More cost savings, more flexibility
It is challenging to substantially grow our revenue in the face of increasing competition and changing technology. So, in addition to strategies to protect and increase revenue, we’re always looking for opportunities to
save money.
Each dollar of expenses we save helps the bottom
line. Last year, for example, we reduced our operating and capital expenses by $150 million, which
resulted in a $57 million increase in distributable cash, despite lower revenues.
The savings we achieved in 2009 were largely the result of the organizational restructuring we
undertook at the beginning of the year. Although saying goodbye to 500 colleagues was a very
difficult and emotional decision, it was necessary to generate the free cash flow needed to reinvest
in infrastructure projects and retain our customers. The restructuring
not only helped us reduce costs, it also allowed us to be more flexible
and nimble in the way we serve customers. We also achieved savings
in 2009 by improving our procurement practices, consolidating real
estate space, and by employing overall cost constraints.
Improving our efficiency
In spite of the savings we have worked hard to achieve, we have further
to go. To generate the funds needed to reinvest in projects, like our
FibreOP program, we must find new ways to operate that will lower
our costs.
In 2010, we plan to continue to deliver savings. The consolidation of our
contact centres in Atlantic Canada from 16 locations to five, which we
announced last fall, will contribute to this end. We will also find savings
in operational efficiencies through further real estate consolidation,
implementing rigorous sourcing and purchasing practices, and improved
employee performance management.
