CALGARY — Thanks to its Shaw Mobile bundling strategy, leveraging its Fibre+ Internet customer base, Shaw Communications reported record wireless subscriber growth with approximately 101,000 net additions in the first quarter of 2021, the company announced today.
The wireless net additions included a 31% year-over-year increase in postpaid net adds to 87,300, as well as 13,700 prepaid net additions in the quarter ended November 30, 2020. The company enjoyed continued growth in wireless service revenue of 9.7% year-over-year to $215 million over the comparable period in fiscal 2020.
Shaw’s wireless adjusted EBITDA totalled $75 million in the first quarter of 2021, a 5.6% improvement over the comparable quarter in the previous year, which the company said was due to service revenue growth partially offset by lower roaming revenue and investments in the Shaw Mobile launch (the service was launched July 30), including the expansion of Shaw’s retail footprint. During the first quarter of 2021, the company opened five additional Shaw-branded retail locations in British Columbia and Alberta, bringing the total number of wireless retail locations offering Shaw Mobile to approximately 150 stores.
“Since our entry into the wireless business almost five years ago (after purchasing Wind Mobile, now Freedom Mobile), our strategy has been focused on scaling our Wireless subscriber base and improving the overall customer experience. Throughout this period, we have made significant investments that have enabled us to be innovative and disruptive,” said Brad Shaw, executive chair and CEO,in the company’s press release.
“Connectivity matters more than ever, and our Shaw Mobile bundling strategy is a powerful combination of high quality, affordable wireless services with our robust Fibre+ Internet offering which is clearly resonating with our Internet customers. Our bundling initiatives, combined with a sharp focus on effective cost management across our entire organization, delivered record Wireless customers and a Wireline adjusted EBITDA margin that exceeded 50% in the quarter.”
Overall, Shaw’s financial performance was stable during the first quarter of 2021 compared to the same quarter of 2020, with the company reporting its consolidated revenue decreased by 0.9% to $1.37 billion, consolidated net income increased 0.6% to $163 million, and adjusted EBITDA increased 3.2% year-over-year to $607 million.
During the first quarter of 2021, Shaw’s wireline revenue remained stable with consumer revenue decreasing 1.4% to $911 million and business revenue increasing 1.4% to $145 million compared to the prior year. The company’s wireline adjusted EBITDA increased 2.9% year-over-year to $532 million and adjusted EBITDA margin increased 190-basis points to 50.4% due to proactive base management and strong cost discipline, partially offset by lower consumer revenue, the company said. However, wireline customers declined by approximately 100,900 RGUs in the quarter compared to a loss of approximately 57,500 in the first quarter of fiscal 2020. “The current quarter includes consumer internet RGU (revenue generating units) decline of approximately 15,100. The mature products within the consumer division, including video, satellite and phone declined in the aggregate by 91,800 RGUs,” reads the release.
“We have successfully navigated the last ten months of pandemic-related challenges, including the launch of Shaw Mobile, providing a strong bundled value proposition for customers and we are proud of the strength of our facilities-based networks, which are not just the core of our digital infrastructure — they are the backbone of our social and economic well-being. While there has been positive news related to the potential efficacy and the timeframe for availability of Covid-19 vaccines in our country, we are still faced with a period of uncertainty, particularly the impacts regarding the most recent restrictions on several areas of our business. However, we continue to believe that connectivity is critical and we remain focused on growing our bundled customers and effectively managing costs in this environment,” says the release.
For more information about Shaw’s Q1 2021 financial results, please click here.
