CALGARY – Despite a jump in revenues, profits at Shaw Communications dropped for its fourth quarter and 2011 fiscal year ended August 31.
The Calgary-based media giant said Thursday that consolidated revenue for the three and twelve month periods of $1.18 billion and $4.74 billion, respectively, was up 26% and 28% over the comparable periods in 2010. It credited the improvement to the acquisition of Shaw Media, as well as price changes and growth in its cable and satellite divisions.
Net income, however, fell to $82.5 million for the quarter, down 32% from $121.6 million in the same period last year. Profits for fiscal 2011 were $472.8 million, an 11% drop from $532.7 million in 2010, due in large part to write downs from its now defunct wireless strategy.
Revenue in Shaw’s cable division was up almost 6% for both the three and twelve month periods to $784 million and $3.10 billion, respectively, primarily driven by price changes and growth.
Shaw lost 16,207 basic cable customers this quarter, bringing its year-end total to 2,289,775. The company ended the year with 1,819,388 digital customers, boosting its penetration of basic to 79.5% from 70.7% in 2010. It also reported 1,877,231 Internet customers, up by 13,528 from 2010, and 1,233,041 digital phone lines, which increased by 22,776 during the quarter.
In its satellite division, revenue was $208 million and $828 million for the three and twelve month periods, respectively, up 3% over each of the comparable periods in 2010. DTH growth was sluggish as Shaw Direct reported 908,883 customers at year end, an increase of just 806 from 2010.
Shaw Media reported quarterly revenue and operating income before amortization of $209 million and $12 million.
CEO Brad Shaw described 2011 as “a year of significant change”.
“I am pleased to report we ended the year meeting all of our financial commitments. Our performance in the fourth quarter was highlighted by solid operating income growth in the Cable division and margin improvement", he said in a statement. “The initiatives we undertook this past year, and decisions we executed on, have positioned us well to move forward in this rapidly evolving competitive landscape."
For more on Shaw’s 2011 financials, click here.
