Shaw adds 266,000 wireless customers as wireless revenue passes $1B
CALGARY – Shaw Communications announced this morning its wireless revenue for its full fiscal 2019, ended August 31, 2019, surpassed $1 billion for the first time as the company added 266,000 new Freedom Mobile customers, including 90,700 in the fourth quarter.
The meant wireless operating income before restructuring and amortization grew 45% year-over-year to over $205 million, as of August 31st.
On the wireline front, Shaw added 34,700 net broadband customers during the full year (11,400 in Q4), but saw 106,000 cable TV customers depart, a 24% steeper decline than in 2018.
Total fiscal 2019 consolidated revenue increased by 3% to $5.35 billion and operating income before restructuring costs and amortization increased 5.1% year-over-year to $2.16 billion.
“In all areas across our organization, we made significant progress in fiscal 2019… Through years of thoughtful and strategic capital investing, we have built a high quality, facilities-based wireless network that is capable of meeting the evolving needs of our customers and continuing to fuel Freedom’s momentum,” said Brad Shaw, CEO, in the press release.
“In our Wireline business, we have cemented our status as a technology leader with our BlueCurve and SmartSuite products. Throughout our digital transformation, we have made it easier to interact with our customers and to self-install our services. We also continue to work hard to streamline and simplify manual processes that improve the customer experience and day-to-day operations for our employees. This focus has played an instrumental role in executing our overall VDP (voluntary departure program), which is approximately 70% complete as at the end of fiscal 2019.”
The company also released guidance which was positively received by the markets, saying EBITDA will grow between 4% and 5% (not counting the effect of the new IFRS16 accounting rules. The company estimated capital expenditures would be flat at $1.1 billion and free cash flow in fiscal 202 would come in at $700 million.
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