CALGARY – Shaw Communications Inc. recorded a profit of $128 million in the third quarter ended May 31, 2008 compared to $92 million for the same quarter last year, according to financial results released Friday.
The income figures included non-operating items, including reductions in enacted income tax rates. Excluding the non-operating items, net income for quarter was $117 million compared to $86 million in the same period last year.
Consolidated service revenue reached $792 million in the quarter, a 3% increase from the same period last year. Total service operating income before amortization was $356 million, up 15% from the same period a year earlier, while funds from operations increased to $311 million for the quarter compared to $259 million a year earlier.
“We are pleased with the growth in all of our products, and particularly digital phone. In just over three years since the launch of this product, penetration of digital phone lines now stands at 28% of basic customers who have the service available to them,” said Shaw CEO Jim Shaw. “Our digital phone footprint continues to grow and the service is available to over 90% of homes passed. We also recently expanded the product offering and now have three levels of service to appeal to an even larger customer base.”
Shaw’s digital phone footprint grew in the quarter with launches in Prince Albert and Swift Current, both in Saskatchewan; Banff, Alberta; as well as continued expansion on Vancouver Island, British Columbia. The service is now available to over 90% of homes passed.
During the quarter, digital phone lines grew by 57,700 to 549,932, digital TV customers increased by 32,658 to 883,300 and Internet customers from 23,185 to 1,541,177. The communications company also added 2,495 basic cable TV customers in the quarter to reach 2,243,998. DTH customers increased 4,686 to 890,792.
Shaw proclaimed that “success in executing on all elements of our strategy” was behind the growth. “The variety, strength, and value of our products, high quality customer service, and effective operational and financial management by Shaw’s strong leadership team continues to produce solid results for our shareholders,” he added.
Service revenue in the cable division was up 15% for the three-month period to $608 million, due mainly to customer growth and rate increases. Service operating income before amortization improved 19% to $294 million for the quarter.
Service revenue in the satellite division was $184 million in the quarter, up 5% over the same period last year, primarily because of rate increases and customer growth. Service operating income before amortization for the three-month period was $62 million compared to $64 million last year.
Shaw said he was unable to comment on wireless at this time due to rules around the AWS spectrum auction, which is ongoing.
