CALGARY – Consolidated revenue at cable TV, internet, satellite TV and media company Shaw Communications for the three month period of $1.28 billion was basically flat (down 0.5%) compared to the same period last year.
Revenue for the nine month period ended May 31, 2012 of $3.79 billion was up 6% over last year. Total operating income before amortization of $567 million declined 3% over the comparable quarterly period while the year-to-date amount of $1.63 billion improved almost 4%.
Free cash flow for the three and nine month periods was $203 million and $379 million, respectively, compared to $240 million and $568 million for the same periods last year. Lower operating income before amortization in the current quarter, along with higher capital investment in both the current three and nine month periods were the main drivers of the decrease.
On the subscriber side however, the company has lost just over 54,000 basic cable customers during the first three quarters of the fiscal year, but still has well over 2.2 million cable customers. That loss was offset by the conversion of over 106,300 customers to digital cable subscribers. On the high speed Internet side, the company saw a first ever, if tiny (429 subs), decrease in customers, during the quarter. It has over 1.9 million internet customers and has added over 28,000 so far in the first nine months. Shaw also saw a 1,800-subscriber decrease in its satellite TV customers in the quarter to just over 908,000. As for telephony customers, it is still gaining there, signing up 106,000 in the fiscal year so far.
"During the quarter we focused on sustainable growth initiatives, while maintaining our commitment to technology, customer service and value leadership. We continued to drive innovation with our Wi-Fi build, now offering EXO Wi-Fi at over 1,500 sites in Calgary, Edmonton, Vancouver, Victoria and Winnipeg, and our DNU project, allowing us to provide leading internet speeds, more HD channels and an exceptional variety of VOD movies and TV shows,” said company CEO Brad Shaw in the company’s press release. “Our EXO product offerings are popular with customers and we are continuing to add staff to our customer service centres to support an exceptional customer experience. We also saw solid performance across our leading portfolio of specialty services."
Net income from continuing operations of $248 million for the quarter ended May 31, 2012 compared to $203 million or the same period last year. Net income from continuing operations for the first nine months of the year was $628 million, compared to $392 million last year.
Revenue in the cable division of $794 million and $2.39 billion for the current three and nine month periods increased 1% and 3%, respectively, over the comparable periods. Operating income before amortization for the quarter and year-to-date periods of $377 million and $1.11 billion, was down 4% and 1%, respectively, compared to the same periods last year. Financial results improved compared to the second quarter with margins increasing from 43.8% to 47.5%.
Revenue in the Media division for the three and nine month periods was $295 million and $836 million, respectively, and operating income before amortization was $114 million and $304 million. The quarterly amounts were down 5% and 3%, respectively, compared to the same period last year, due to a tough ad market.
"As we enter the final quarter of fiscal 2012 we are on track to achieve our free cash flow guidance of approximately $450 million. We remain focused on the long term profitability of our assets and will continue to implement cost savings, execute on operational efficiencies, and prudently manage our capital investments building value for all of our stakeholders,” added Shaw.
