Rogers Reports Fourth Quarter 2008 Financial and Operating Results

TORONTO - Rogers Communications Inc. today announced its consolidated financial and operating results for the three and twelve months ended December 31, 2008.

Fourth Quarter Consolidated Revenue Grows 9% to $2.9 Billion;

Adjusted Operating Profit Grows 1% to $968 Million as Strong Double-Digit Operating Profit Growth at Cable is Partially Offset by Acquisition and Retention Costs From Successful Smartphone Campaign at Wireless and Advertising Revenue Declines at Media;

Wireless Generates Further Improvements in ARPU and Churn, While Cable Drives Continued Year-Over-Year Margin Expansion;

Consolidated Net Loss Reflects Non-Cash Impairment Charge of $294 Million Relating to Conventional Television Assets Resulting from Recessionary Declines in Advertising Revenues;

Rogers Board Approves 16% Increase in Annual Dividend and Renewal of $300 Million Share Repurchase Program for 2009

Highlights of the fourth quarter of 2008 include the following:

- Generated growth in quarterly revenue of 9%, while adjusted operating profit grew 1% to $968 million as strong double-digit operating profit growth at Cable is partially offset by acquisition and retention costs from the successful smartphone campaign at Wireless and advertising revenue declines at Media.

- Wireless subscriber net additions totalled 199,000, with higher-value postpaid net additions of 158,000. Postpaid monthly ARPU (average revenue per user) increased 2% year-over-year to $74.71, driven in part by the 36% growth in data revenue to $262 million, representing approximately 18% of network revenue, while churn was further reduced to 1.12%.

- Wireless activated more than 400,000 smartphone devices during the quarter. Approximately 40% of these activations were to subscribers new to Wireless with the other 60% being to existing Wireless subscribers who upgraded devices, committed to new term contracts, and in most cases attached both voice and monthly data packages which generate considerably above average ARPU. The results of this successful smartphone campaign drove significantly higher acquisition and retention costs at Wireless.

- Wireless unveiled even faster speeds on its 3.5G next generation HSPA network, with 7.2 Mbps speeds now available from coast-to-coast to more than 75% of the Canadian population. Rogers' 3.5G network ranks amongst the fastest mobile networks anywhere in the world and allows customers to communicate in innovative ways with mobile multimedia, download large files ultra-fast and utilize Internet speeds on the go that are similar to a standard broadband connection.

- Fido launched new branding and a suite of straightforward 'all-in' plans aimed at the value oriented consumer segment that include usage alerts, easy price plan switching and the option of no term contract.

- Cable's Internet subscriber base grew during the quarter by 19,000 to 1.6 million, and digital cable households increased by 61,000 to reach 1.6 million, of which more than 568,000 households now receive high-definition television ("HDTV") services.

- Cable ended the quarter with 840,000 residential voice-over-cable telephony lines, reflecting net additions of 40,000 lines for the quarter. This brings the total penetration of cable telephony lines to 36% of basic cable subscribers, up from 29% at December 31, 2007.

- Rogers recorded non-cash impairment losses on goodwill, intangible assets and other long-term assets totalling $294 million related to its conventional television business to adjust its carrying value to reflect a lower assessment of fair value amidst recent recessionary declines in advertising revenues.

- At December 31, 2008 Rogers had approximately $1.8 billion in available credit under its $2.4 billion committed bank credit facility that matures in July 2013. This liquidity position is also enhanced by the fact that our earliest scheduled debt maturity is in May 2011. This financial position provides us with substantial liquidity and flexibility.

- Rogers also announced today that its Board of Directors has approved a 16% increase in the annual dividend to $1.16 per share effective immediately, and that it has approved the renewal of a normal course issuer bid ("NCIB") to repurchase up to $300 million of Rogers shares on the open market during the next twelve months.

- Rogers' founder, President and Chief Executive Officer Edward S. "Ted" Rogers, passed away on December 2, 2008. Alan Horn, Chairman of the Board of Rogers Communications Inc., was appointed by the Board to serve as acting Chief Executive Officer as the Board performs a search, considering internal and external candidates, for a permanent CEO.

"In December 2008, we mourned the passing of the Company's founder and Chief Executive Officer, Ted Rogers," said Alan Horn, Chairman and acting Chief Executive Officer of Rogers Communications Inc. "Ted Rogers was one of a kind who built this company from one FM radio station nearly 50 years ago into what is today Canada's largest wireless, cable and media company. His absence has been felt deeply during this difficult time by everyone at Rogers and he will be sadly missed, but never forgotten."

"Generating nine percent top line growth in the face of the increasingly challenging economic backdrop is a respectable performance for Rogers," continued Alan Horn. "Our Wireless and Cable businesses continue to generate good subscriber growth, which speaks to the quality and utility of our products. Our operating results also reflect the large but successful investment our Wireless business again made this quarter in activating a very significant number of smartphone customers who will in turn provide higher than average revenue per customer and lower churn in subsequent periods." Horn concluded by saying "The increased dividend and renewal of our share buyback program for 2009, which were both announced today, combine to provide for a balanced and tax efficient allocation of a portion of the free cash flow we expect to generate this year and underline our Board and management's continued confidence in the strategic position of the Company."

This earnings release should be read in conjunction with our 2007 Annual MD&A and our 2007 Annual Audited Consolidated Financial Statements and Notes thereto, as well as our 2008 quarterly interim financial and other recent securities filings available on SEDAR at www.sedar.com. As this earnings release includes forward-looking statements and assumptions, readers should carefully review the sections of this release entitled "Caution Regarding Forward-Looking Statements, Risks and Assumptions". In this earnings release, the terms "we", "us", "our", "Rogers" and "the Company" refer to Rogers Communications Inc. and our subsidiaries, which are reported in the following segments:

- "Wireless", which refers to our wireless communications operations, including Rogers Wireless Partnership ("RWP") and Fido Solutions Inc. ("Fido");

- "Cable", which refers to our wholly-owned cable television subsidiaries, including Rogers Cable Communications Inc. ("RCCI") and its subsidiary, Rogers Cable Partnership; and

- "Media", which refers to our wholly-owned subsidiary Rogers Media Inc. and its subsidiaries, including Rogers Broadcasting, which owns a group of 52 radio stations, the Citytv television network, the Rogers Sportsnet television network, The Shopping Channel, the OMNI television stations, and Canadian specialty channels including The Biography Channel Canada, G4TechTV and Outdoor Life Network; Rogers Publishing, which publishes approximately 70 magazines and trade journals; and Rogers Sports Entertainment, which owns the Toronto Blue Jays Baseball Club ("Blue Jays") and Rogers Centre. Media also holds ownership interests in entities involved in specialty television content, television production and broadcast sales.

Substantially all of our operations are in Canada. "RCI" refers to the legal entity Rogers Communications Inc., excluding our subsidiaries.