CALGARY – New Freedom Mobile subscribers combined with slowing TV, Internet and landline customer losses helped to power Shaw Communications to its best quarterly subscriber performance in five years, the company said Wednesday.
For the three month period ended February 28, 2017, consolidated revenue from continuing operations of $1.30 billion increased by 13.3% from $1.15 billion year-over-year, while operating income before restructuring costs and amortization for the quarter of $540 million improved 7.6% over the comparable period. Excluding the results of the Wireless division, acquired on March 1, 2016, revenue for the quarter from the combined Consumer, Business Network Services and Business Infrastructure Services divisions was up 1.1% and operating income before restructuring costs and amortization for the quarter increased 1.8% year-over-year.
Shaw posted net income from continuing operations of $147 million, a 26.7% jump from $116 million in the second quarter of fiscal 2016, mainly due to the addition of the Wireless division and equity income from its investment in Corus in the current year and non-operating costs incurred in the prior year.
The company said that it lost 5,294 consumer subscribers between its cable and satellite TV, Internet and phone services (also known as revenue generating units or RGUs), a noteable improvement from over 41,000 RGU losses in the same period last year. Shaw credited the improvement to strong Internet subscriber growth linked to its WideOpen Internet 150 package, and added that slowing cable video and phone RGU losses are due to its strong bundle and value plan offerings.
“The strength of our wireline service, particularly our attractive Internet offering, is reflected in our Consumer division's improved subscriber results”, said CEO Brad Shaw, in a statement. “When combining our Internet offer with the new BlueSky TV experience, as well as our expanding wireless offering from Freedom Mobile, we are poised to create new value for our customers.”
Consumer division subscribers for the quarter were 1,650,789 cable video subscribers (down 7,124 year-over-year), 1,818,072 Internet customers (up 13,466) and 931,893 digital phone lines (down 7,025). Satellite customers totaled 770,294, a decrease of 4,611 year-over-year.
Business Network Services, which includes cable, satellite, Internet and phone, lost 1,603 subscribers to end the second quarter with a total of 571,003.
The Calgary-based giant also reported significant improvements in Wireless postpaid and prepaid subscribers, adding 33,427 RGUs as compared to just under 10,000 RGUs gained in the first quarter of fiscal 2017, finishing the period with a total 1,086,185 RGUs.
“As we continue the transition through our strategic plan, we will take bolder steps to unlock the power of a combined Shaw and Freedom Mobile to deliver greater value to customers and shareholders", added CEO Shaw.
More on Shaw's second quarter financial results is available here.
