fewer new customers were added during the year as discussed above.
We activated and upgraded fewer devices compared to 2012.
Total customer retention spending (including subsidies on handset
upgrades) was $939 million, 0.3 % lower than last year. The reduction
was mainly because fewer existing subscribers upgraded their hardware
as discussed above, which we partially attribute to the recent shift to
two year contracts.
Other operating expenses (excluding retention spending), were down
slightly from 2012, due to a continued focus on cost productivity
initiatives we are implementing across various functions.
Higher Adjusted Operating Profit
Adjusted operating profit was 3 % higher this year compared to last
year because of continued growth of wireless data, our improvements
in cost management and efficiency and lower volumes of hardware
sales and upgrades. Adjusted operating profit margin as a percentage
of network revenue increased this year to 46.8% from 45.6% in 2012.
(IN MILLIONS OF DOLLARS)
WIRELESS ADJUSTED OPERATING PROFIT
2013
2012
2011
$3,157
$3,063
$3,036
40 ROGERS COMMUNICATIONS INC. 2013 ANNUAL REPORT