CALGARY – Shaw Communications Inc. reported today that consolidated revenue for its second quarter and for the year to date was $1.25 billion and $2.57 billion, respectively, each up 2% over the comparable periods last year.
Net income was $182 million for Q2 FY2013 and $417 million for the six months ended February 28, 2013, compared to $178 million and $380 million respectively for the same periods last year. Total operating income before amortization increased 9% to $538 million over the comparable quarterly period, and the year-to-date amount of $1.14 billion was up 8%.
Free cash flow for the three- and six-month periods was $161 million and $405 million, respectively, compared to $57 million and $176 million for the comparable periods last year. The company said increased operating income before amortization and lower capital investment during the first half of 2013 were the main drivers of the improvement.
“Our second quarter financial results were solid reflecting the underlying strength across our businesses as we focus on sustainable and profitable growth,” CEO Brad Shaw said in a release. “We remain focused on providing an exceptional customer experience as we continue to leverage our leading network infrastructure and high quality content to enhance and expand innovative product offerings for our customers.”
Revenue in the Shaw’s cable segment of $814 million and $1.62 billion for the current three- and six-month periods increased 1% and 2%, respectively, over the comparable periods. Operating income before amortization for the quarter of $393 million was up 12% compared to the same quarter last year and the year-to-date period improved 8% to $789 million.
Satellite revenue of $209 million and $423 million for the three- and six-month periods, respectively, compared to $211 million and $420 million in the same periods last year. Operating income before amortization for the current quarter was $73 million compared to $71 million last year and the year-to-date amount was up 5% to $147 million.
In the media division, revenue and operating income before amortization for the quarter of $249 million and $72 million, respectively, each increased 3% over the same period last year. On a year-to-date basis media revenue improved 5% and operating income before amortization was up 7%.
Shaw said the company’s recent transactions with Rogers and Corus are expected to provide estimated net proceeds to of approximately $800 million, of which he says the company plans to invest up to $500 million back into Shaw’s core business for the next three fiscal years. Those include the completion of its Calgary data centre, which suffered severe damage from a fire in July 2012, further digitization of Shaw’s network and additional bandwidth upgrades, development of IP delivery of video, expansion of its WiFi network, and new product offerings related to Shaw Go and other applications.
Last October, Shaw announced preliminary guidance and with its Q2 FY2013 results announced it is updating its free cash flow guidance. “With the first half of the year behind us and modest positive variances across service operating income before amortization, capital investment and interest and cash taxes, we now expect free cash flow to approximate $550 million. We expect our capital spend to ramp up during the last half of the year with the annual spend still expected to decline marginally from 2012 levels,” said Shaw.
