FA Play

2006
—————— ——————————–
(In millions of
dollars, except
per share amounts) Q1 Q2 Q3
—————— ——————————–

Income Statement
Operating revenue
Wireless $ 1,005 $ 1,094 $ 1,224
Cable 772 787 800
Media 240 334 319
Corporate and
eliminations (33) (36) (38)
—————— ——————————–
1,984 2,179 2,305
—————— ——————————–

Operating profit
before the
undernoted
Wireless 412 490 564
Cable 222 237 219
Media 14 53 41
Corporate and
eliminations (30) (24) (24)
—————— ——————————–
618 756 800

Stock option plan
amendment(1) - - -
Stock-based
compensation
recovery
(expense)(1) (13) (10) (14)
Integration and
restructuring
expenses(2) (11) (2) (1)
Adjustment for
CRTC Part II
fees decision(3) - - -
Contract
renegotiation
fee(4) - - -
—————— ——————————–
Operating profit(5) 594 744 785
Depreciation and
amortization 386 395 408
—————— ——————————–
Operating income 208 349 377
Interest on
long-term debt (161) (155) (153)

Other income
(expense) 1 17 6
Income tax reduction
(expense) (35) 68 (76)
—————— ——————————–
Net income (loss)
for the period $ 13 $ 279 $ 154
—————— ——————————–
—————— ——————————–

Net income (loss)
per share:
Basic $ 0.02 $ 0.44 $ 0.25
Diluted $ 0.02 $ 0.44 $ 0.24

Additions to
PP&E(5) $ 340 $ 403 $ 415
—————— ——————————–
(1) See section entitled “Stock-based Compensation”.
(2) Costs incurred relate to the integration of Fido, Call-Net, the
restructuring of Rogers Business Solutions, and the closure of
certain Rogers Retail stores.
(3) Relates to an adjustment of CRTC Part II fees related to prior
periods as a result of a notice from the CRTC that the Part II fees
due in November 2007 will not be collected by the CRTC. This
adjustment was applicable to the third quarter of 2007 and does not
impact the full year 2007.
(4) One-time charge resulting from the renegotiation of an Internet-
related services agreement with Yahoo!.
(5) As defined. See the “Key Performance Indicators and Non-GAAP
Measures” section.

SUPPLEMENTARY INFORMATION
Rogers Communications Inc. Adjusted Quarterly Summary(1)

2008 2007
—————————– ——————————————-
(In millions of
dollars, except
per share amounts) Q1 Q1 Q2 Q3 Q4
—————————– ——————————————-

Income Statement
Operating revenue
Wireless $ 1,431 $ 1,231 $ 1,364 $ 1,442 $ 1,466
Cable 925 855 881 899 923
Media 307 266 348 339 364
Corporate and
eliminations (54) (54) (66) (69) (66)
—————————– ——————————————-
2,609 2,298 2,527 2,611 2,687
—————————– ——————————————-

Adjusted operating
profit(2)
Wireless 705 581 664 686 658
Cable 303 228 243 265 265
Media 2 19 45 46 63
Corporate and
eliminations (26) (14) (22) (13) (29)
—————————– ——————————————-
984 814 930 984 957
Depreciation and
amortization 440 400 398 397 408
—————————– ——————————————-
Adjusted operating
income 544 414 532 587 549
Interest on
long-term debt (138) (149) (152) (140) (138)
Other income
(expense) (3) 7 23 (14) -
Income tax reduction
(expense) (133) (86) (104) (165) (109)
—————————– ——————————————-
Adjusted net income
for the period $ 270 $ 186 $ 299 $ 268 $ 302
—————————– ——————————————-
—————————– ——————————————-

Adjusted net income
per share:
Basic $ 0.42 $ 0.29 $ 0.47 $ 0.42 $ 0.47
Diluted $ 0.42 $ 0.29 $ 0.47 $ 0.41 $ 0.47

Additions to
PP&E(2) $ 321 $ 394 $ 381 $ 397 $ 624
—————————– ——————————————-

2006
—————— ——————————–
(In millions of
dollars, except
per share amounts) Q1 Q2 Q3
—————— ——————————–

Income Statement
Operating revenue
Wireless $ 1,005 $ 1,094 $ 1,224
Cable 772 787 800
Media 240 334 319
Corporate and
eliminations (33) (36) (38)
—————— ——————————–
1,984 2,179 2,305
—————— ——————————–

Adjusted operating
profit(2)
Wireless 412 490 564
Cable 222 237 219
Media 14 53 41
Corporate and
eliminations (30) (24) (24)
—————— ——————————–
618 756 800
Depreciation and
amortization 386 395 408
—————— ——————————–
Adjusted operating
income 232 361 392
Interest on
long-term debt (161) (155) (153)
Other income
(expense) 1 17 6
Income tax reduction
(expense) (39) 67 (76)
—————— ——————————–
Adjusted net income
for the period $ 33 $ 290 $ 169
—————— ——————————–
—————— ——————————–

Adjusted net income
per share:
Basic $ 0.05 $ 0.46 $ 0.27
Diluted $ 0.05 $ 0.45 $ 0.27

Additions to
PP&E(2) $ 340 $ 403 $ 415
—————— ——————————–
(1) This quarterly summary has been adjusted to exclude the impact of the
adoption of a cash settlement feature for employee stock options,
stock-based compensation (recovery) expense, integration and
restructuring expenses, an adjustment to CRTC Part II fees related to
prior periods, a one-time charge related to the renegotiation of an
Internet-related services agreement, losses on repayment of
long-term debt and the income tax impact related to the above items.
See the “Key Performance Indicators and Non-GAAP Measures” section.
The adjustment related to Part II CRTC fees is applicable to the
third quarter of 2007 and does not impact the full year 2007.
(2) As defined. See the “Key Performance Indicators and Non-GAAP
Measures” section.

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

————————————————————————-
Three Months Ended
March 31,
2008 2007
————————————————————————-

Operating revenue $ 2,609 $ 2,298

Operating expenses:
Cost of sales 228 218
Sales and marketing 299 305
Operating, general and administrative 982 976
Integration and restructuring 5 1
Depreciation and amortization 440 400
————————————————————————-

Operating income 655 398

Interest on long-term debt (138) (149)
————————————————————————-
517 249

Foreign exchange gain (loss) (7) 10
Change in fair value of derivative instruments (4) (4)
Other income 8 1
————————————————————————-

Income before income taxes 514 256
————————————————————————-

Income tax expense:
Current 2 -
Future 168 86
———————————————————————–
170 86

————————————————————————-
Net income for the period $ 344 $ 170
————————————————————————-
————————————————————————-

Net income per share:
Basic $ 0.54 $ 0.27
Diluted 0.54 0.26

————————————————————————-
————————————————————————-

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

————————————————————————-
March 31, December 31,
(In millions of dollars) 2008 2007
————————————————————————-

Assets

Current assets
Accounts receivable $ 1,131 $ 1,245
Other current assets 384 304
Future income tax assets 397 594
———————————————————————–
1,912 2,143

Property, plant and equipment 7,242 7,289
Goodwill 3,030 3,027
Intangible assets 2,030 2,086
Investments 370 485
Deferred charges 105 111
Other long-term assets 204 184

————————————————————————-
$ 14,893 $ 15,325
————————————————————————-
————————————————————————-

Liabilities and Shareholders’ Equity

Current liabilities
Bank advances, arising from outstanding
cheques $ 67 $ 61
Accounts payable and accrued liabilities 1,920 2,260
Current portion of long-term debt 1 1
Current portion of derivative instruments 161 195
Unearned revenue 252 225
———————————————————————–
2,401 2,742

Long-term debt 6,033 6,032
Derivative instruments 1,459 1,609
Other long-term liabilities 205 214
Future income tax liabilities 89 104
————————————————————————-
10,187 10,701

Shareholders’ equity 4,706 4,624

————————————————————————-
$ 14,893 $ 15,325
————————————————————————-
————————————————————————-

Rogers Communications Inc.
Unaudited Interim Consolidated Statements of Shareholders’ Equity
(In millions of dollars)

Three months ended March 31, 2008

————————————————————————-

Class A Class B
Voting shares Non-Voting shares
———————– ———————-
Number of Number of
Amount shares Amount shares
————————————————————————-
(000s) (000s)

Balances, January 1, 2008 $ 72 112,462 $ 471 527,005
Net income for the period - - - -
Shares issued on exercise
of stock options - - 3 57
Dividends declared - - - -
Other comprehensive loss - - - -

————————————————————————-
Balances, March 31, 2008 $ 72 112,462 $ 474 527,062
————————————————————————-
————————————————————————-

————————————————————————-
Accumulated
other
compre- Total
hensive share-
Contributed Retained income holders’
surplus earnings (loss) equity
————————————————————————-

Balances, January 1, 2008 $ 3,689 $ 342 $ 50 $ 4,624
Net income for the period - 344 - 344
Shares issued on exercise
of stock options - - - 3
Dividends declared - (159) - (159)
Other comprehensive loss - - (106) (106)

————————————————————————-
Balances, March 31, 2008 $ 3,689 $ 527 $ (56) $ 4,706
————————————————————————-
————————————————————————-

Three months ended March 31, 2007

————————————————————————-

Class A Class B
Voting shares Non-Voting shares
———————– ———————-
Number of Number of
Amount shares Amount shares
————————————————————————-
(000s) (000s)

Balances, January 1, 2007 $ 72 112,468 $ 425 523,232
Net income for the period - - - -
Shares issued on exercise
of stock options - - 18 1,964
Stock-based compensation - - - -
Dividends declared - - - -
Other comprehensive income - - - -

————————————————————————-
Balances, March 31, 2007 $ 72 112,468 $ 443 525,196
————————————————————————-
————————————————————————-

————————————————————————-
Accumulated
other
compre- Total
Retained hensive share-
Contributed earnings income holders’
surplus (deficit) (loss) equity
————————————————————————-

Balances, January 1, 2007 $ 3,736 $ (30) $ (214) $ 3,989
Net income for the period - 170 - 170
Shares issued on exercise
of stock options (4) - - 14
Stock-based compensation 8 - - 8
Dividends declared - (25) - (25)
Other comprehensive income - - 123 123

————————————————————————-
Balances, March 31, 2007 $ 3,740 $ 115 $ (91) $ 4,279
————————————————————————-
————————————————————————-

Rogers Communications Inc.
Unaudited Interim Consolidated Statements of Comprehensive Income
(In millions of dollars)

————————————————————————-
Three months ended
March 31,
2008 2007
————————————————————————-

Net income for the period $ 344 $ 170

Other comprehensive income (loss):
Change in fair value of available-for-sale
investments:
Increase (decrease) in fair value (111) 90
Change in fair value of cash flow hedging
derivative instruments:
Decrease (increase) in fair value 151 (21)
Reclassification to net income of foreign
exchange loss (gain) (167) 52
Reclassification to net income of accrued
interest 35 20
———————————————————————
19 51
Related income taxes (14) (18)
———————————————————————–
(106) 123

————————————————————————-
Total comprehensive income $ 238 $ 293
————————————————————————-
————————————————————————-

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

————————————————————————-
Three months ended
March 31,
2008 2007
————————————————————————-

Cash provided by (used in):

Operating activities:
Net income for the period $ 344 $ 170
Adjustments to reconcile net income to cash
flows from operating activities:
Depreciation and amortization 440 400
Program rights and Rogers Retail rental
amortization 35 19
Future income taxes 168 86
Unrealized foreign exchange gain - (8)
Change in fair value of derivative instruments 4 4
Stock-based compensation expense (recovery) (116) 15
Amortization on fair value increment of
long-term debt (1) (2)
Other (5) (1)
———————————————————————–
869 683
Change in non-cash operating working capital items (170) (268)
———————————————————————–
699 415
————————————————————————-

Investing activities:
Additions to property, plant and equipment
(”PP&E”) (321) (394)
Change in non-cash working capital items
related to PP&E (82) (88)
Acquisitions, net of cash and cash
equivalents acquired (7) (43)
Additions to program rights (36) (14)
Deposits paid on acquisition (16) -
Other 2 6
———————————————————————–
(460) (533)
————————————————————————-

Financing activities:
Issuance of long-term debt 250 768
Repayment of long-term debt (415) (697)
Issuance of capital stock on exercise
of stock options - 14
Dividends paid on Class A Voting and Class B
Non-Voting shares (80) (25)
———————————————————————–
(245) 60
————————————————————————-

Decrease in cash and cash equivalents (6) (58)

Cash deficiency, beginning of period (61) (19)
————————————————————————-
Cash deficiency, end of period $ (67) $ (77)
————————————————————————-
————————————————————————-

Supplemental cash flow information:
Income taxes paid $ - $ 1
Interest paid 104 127
————————————————————————-
————————————————————————-

The change in non-cash operating working
capital items is as follows:
Decrease in accounts receivable $ 118 $ 147
Increase in other assets (90) (117)
Decrease in accounts payable and accrued
liabilities (225) (321)
Increase in unearned revenue 27 23
————————————————————————-
$ (170) $ (268)
————————————————————————-
————————————————————————-

Cash and cash equivalents (deficiency) are defined as cash and short-term deposits which have an original maturity of less than 90 days, less bank advances.
The preceding MD&A and financial statements should be read in conjunction with the first quarter 2008 Notes to the Unaudited Interim Consolidated Financial Statements that can be found at and on SEDAR at or on EDGAR at .
Caution Regarding Forward-Looking Statements, Risks and Assumptions
This MD&A includes forward-looking statements and assumptions concerning the future performance of our business, its operations and its financial performance and condition approved by management on the date of this MD&A. These forward-looking statements and assumptions include, but are not limited to, statements with respect to our objectives and strategies to achieve those objectives, as well as statements with respect to our beliefs, plans, expectations, anticipations, estimates or intentions, as well as to guidance relating to revenue, adjusted operating profit, PP&E expenditures, free cash flow, expected growth in subscribers, the deployment of new services and all other statements that are not historical facts. Such forward-looking statements are based on current expectations and various factors and assumptions applied that we believe to be reasonable at the time, including but not limited to, general economic and industry growth rates, currency exchange rates, product pricing levels and competitive intensity, subscriber growth and usage rates, changes in government regulation, technology deployment, device availability, the timing of new product launches, content and equipment costs, the integration of acquisitions, and industry structure and stability.
Except as otherwise indicated, this MD&A does 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 announced or may occur after the date of the financial information contained herein.
We caution that all forward-looking information is inherently uncertain and that actual results may differ materially from the assumptions, estimates or expectations reflected in the forward-looking information. A number of factors could cause actual results to differ materially from those in the forward-looking statements, including but not limited to economic conditions, technological change, the integration of acquisitions, unanticipated changes in content or equipment costs, changing conditions in the entertainment, information and communications industries, regulatory changes, litigation and tax matters, and the level of competitive intensity, many of which are beyond our control. Therefore, should one or more of these risks materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary significantly from what we currently foresee. Accordingly, we warn investors to exercise caution when considering any such forward-looking information herein and to not place undue reliance on such statements and assumptions. We are under no obligation (and we expressly disclaim any such obligation) to update or alter any forward-looking statements or assumptions whether as a result of new information, future events or otherwise, except as required by law.
Before making any investment decisions and for a detailed discussion of the risks, uncertainties and environment associated with our business, fully review the sections of this MD&A entitled “Updates to Risks and Uncertainties” and “Government Regulation and Regulatory Developments”, and also the sections entitled “Risks and Uncertainties Affecting our Businesses” and “Government Regulation and Regulatory Developments” in our 2007 Annual MD&A.
Additional Information
Additional information relating to us, including our 2007 Annual Report and 2007 Annual Information Form, may be found on SEDAR at or on EDGAR at .
About the Company
We are a diversified Canadian communications and media company. We are engaged in wireless voice and data communications services through Wireless, Canada’s largest wireless provider and the operator of the country’s only national Global System for Mobile Communications (”GSM”) based network. Through Cable we are one of Canada’s largest providers of cable television services as well as high-speed Internet access and telephony services. Through Media, we are engaged in radio and television broadcasting, televised shopping, magazines and trade publications, and sports entertainment. We are publicly traded on the Toronto Stock Exchange (TSX: RCI.A and RCI.B) and on the New York Stock Exchange .
For further information about the Rogers group of companies, please visit .
Quarterly investment Community Conference Call
As previously announced by press release, a live Webcast of our quarterly results conference call with the investment community will be broadcast via the Internet at beginning at 12:00 p.m. ET today, April 29, 2008. A rebroadcast of this call will be available on the Webcast Archive page of the Investor Relations section of for a period of at least two weeks following the conference call.
Rogers Communications Inc.