CALGARY – Despite hinting at its future wireless service, Shaw was short on details around when and how it may eventually introduce a mobile offering.
“During fiscal 2010 we also plan to take initial steps to commence wireless activities, with build out planned over the next several years", said CEO and vice chair Jim Shaw, in a press release Thursday morning that detailed the company’s first quarter results.
However, when asked about wireless during a conference call with media and industry analysts on Thursday afternoon, Shaw would only confirm that the company is focused on “fundamental issues” around the project like exploring equipment options and ensuring that its wireless platform is solid.
“We bring a lot (of customers) to the party given that we’re the largest video provider in Canada”, Shaw said in answer to an analyst’s question. “We’re taking a careful approach at making sure that if we do do anything, we make the right move off the start.”
He also declined to say whether the company would seek a partner for its wireless initiative, noting that the $650 million that the company raised last November through an issue of senior unsecured notes means that it doesn’t necessarily need a partner.
“Shaw doesn’t need any funding, so it would be a question of whether they brought something to the table that would be of help to us”, Shaw said, offering tower or equipment sharing as examples.
When asked about the company’s interest in acquiring any of Canwest’s assets, Shaw would only say that he wouldn’t rule it out.
“We will always keep our options open”, he said. “We have not decided what we would do. It’s certainly something that we would consider given what Comcast is doing to enhance value.”
Consolidated service revenue at the Calgary-based cable and telecom company for the quarter was $906 million, up 11% over the same period last year, which the company attributed to customer growth and rate increases. Service operating income before amortization of $475 million improved 29% over the comparable period. Excluding a one-time CRTC Part II fee recovery, the increase in service operating income before amortization was almost 9%.
Net income was $114.2 million for the three month period compared to $123.5 million, while consolidated free cash flow was $165.4 million compared to $114.0 million for the same period last year.
Basic cable customers declined by 1,416 during the quarter, while digital cable customers grew by 88,259 to reach 1,409,983. Internet and digital phone lines increased by 36,242 to 1,744,577, and by 61,461 to 923,365, respectively.
Quarterly cable service revenue of $708.5 million was up 12.6% over the same period last year. Service operating income before amortization of $381.1 million, including a one-time Part II fee recovery, increased 25.5% over the comparable three month period from 2009.
Shaw Direct added 1,097 customers this quarter and as at November 30, 2009, its DTH customers totaled 902,038.
Service revenue in the satellite division was $197 million, up 5% over the comparable period last year. Service operating income before amortization for the quarter was $94 million compared to $65 million for the same period last year. Excluding the impact of the one-time Part II fee recovery, the growth was 4%.
– Lesley Hunter
