Rogers adds 39k digital cable subscribers in 4Q09

TORONTO — Rogers Communications Inc. (TSX: RCI.a; RCI.b)(NYSE: RCI) today announced its unaudited consolidated financial and operating results for the three months and twelve months ended December 31, 2009.

Highlights of the fourth quarter of 2009 include the following:

• Additions of digital cable and Internet subscribers at Cable both improved sequentially from the previous quarter, but have slowed from the previous year reflecting the negative economic and employment trends in Ontario where 90% of Cable’s market is concentrated. Increasing levels of product maturity have also contributed to slowing subscriber growth with Internet subscriber penetration at 71% of television subscribers, digital penetration at 72% of television households, and residential voice-over-cable telephony penetration at 41% of television subscribers.
• Cable furthered its lead as Canada’s premium video entertainment provider with the addition of 13 new high-definition channels (“HD”) to its already robust content lineup, bringing the Rogers Cable offering to more than 100 fully dedicated HD channels and over 470 HD Movies, specials and TV shows On Demand. Rogers Cable customers can now receive up to four times more HD content choices than are available through Canadian satellite TV offerings.
• Cable launched TV Call Display, a new product enhancement to its Rogers Home Phone and Rogers Digital TV service allowing incoming calls to be displayed and managed on customers’ TV screens, including the option to send calls directly to their Rogers voicemail with their TV remote control.
• Cable introduced the Rogers On Demand Online portal, Canada’s definitive online destination for primetime and specialty TV programming, movies, sports and web-only extras. By expanding the TV experience to the Internet, our Cable, Internet and Wireless customers can now enjoy their TV anywhere, anytime with a rapidly expanding library of top programming wherever they have an Internet connection in Canada.

Cable

Cable continues to lead the Canadian cable industry in digital penetration. The digital cable subscriber base grew by 7% from December 31, 2008 to December 31, 2009, to 72% of television households, compared to 67% as at December 31, 2008. Increased demand from subscribers for digital content, HDTV and personal video recorder (“PVR”) equipment continue to drive the growth in the digital subscriber base.

Summarized Subscriber Results:

                               Three months ended       Twelve months ended
    (Subscriber                    December 31,              December 31,
     statistics in        ---------------------------------------------------
     thousands)              2009    2008(1)   Chg     2009    2008(1)   Chg
    -------------------------------------------------------------------------

    Cable homes passed(2)   3,635     3,547     88    3,635     3,547     88

    Television
      Net additions
       (losses)(3)              3         4     (1)     (24)        9    (33)
      Total Television
       subscribers(4)       2,296     2,320    (24)   2,296     2,320    (24)

    Digital Cable
      Households, net
       additions               39        61    (22)     114       191    (77)
      Total households(4)   1,664     1,550    114    1,664     1,550    114

(1) Certain of the comparative figures have been reclassified to conform to the current year presentation.
(2) Since December 31, 2008, a change in subscriber reporting resulted in a cumulative decrease to cable homes passed of approximately 171,000.
(3) During 2008, a reclassification of certain subscribers had the impact of increasing television net additions by approximately 16,000. In addition, television net subscriber additions for the twelve months ended December 31, 2008 reflect the impact of the conversion of a large municipal housing authority’s cable TV arrangement with Rogers from a bulk to an individual tenant pay basis, which had the impact of reducing television subscribers by approximately 5,000.
(4) On June 12, 2008, we acquired approximately 16,000 television subscribers, 11,000 high-speed Internet subscribers, 6,000 digital cable households and 2,000 cable telephony lines from Aurora Cable. These subscribers are not included in net additions for the twelve months ended December 31, 2008.

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