CALGARY – Stable growth across its key metrics helped Shaw close out its 2009 fiscal year on solid ground.
Consolidated service revenue for the year ended August 31, 2009 grew 9% over last year to reach $3.39 billion, while service operating income before amortization also improved by 9% to top $1.54 billion.
Basic cable subscribers grew 29,467 to 2.29 million, and digital penetration grew from 40% in 2008 to 57% as Shaw reached 1.29 million digital customers. The company also reported 1.67 million Internet customers and 830,000 digital phone lines. DTH customers for Shaw Direct topped 900,000.
Cable service revenue was up 11% for the year to $2.63 billion, and grew by 4% in the satellite division to $760 million, which the company attributed primarily to customer growth and rate increases.
"Our financial and operational results for the quarter and annual period demonstrate our ability to manage effectively in a challenging economic and highly competitive environment”, said CEO and vice chair Jim Shaw, in a statement. “Our prudent management approach enabled us to invest in the business and execute on our strategic initiatives providing customers with high quality innovative products, value pricing, and exceptional customer service.”
Net income for the year dropped to $535 million, compared to $672 million last year. Free cash flow for 2009 was $504 million, compared to $453 last year, which Shaw said was achieved through higher service operating income before amortization after taking into account almost $50 million of increased capital investment and the impact of the company becoming cash taxable during the current quarter.
Looking ahead, Shaw said that the company anticipates “steady growth” in fiscal 2010.
“Including the impact of a one-time CRTC Part II fee recovery, our preliminary view calls for consolidated service operating income before amortization to increase by 14% or more”, Shaw continued. “We plan to continue our rate of capital investment driving business growth and improvements, including implementation of new technologies to provide our customers with unprecedented choice and leading edge products.”
