GAAP measure


                    Why we use it


                    How we calculate it

                    Most
                    comparable IFRS financial
                    measure

                    Adjusted

                    operating profit

                    Adjusted

                    operating profit

                    margin

                    To evaluate the performance of our businesses,
                    and when making decisions about the ongoing
                    operations of the business and our ability to
                    generate cash flows.

                    Adjusted operating profit:

                    Net income

                    add (deduct)

                    income tax expense (recovery), other expense
                    (income), finance costs, restructuring, acquisition
                    and other, depreciation and amortization,
                    stock-based compensation, and impairment of
                    assets and related onerous contract charges.

                    Adjusted operating profit margin:

                    Adjusted operating profit

                    divided by

                    revenue (service revenue for Wireless).

                    Net income

                    We believe that certain investors and analysts
                    use adjusted operating profit to measure our
                    ability to service debt and to meet other
                    payment obligations.

                    We also use it as one component in determining
                    short-term incentive compensation for all
                    management employees.

                    Adjusted net

                    income

                    Adjusted basic

                    and diluted

                    earnings per

                    share

                    To assess the performance of our businesses
                    before the effects of the noted items, because
                    they affect the comparability of our financial
                    results and could potentially distort the analysis
                    of trends in business performance. Excluding
                    these items does not imply that they are
                    non-recurring.

                    Adjusted net income:

                    Net income

                    add (deduct)

                    stock-based compensation, restructuring,
                    acquisition and other, impairment of assets
                    and related onerous contract charges, loss (gain)
                    on sale or wind down of investments, (gain) on
                    acquisitions, loss on non-controlling interest
                    purchase obligations, loss on repayment of
                    long-term debt, and income tax adjustments
                    on these items, including adjustments as a
                    result of legislative changes.

                    Adjusted basic and diluted earnings per share:

                    Adjusted net income

                    divided by

                    basic and diluted weighted average shares
                    outstanding.

                    Net income

                    Basic and

                    diluted

                    earnings per

                    share

                    Free cash flow

                    To show how much cash we have available to
                    repay debt and reinvest in our company, which is
                    an important indicator of our financial strength
                    and performance.

                    Adjusted operating profit

                    deduct

                    additions to property, plant and equipment net
                    of proceeds on disposition, interest on
                    borrowings net of capitalized interest, and
                    cash income taxes.

                    Cash provided

                    by operating

                    activities

                    We believe that some investors and analysts
                    use free cash flow to value a business and its
                    underlying assets.

                    Adjusted net

                    debt

                    To conduct valuation-related analysis and make
                    decisions about capital structure.

                    Total long-term debt

                    add (deduct)

                    current portion of long-term debt, deferred
                    transaction costs and discounts, net debt
                    derivative (assets) liabilities, credit risk
                    adjustment related to net debt derivatives,
                    bank advances (cash and cash equivalents),
                    and short-term borrowings.

                    Long-term debt

                    We believe this helps investors and analysts
                    analyze our enterprise and equity value and
                    assess our leverage.

                    Adjusted net

                    debt / adjusted

                    operating profit

                    To conduct valuation-related analysis and make
                    decisions about capital structure.

                    Adjusted net debt (defined above)

                    divided by

                    12-month trailing adjusted operating profit
                    (defined above).

                    Long-term debt

                    divided by net

                    income

                    We believe this helps investors and analysts
                    analyze our enterprise and equity value and
                    assess our leverage.

                    Reconciliation of adjusted operating profit






                    Three months ended December 31


                    Twelve months ended December 31

                    (In millions of dollars)

                    2016


                    2015


                    2016


                    2015






                    Net (loss) income 1

                    (9)


                    299


                    835


                    1,342

                    Add (deduct):









                    Income tax (recovery) expense 1

                    (5)


                    112


                    324


                    477


                    Other (income) expense 1

                    (4)


                    4


                    191


                    (4)


                    Finance costs

                    188


                    192


                    761


                    774


                    Restructuring, acquisition and other

                    34


                    23


                    160


                    111


                    Depreciation and amortization

                    555


                    580


                    2,276


                    2,277


                    Impairment of assets and related onerous contract charges

                    484



                    484



                    Stock-based compensation

                    16


                    16


                    61


                    55






                    Adjusted operating profit

                    1,259


                    1,226


                    5,092


                    5,032

                    As a result of the IFRS Interpretations Committee's agenda decision relating to IAS 12 Income Taxes, certain amounts have been retrospectively amended. See "Accounting Changes" for more information.

                    Reconciliation of adjusted operating profit margin








                    Three months ended December 31


                    Twelve months ended December 31

                    (In millions of dollars, except percentages)


                    2016


                    2015



                    2016


                    2015









                    Adjusted operating profit margin:












                    Adjusted operating profit


                    1,259


                    1,226



                    5,092


                    5,032



                    Divided by: total revenue


                    3,510


                    3,452



                    13,702


                    13,414









                    Adjusted operating profit margin


                    35.9

                    %

                    35.5

                    %


                    37.2

                    %

                    37.5

                    %

                    Reconciliation of adjusted net income






                    Three months ended December 31


                    Twelve months ended December 31

                    (In millions of dollars)

                    2016


                    2015


                    2016


                    2015







                    Net (loss) income 1

                    (9)


                    299


                    835


                    1,342

                    Add (deduct):









                    Stock-based compensation

                    16


                    16


                    61


                    55


                    Restructuring, acquisition and other

                    34


                    23


                    160


                    111


                    Loss on repayment of long-term debt




                    7


                    Net loss on divestitures pertaining to investments



                    11



                    Gain on acquisition of Mobilicity 1




                    (74)


                    Loss on non-controlling interest purchase obligation




                    72


                    Loss on wind down of shomi



                    140



                    Impairment of assets and related onerous contract charges

                    484



                    484



                    Income tax impact of above items

                    (143)


                    (7)


                    (213)


                    (40)


                    Income tax adjustment, legislative tax change



                    3


                    6






                    Adjusted net income 1

                    382


                    331


                    1,481


                    1,479

                    As a result of the IFRS Interpretations Committee's agenda decision relating to IAS 12 Income Taxes, certain amounts have been retrospectively amended. See "Accounting Changes" for more information.

                    Reconciliation of adjusted earnings per share





                    (In millions of dollars, except per share amounts; number
                    of shares outstanding in millions)

                    Three months ended December 31


                    Twelve months ended December 31

                    2016


                    2015


                    2016


                    2015









                    Adjusted basic earnings per share:









                    Adjusted net income 1

                    382


                    331


                    1,481


                    1,479


                    Divided by:










                    Weighted average number of shares outstanding

                    515


                    515


                    515


                    515









                    Adjusted basic earnings per share

                    $0.74


                    $0.64


                    $2.88


                    $2.87









                    Adjusted diluted earnings per share:








                    Adjusted net income 1

                    382


                    331


                    1,481


                    1,479


                    Divided by:










                    Diluted weighted average number of shares outstanding

                    517


                    517


                    517


                    517









                    Adjusted diluted earnings per share 1

                    $0.74


                    $0.64


                    $2.86


                    $2.86

                    As a result of the IFRS Interpretations Committee's agenda decision relating to IAS 12 Income Taxes, certain amounts have been retrospectively amended. See "Accounting Changes" for more information.

                    Reconciliation of free cash flow






                    Three months ended December 31


                    Twelve months ended December 31

                    (In millions of dollars)

                    2016


                    2015


                    2016


                    2015






                    Cash provided by operating activities

                    1,053


                    950


                    3,957


                    3,747

                    Add (deduct):









                    Additions to property, plant and equipment

                    (604)


                    (773)


                    (2,352)


                    (2,440)


                    Interest on borrowings, net of capitalized interest

                    (182)


                    (185)


                    (740)


                    (732)


                    Restructuring, acquisition and other

                    34


                    23


                    160


                    111


                    Interest paid

                    124


                    133


                    756


                    771


                    Change in non-cash working capital

                    18


                    187


                    (14)


                    302


                    Other adjustments

                    (51)


                    (61)


                    (62)


                    (83)






                    Free cash flow

                    392


                    274


                    1,705


                    1,676

                    Reconciliation of adjusted net debt and adjusted net debt / adjusted operating profit








                    As at
                    December 31


                    As at

                    December 31

                    (In millions of dollars)


                    2016


                    2015





                    Current portion of long-term debt


                    750


                    1,000

                    Long-term debt


                    15,330


                    15,870

                    Deferred transaction costs and discounts


                    117


                    111



                    16,197


                    16,981

                    Add (deduct):






                    Net debt derivative assets


                    (1,683)


                    (2,028)


                    Credit risk adjustment related to net debt derivative assets


                    (57)


                    (152)


                    Short-term borrowings


                    800


                    800


                    Bank advances (cash and cash equivalents)


                    71


                    (11)





                    Adjusted net debt


                    15,328


                    15,590








                    As at
                    December 31


                    As at

                    December 31

                    (In millions of dollars, except ratios)


                    2016


                    2015





                    Adjusted net debt / adjusted operating profit






                    Adjusted net debt


                    15,328


                    15,590


                    Divided by: trailing 12-month adjusted operating profit


                    5,092


                    5,032





                    Adjusted net debt / adjusted operating profit


                    3.0


                    3.1

                    Other Information

                    Consolidated financial results - quarterly summary

                    The table below shows our consolidated results for the past eight quarters.







                    2016


                    2015

                    (In millions of dollars, except per share amounts)

                    Full Year


                    Q4


                    Q3


                    Q2


                    Q1


                    Full Year


                    Q4


                    Q3


                    Q2


                    Q1

                    Revenue





















                    Wireless

                    7,916


                    2,058


                    2,037


                    1,931


                    1,890


                    7,651


                    1,981


                    1,973


                    1,903


                    1,794


                    Cable

                    3,449


                    858


                    865


                    870


                    856


                    3,465


                    855


                    871


                    869


                    870


                    Business Solutions

                    384


                    96


                    95


                    97


                    96


                    377


                    95


                    94


                    94


                    94


                    Media

                    2,146


                    550


                    533


                    615


                    448


                    2,079


                    560


                    473


                    582


                    464


                    Corporate items and intercompany eliminations

                    (193)


                    (52)


                    (38)


                    (58)


                    (45)


                    (158)


                    (39)


                    (27)


                    (45)


                    (47)

                    Total revenue

                    13,702


                    3,510


                    3,492


                    3,455


                    3,245


                    13,414


                    3,452


                    3,384


                    3,403


                    3,175












                    Adjusted operating profit (loss)





















                    Wireless

                    3,285


                    792


                    884


                    846


                    763


                    3,239


                    754


                    879


                    841


                    765


                    Cable

                    1,674


                    435


                    431


                    415


                    393


                    1,658


                    426


                    416


                    414


                    402


                    Business Solutions

                    123


                    30


                    31


                    31


                    31


                    116


                    30


                    31


                    27


                    28


                    Media

                    169


                    49


                    79


                    90


                    (49)


                    172


                    56


                    58


                    90


                    (32)


                    Corporate items and intercompany eliminations

                    (159)


                    (47)


                    (40)


                    (35)


                    (37)


                    (153)


                    (40)


                    (39)


                    (35)


                    (39)

                    Adjusted operating profit 1

                    5,092


                    1,259


                    1,385


                    1,347


                    1,101


                    5,032


                    1,226


                    1,345


                    1,337


                    1,124

                    Deduct (add):





















                    Stock-based compensation

                    61


                    16


                    18


                    15


                    12


                    55


                    16


                    13


                    14


                    12


                    Depreciation and amortization

                    2,276


                    555


                    575


                    572


                    574


                    2,277


                    580


                    576


                    562


                    559


                    Impairment of assets and related onerous contract charges

                    484


                    484










                    Restructuring, acquisition and other

                    160


                    34


                    55


                    27


                    44


                    111


                    23


                    37


                    42


                    9


                    Finance costs

                    761


                    188


                    188


                    189


                    196


                    774


                    192


                    190


                    182


                    210


                    Other expense (income) 2

                    191


                    (4)


                    220


                    9


                    (34)


                    (4)


                    4


                    (31)


                    26


                    (3)

                    Net income (loss) before income tax expense (recovery) 2

                    1,159


                    (14)


                    329


                    535


                    309


                    1,819


                    411


                    560


                    511


                    337


                    Income tax expense (recovery) 2

                    324


                    (5)


                    109


                    141


                    79


                    477


                    112


                    135


                    148


                    82

                    Net income (loss) 2

                    835


                    (9)


                    220


                    394


                    230


                    1,342


                    299


                    425


                    363


                    255












                    Earnings (loss) per share 2:





















                    Basic

                    $1.62


                    ($0.02)


                    $0.43


                    $0.77


                    $0.45


                    $2.61


                    $0.58


                    $0.83


                    $0.70


                    $0.50


                    Diluted

                    $1.62


                    ($0.04)


                    $0.43


                    $0.76


                    $0.44


                    $2.60


                    $0.58


                    $0.82


                    $0.70


                    $0.48












                    Net income (loss) 2

                    835


                    (9)


                    220


                    394


                    230


                    1,342


                    299


                    425


                    363


                    255

                    Add (deduct):





















                    Stock-based compensation

                    61


                    16


                    18


                    15


                    12


                    55


                    16


                    13


                    14


                    12


                    Restructuring, acquisition and other

                    160


                    34


                    55


                    27


                    44


                    111


                    23


                    37


                    42


                    9


                    Gain on acquisition of Mobilicity 2






                    (74)



                    (74)




                    Loss on non-controlling interest purchase obligation






                    72



                    72




                    Loss on repayment of long-term debt






                    7





                    7


                    Loss on wind down of shomi

                    140



                    140









                    Net loss (gain) on divestitures pertaining to investments

                    11



                    50



                    (39)







                    Impairment of assets and related onerous contract charges

                    484


                    484










                    Income tax impact of above items 2

                    (213)


                    (143)


                    (56)


                    (9)


                    (5)


                    (40)


                    (7)


                    (12)


                    (13)


                    (8)


                    Income tax adjustment, legislative tax change

                    3





                    3


                    6




                    6


                    Adjusted net income 1,2

                    1,481


                    382


                    427


                    427


                    245


                    1,479


                    331


                    461


                    412


                    275












                    Adjusted earnings per share 1,2:





















                    Basic

                    $2.88


                    $0.74


                    $0.83


                    $0.83


                    $0.48


                    $2.87


                    $0.64


                    $0.90


                    $0.80


                    $0.53


                    Diluted

                    $2.86


                    $0.74


                    $0.83


                    $0.83


                    $0.47


                    $2.86


                    $0.64


                    $0.89


                    $0.80


                    $0.53












                    Additions to property, plant and equipment

                    2,352


                    604


                    549


                    647


                    552


                    2,440


                    773


                    571


                    621


                    475

                    Cash provided by operating activities

                    3,957


                    1,053


                    1,185


                    1,121


                    598


                    3,747


                    950


                    1,456


                    1,114


                    227

                    Free cash flow 1

                    1,705


                    392


                    598


                    495


                    220


                    1,676


                    274


                    660


                    476


                    266

                    Total service revenue 3

                    13,027


                    3,306


                    3,328


                    3,308


                    3,085


                    12,649


                    3,214


                    3,183


                    3,204


                    3,048

                    Adjusted operating profit, adjusted net income, adjusted basic and diluted earnings per share, and free cash flow are non-GAAP measures and should not be considered substitutes or alternatives for GAAP measures. These are not defined terms under IFRS and do not have standard meanings, so may not be a reliable way to compare us to other companies. See "Non-GAAP Measures" for information about these measures, including how we calculate them.

                    As a result of the IFRS Interpretations Committee's agenda decision relating to IAS 12 Income Taxes, certain amounts have been retrospectively amended. See "Accounting Changes" for more information.

                    As defined. See "Key Performance Indicators".

                    Supplementary Information

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








                    Three months ended
                    December 31


                    Twelve months ended
                    December 31



                    2016


                    2015


                    2016


                    2015







                    Revenue


                    3,510


                    3,452


                    13,702


                    13,414







                    Operating expenses:










                    Operating costs


                    2,267


                    2,242


                    8,671


                    8,437


                    Depreciation and amortization


                    555


                    580


                    2,276


                    2,277


                    Impairment of assets and related
                    onerous contract charges


                    484



                    484



                    Restructuring, acquisition and other


                    34


                    23


                    160


                    111

                    Finance costs


                    188


                    192


                    761


                    774

                    Other (income) expense 1


                    (4)


                    4


                    191


                    (4)







                    (Loss) income before income tax (recovery) expense 1


                    (14)


                    411


                    1,159


                    1,819

                    Income tax (recovery) expense 1


                    (5)


                    112


                    324


                    477







                    Net (loss) income 1


                    (9)


                    299


                    835


                    1,342







                    (Loss) earnings per share 1:










                    Basic


                    ($0.02)


                    $0.58


                    $1.62


                    $2.61


                    Diluted


                    ($0.04)


                    $0.58


                    $1.62


                    $2.60

                    As a result of the IFRS Interpretations Committee's agenda decision relating to IAS 12 Income Taxes, certain amounts have been retrospectively amended. See "Accounting Changes" for more information.

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












                    As at
                    December 31


                    As at
                    December 31





                    2016


                    2015







                    Assets






                    Current assets:








                    Cash and cash equivalents





                    11


                    Accounts receivable




                    1,949


                    1,792


                    Inventories




                    315


                    318


                    Other current assets




                    215


                    303


                    Current portion of derivative instruments




                    91


                    198

                    Total current assets




                    2,570


                    2,622







                    Property, plant and equipment




                    10,749


                    10,997

                    Intangible assets




                    7,130


                    7,243

                    Investments




                    2,174


                    2,271

                    Derivative instruments




                    1,708


                    1,992

                    Other long-term assets




                    98


                    150

                    Deferred tax assets




                    8


                    9

                    Goodwill 1




                    3,905


                    3,905







                    Total assets 1




                    28,342


                    29,189







                    Liabilities and shareholders' equity






                    Current liabilities:








                    Bank advances




                    71



                    Short-term borrowings




                    800


                    800


                    Accounts payable and accrued liabilities




                    2,783


                    2,708


                    Income tax payable




                    186


                    96


                    Current portion of provisions




                    134


                    10


                    Unearned revenue




                    367


                    388


                    Current portion of long-term debt




                    750


                    1,000


                    Current portion of derivative instruments




                    22


                    15

                    Total current liabilities




                    5,113


                    5,017







                    Provisions




                    33


                    50

                    Long-term debt




                    15,330


                    15,870

                    Derivative instruments




                    118


                    95

                    Other long-term liabilities




                    562


                    455

                    Deferred tax liabilities 1




                    1,917


                    2,066

                    Total liabilities 1




                    23,073


                    23,553







                    Shareholders' equity 1




                    5,269


                    5,636







                    Total liabilities and shareholders' equity 1




                    28,342


                    29,189

                    As a result of the IFRS Interpretations Committee's agenda decision relating to IAS 12 Income Taxes, certain amounts have been retrospectively amended. See "Accounting Changes" for more information.


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






                    Three months ended December 31


                    Twelve months ended December 31


                    2016


                    2015


                    2016


                    2015

                    Operating activities:









                    Net (loss) income for the period 1

                    (9)


                    299


                    835


                    1,342


                    Adjustments to reconcile net (loss) income to cash provided by
                    operating activities:










                    Depreciation and amortization

                    555


                    580


                    2,276


                    2,277



                    Program rights amortization

                    17


                    21


                    71


                    87



                    Finance costs

                    188


                    192


                    761


                    774



                    Income tax (recovery) expense 1

                    (5)


                    112


                    324


                    477



                    Stock-based compensation

                    16


                    16


                    61


                    55



                    Post-employment benefits contributions, net of expense

                    28


                    31


                    (3)


                    (16)



                    Net loss on divestitures pertaining to investments



                    11




                    Loss on wind down of shomi



                    140




                    Impairment of assets and related onerous contract charges

                    484



                    484




                    Gain on acquisition of Mobilicity 1




                    (74)



                    Other

                    2


                    13


                    34


                    82


                    Cash provided by operating activities before changes in non-cash
                    working capital items, income taxes paid, and interest paid

                    1,276


                    1,264


                    4,994


                    5,004


                    Change in non-cash operating working capital items

                    (18)


                    (187)


                    14


                    (302)


                    Cash provided by operating activities before income taxes paid
                    and interest paid

                    1,258


                    1,077


                    5,008


                    4,702


                    Income taxes (paid) received

                    (81)


                    6


                    (295)


                    (184)


                    Interest paid

                    (124)


                    (133)


                    (756)


                    (771)







                    Cash provided by operating activities

                    1,053


                    950


                    3,957


                    3,747







                    Investing activities:









                    Additions to property, plant and equipment

                    (604)


                    (773)


                    (2,352)


                    (2,440)


                    Additions to program rights

                    (3)


                    (27)


                    (46)


                    (64)


                    Changes in non-cash working capital related to property, plant and
                    equipment and intangible assets

                    44


                    167


                    (103)


                    (116)


                    Acquisitions and other strategic transactions, net of cash acquired


                    (5)



                    (1,077)


                    Other

                    49


                    (32)


                    45


                    (70)







                    Cash used in investing activities

                    (514)


                    (670)


                    (2,456)


                    (3,767)







                    Financing activities:









                    Net repayment on short-term borrowings

                    (250)


                    (59)



                    (42)


                    Net (repayment) issuance of long-term debt

                    (57)


                    82


                    (538)


                    754


                    Net (payment) proceeds on settlement of debt derivatives and
                    forward contracts

                    (28)


                    (25)


                    (45)


                    129


                    Transaction costs incurred

                    (17)


                    (9)


                    (17)


                    (9)


                    Dividends paid

                    (247)


                    (247)


                    (988)


                    (977)


                    Other



                    5








                    Cash used in financing activities

                    (599)


                    (258)


                    (1,583)


                    (145)







                    Change in cash and cash equivalents

                    (60)


                    22


                    (82)


                    (165)

                    (Bank advances) cash and cash equivalents, beginning of period

                    (11)


                    (11)


                    11


                    176







                    (Bank advances) cash and cash equivalents, end of period

                    (71)


                    11


                    (71)


                    11

                    As a result of the IFRS Interpretations Committee's agenda decision relating to IAS 12 Income Taxes, certain amounts have been retrospectively amended. See "Accounting Changes" for more information.

                    Investments












                    As at
                    December 31


                    As at

                    December 31

                    (In millions of dollars)




                    2016


                    2015







                    Investments in:








                    Publicly traded companies




                    1,047


                    966


                    Private companies




                    169


                    212

                    Investments, available-for-sale




                    1,216


                    1,178

                    Investments, associates and joint ventures




                    958


                    1,093







                    Total investments




                    2,174


                    2,271

                    Long-Term Debt












                    Principal

                    amount


                    Interest

                    rate

                    As at
                    December 31

                    As at
                    December 31

                    (In millions of dollars, except interest rates)

                    Due date


                    2016

                    2015








                    Bank credit facilities




                    Floating

                    100

                    500

                    Bank credit facilities


                    US

                    150


                    Floating

                    201

                    Senior notes

                    2016


                    1,000


                    5.800

                    %

                    1,000

                    Senior notes

                    2017


                    500


                    3.000

                    %

                    500

                    500

                    Senior notes

                    2017


                    250


                    Floating

                    250

                    250

                    Senior notes

                    2018

                    US

                    1,400


                    6.800

                    %

                    1,880

                    1,938

                    Senior notes

                    2019


                    400


                    2.800

                    %

                    400

                    400

                    Senior notes

                    2019


                    500


                    5.380

                    %

                    500

                    500

                    Senior notes

                    2020


                    900


                    4.700

                    %

                    900

                    900

                    Senior notes

                    2021


                    1,450


                    5.340

                    %

                    1,450

                    1,450

                    Senior notes

                    2022


                    600


                    4.000

                    %

                    600

                    600

                    Senior notes

                    2023

                    US

                    500


                    3.000

                    %

                    671

                    692

                    Senior notes

                    2023

                    US

                    850


                    4.100

                    %

                    1,141

                    1,176

                    Senior notes

                    2024


                    600


                    4.000

                    %

                    600

                    600

                    Senior notes

                    2025

                    US

                    700


                    3.625

                    %

                    940

                    969

                    Senior notes

                    2026

                    US

                    500


                    2.900

                    %

                    671

                    Senior debentures 1

                    2032

                    US

                    200


                    8.750

                    %

                    269

                    277

                    Senior notes

                    2038

                    US

                    350


                    7.500

                    %

                    470

                    484

                    Senior notes

                    2039


                    500


                    6.680

                    %

                    500

                    500

                    Senior notes

                    2040


                    800


                    6.110

                    %

                    800

                    800

                    Senior notes

                    2041


                    400


                    6.560

                    %

                    400

                    400

                    Senior notes

                    2043

                    US

                    500


                    4.500

                    %

                    671

                    692

                    Senior notes

                    2043

                    US

                    650


                    5.450

                    %

                    873

                    900

                    Senior notes

                    2044

                    US

                    1,050


                    5.000

                    %

                    1,410

                    1,453






                    16,197

                    16,981

                    Deferred transaction costs and discounts





                    (117)

                    (111)

                    Less current portion





                    (750)

                    (1,000)








                    Total long-term debt





                    15,330

                    15,870

                    Senior debentures originally issued by Rogers Cable Inc. which are unsecured obligations of RCI and for which RCCI was an unsecured guarantor as at December 31, 2016 and for which Rogers Communications Partnership was an unsecured guarantor as at December 31, 2015.

                    About Forward-Looking Information

                    This earnings release includes "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws (collectively, "forward-looking information"), and assumptions about, among other things, our business, operations, and financial performance and condition approved by our management on the date of this earnings release. This forward-looking information and these assumptions include, but are not limited to, statements about our objectives and strategies to achieve those objectives, and about our beliefs, plans, expectations, anticipations, estimates, or intentions.

                    Forward-looking information

                    • typically includes words like could, expect, may, anticipate, assume, believe, intend, estimate, plan, project, guidance, outlook, target, and similar expressions, although not all forward-looking information includes them;
                    • includes conclusions, forecasts, and projections that are based on our current objectives and strategies and on estimates, expectations, assumptions, and other factors, most of which are confidential and proprietary and that we believe to have been reasonable at the time they were applied but may prove to be incorrect; and
                    • was approved by our management on the date of this earnings release.

                    Our forward-looking information includes forecasts and projections related to the following items, some of which are non-GAAP measures (see "Non-GAAP Measures"), among others:

                    • revenue;
                    • adjusted operating profit;
                    • additions to property, plant and equipment;
                    • cash income tax payments;
                    • free cash flow;
                    • dividend payments;
                    • the growth of new products and services;
                    • expected growth in subscribers and the services to which they subscribe;
                    • the cost of acquiring and retaining subscribers and deployment of new services;
                    • continued cost reductions and efficiency improvements; and
                    • all other statements that are not historical facts.

                    Specific forward-looking information included or incorporated in this document include, but is not limited to, our information and statements under "2017 Outlook" relating to our 2017 consolidated guidance on revenue, adjusted operating profit, additions to property, plant and equipment, and free cash flow. All other statements that are not historical facts are forward-looking statements.

                    We base our conclusions, forecasts, and projections on the following factors, among others:

                    • general economic and industry growth rates;
                    • currency exchange rates and interest rates;
                    • product pricing levels and competitive intensity;
                    • subscriber growth;
                    • pricing, usage, and churn rates;
                    • changes in government regulation;
                    • technology deployment;
                    • availability of devices;
                    • timing of new product launches;
                    • content and equipment costs;
                    • the integration of acquisitions; and
                    • industry structure and stability.

                    Except as otherwise indicated, this earnings release and our forward-looking information 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 on which the statement containing the forward-looking information is made.

                    Risks and uncertainties
                    Actual events and results can be substantially different from what is expressed or implied by forward-looking information as a result of risks, uncertainties, and other factors, many of which are beyond our control, including, but not limited to:

                    • regulatory changes;
                    • economic conditions;
                    • unanticipated changes in content or equipment costs;
                    • changing conditions in the entertainment, information, and communications industries;
                    • the integration of acquisitions;
                    • litigation and tax matters;
                    • technological changes;
                    • the level of competitive intensity;
                    • the emergence of new opportunities; and
                    • new interpretations and new accounting standards from accounting standards bodies.

                    These factors can also affect our objectives, strategies, and intentions. Many of these factors are beyond our control or our current expectations or knowledge. Should one or more of these risks, uncertainties, or other factors materialize, our objectives, strategies, or intentions change, or any other factors or assumptions underlying the forward-looking information prove incorrect, our actual results and our plans could vary significantly from what we currently foresee.

                    Accordingly, we warn investors to exercise caution when considering statements containing forward-looking information and caution them that it would be unreasonable to rely on such statements as creating legal rights regarding our future results or plans. We are under no obligation (and we expressly disclaim any such obligation) to update or alter any statements containing forward-looking information or the factors or assumptions underlying them, whether as a result of new information, future events, or otherwise, except as required by law. All of the forward-looking information in this earnings release is qualified by the cautionary statements herein.

                    Key assumptions underlying our 2017 guidance
                    Our 2017 guidance ranges under "2017 Outlook" are based on many assumptions including, but not limited to, the following material assumptions:

                    • continued intense competition consistent with our experience during the full-year 2016 in all segments in which we operate;
                    • a substantial portion of our US dollar-denominated expenditures for 2017 is hedged at an average exchange rate of $1.33/US$;
                    • key interest rates remain relatively stable throughout 2017;
                    • no significant additional regulatory developments, shifts in economic condition, or macro changes in the competitive environment affecting our business activities. We note that regulatory decisions expected during 2017 could materially alter underlying assumptions around our 2017 Wireless, Cable, Business Solutions, and/or Media results in the current and future years, the impacts of which are currently unknown and not factored into our guidance;
                    • the CRTC decision to require distributors to offer a basic entry-level television package capped at $25 per month, as well as channels above the basic tier on an "à la carte" basis and in smaller, reasonably priced packages, is not expected to materially impact our Cable revenue;
                    • the CRTC decision to significantly reduce interim rates for the capacity charge tariff component of wholesale high-speed access service pending approval of final rates is expected to have an impact on our Cable revenue;
                    • Wireless customers will continue to adopt, and upgrade to, higher-value smartphones and a similar proportion of customers will remain on term contracts;
                    • overall wireless market penetration in Canada is expected to grow in 2017 at a similar rate as in 2016;
                    • our relative market share in Wireless and Cable will not be negatively impacted;
                    • continued subscriber growth in Wireless and Cable Internet; moderating net losses in Cable Television subscribers; and a relatively stable Phone subscriber base;
                    • in Business Solutions, continued declines in our legacy and off-net business, and the continued execution of our plan to grow higher-margin next generation IP- and cloud-based services;
                    • in Media, continued growth in Sportsnet and declines in our traditional media businesses, including our print publishing offerings; and
                    • with respect to additions to property, plant and equipment:
                    • we have rolled out LTE across the majority of our coverage area as well as deployed newly-acquired 700 MHz and AWS-1 spectrum; and
                    • we will make expenditures to prepare our network for our anticipated rollout of the Comcast X1 IPTV platform in early 2018.

                    Before making an investment decision
                    Before making any investment decisions and for a detailed discussion of the risks, uncertainties, and environment associated with our business, fully review the sections in our 2015 Annual MD&A entitled "Regulation in Our Industry" and "Governance and Risk Management", as well as our various other filings with Canadian and US securities regulators, which can be found at sedar.com and sec.gov, respectively. Information on or connected to our website is not part of or incorporated into this earnings release.

                    SOURCE Rogers Communications Canada Inc. - English

                    To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/January2017/26/c8309.html

                    For further information: Investment community contact, Amy Schwalm, 416.704.9057, amy.schwalm@rci.rogers.com; Media contact, Terrie Tweddle, 416.935.4727, terrie.tweddle@rci.rogers.com

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