CALGARY – Led by its cable division, second quarter revenue and profits saw increases topping 3% at Shaw Communications.
Consolidated revenue for the three months ended February 29, 2012 were $1.23 billion, up 2.9% from the same period last year, while total operating income before amortization dropped 2% to $493 million.
Net income from continuing operations increased 3.5% to $178 million from $172 million for the same period last year. Excluding the non-operating items, net income from continuing operations would have been $178 million compared to $171 million year-over-year.
Rate increases and customer growth in Internet and digital phone helped to drive up Cable revenue 4.6% to $804 million. Shaw lost 9,946 basic cable subscribers to end the quarter with 2.26 million. Digital cable subscribers grew 46,564 to 1.93 million; Internet customers increased to 1.91 million; and digital phone lines, including pending installs, were 1.31 million.
Revenue in the Satellite division was $211 million, up 3.4% from the same quarter last year primarily due to rate increases. Shaw Direct ended the quarter with 910,688 customers, a net gain of 1,274 customers during the quarter.
Revenue at Shaw Media dipped 0.8% to $242 million mainly due to lower advertising revenues.
Citing an anticipated marginal decline in operating income in its Cable division, modest growth in Satellite, and flat operating income before amortization at its Media business, Shaw revised its 2012 guidance to include a drop in free cash flow of approximately $450 million.
"We continue to execute on our strategic initiatives in this highly competitive environment, focusing on technology, customer service and value leadership”, said CEO Brad Shaw, in a statement. “For the remainder of this year we plan to continue to execute on and invest in our strategic initiatives and focus on sustainable growth.”
