Rogers Cable. Highly clustered & upgraded cable systems

Transcription

1 Rogers Cable

2 Rogers Cable A leading Canadian cable provider: ~30% national share, 58% basic TV penetration & 5.2M cable service units ~91% of subscribers in 3 fibre-linked Ontario clusters (~66% in Toronto) 99% digital, cable telephony & Internet availability Highly upgraded cable plant (99% of Ontario systems at 860 MHz) Internet 30% Home Phone 14% Revenue Profile Television 56% Television Cluster (000's) Subscribers % of Total Toronto (GTA & SYD) 1, % Ottawa % Southwestern Ontario % Total Ontario 2, % Atlantic Canada % Total 2, % Ontario Atlantic Highly clustered & upgraded cable systems 2

3 Growth in New Cable Services High-Speed Internet 49% penetration of homes passed (84% of TV subs) Most speed - up to 150Mbps Most choice - Ultimate, Extreme, Express, Lite & Ultra Lite tiers Most services - premium offering with best in class & portal from Yahoo! Usage based billing (charges for usage above monthly allowances) 1,619 1,571 1,686 1,793 1,864 Digital TV Households 80% penetration of TV subs ~$20 incremental ARPU +475 channels in main markets +170 HD channels & growing Pioneer of digital simulcast 80 multicultural channels Most sports, ethnic & movies VOD & SVOD, time-shifting, whole-home PVR s, tablet TV 1,664 1,733 1,777 1,768 Cable Telephony 28% penetration of homes passed (49% of basic television subs) 1.07M telephony lines at 4Q12 Available in 99% of territory Bundled with cable, Internet, & wireless on single bill Robust small business offerings 937 1,003 1,052 1,074 1,465 1,550 1, Significant penetration of high-speed Internet, digital & home phone 3

4 Rogers On Demand Television Available to over 97% of digital cable homes On-demand library now exceeds 8,000 titles of movies, TV shows, specials & adult Rich library of prime-time episodic content (24, 30 Rock, Mad Men, MTV etc.) Studio agreements cover 95% of Hollywood output & growing Most release dates same as video stores Subscription Video On Demand for Movie Network/HBO, Super Channel, WWE, Treehouse, National Geographic, NFL, Family Channel, HGTV, Food Network & more Array of free content including karaoke, music videos, sporting events, & TV specials Leverages digital infrastructure with minimal incremental capital 4

5 Broadband Television Rogers Anyplace TV First Cableco in North America to launch aggregated TV Everywhere model extending TV subscription online Three tiers of content: 1) premium TV authenticated to Rogers cable subscription, 2) Rogers customer exclusive content & 3) sample layer available to all Canadians Strong performance across platforms: - ~500,000 registered users & growing - Available on desktop, smartphones, tablets & Xbox ,000 on demand assets on site & growing (nearly 7,000 hours), from +70 content providers - +1,100 movie titles (& growing), including new releases to rent through Anyplace TV Rentals online store Rapidly growing the service in 2012: - Continue extending Anyplace TV to multiple platforms - Building out offering for live sports events, news - Adding new content partners - Strong roadmap of enhanced features An innovative, multi-platform evolution of our TV service towards TV Everywhere: any content, any time, any place, any device 5

6 NEXTBOX 2.0 Watch TV anywhere with whole home PVR Watch live streaming TV on tablet New interactive program guide offers full HD, enhanced functionality, & advanced search capabilities Netbox 2.0 provides significantly enhanced user interface & functionality 6

7 Top Quartile Video Penetration Basic Penetration of Homes Passed 69% 59% 58% 56% 52% 42% 42% 35% 2nd highest basic cable television penetration in North America 79% digital penetration of television subscribers Digital subscribers receive enhanced choice & quality of service resulting in lower churn Incremental revenue from premium on demand & HD services Current migration to all digital allows for re-harvest of significant analog spectrum A North American leader in basic cable penetration At 3Q12 7

8 High-Definition Television Penetration High-Definition TV Customers 1, s % % % 7.1% 43% 4Q09 4Q10 4Q11 4Q12 HD Customers % of Digital Households 59% of digital households now subscribe to Rogers HD services (47% of all television subs) Incremental cable ARPU from HD customer >$20 over digital only & ~$40 over analog only Most HD movies & sports +170 HD channels & +1,100 HD titles on-demand 10x the HD content available from satellite Viewership of HD on-demand doubled in past year Full on-demand library of primetime episodics Strong HDTV subscriber growth driving higher television ARPU 8

9 Cable Financial Performance Revenue $3.4 $B Growth driven by subscriber additions & improvements in ARPU $3.2 $3.3 Higher ARPU from product bundling focus & selected price changes $2.9 $3.1 Slowing TSU additions & highly competitive markets impacting growth Operating Profit $1.6 $1.5 $1.4 48% $1.3 47% $1.2 45% 42% 41% 2013E ~48% $B Significant margin expansion over past five years Sharpened focus on operating expense efficiencies Circuit switched business divestiture complete Analog to digital conversion underway E 2013E Range Top-line & operating profit growth with strong margins 9

10 Rogers Business Solutions Primarily fiber provisioned business data & telephony solutions for medium & large enterprise, public sector & carrier segments Dedicated enterprise focused sales channel leveraging Rogers brand, core networks & multi product capabilities ~2,000 serviceable on-net & 20,000 near-net commercial buildings (representing ~34,000 target business customers) A suite of carrier class next-gen Ethernet & IP-based commercial services Positioned well to capitalize on a significant growth opportunity ~$350M revenue run rate with expanding margins ~15,000 existing enterprise customers ~50,000 broadband data circuits in service ~$4B readily serviceable enterprise market opportunity Leveraging Rogers core network, brand & strategic relationships as a preferred Canadian enterprise solutions provider 10