CALGARY – Cable and media conglomerate Shaw Communications announced this morning consolidated revenue for the three and nine month periods of $1.33 billion and $3.90 billion, respectively, was up 4% and 3% over the comparable periods last year.
Total operating income before amortization of $585 million improved 3% over the comparable quarterly period and the year-to-date amount of $1.72 billion was up 6%, says the press release. Free cash flow for the three and nine month periods was $138 million and $543 million, respectively, compared to $203 million and $379 million for the comparable periods last year. Increased operating income before amortization and lower capital investment were the main drivers of the improvement for the year-to-date period, according to the release.
"Our third quarter results were solid as our executive team and our 14,000 employees continue to deliver value for all our stakeholders through a focus on disciplined growth and execution of our operating strategies,” said CEO Brad Shaw in the statement. “The quarter was highlighted with the closing of a number of the strategic transactions announced earlier in the year, including the acquisitions of ENMAX Envision and Food Network Canada, and the disposition of the Hamilton cable system and our interest in ABC Spark."
"During the quarter we continued to invest in our core business including the acceleration of certain strategic capital initiatives that reinforce our infrastructure advantage. The Anik G1 satellite also successfully launched in April and in late May Shaw Direct added over 140 channels to its offerings, primarily in HD. The investment in Anik G1 brings our customers enhanced choice in programming, including more local Canadian channels."
Net income of $250 million for the quarter ended May 31, 2013 compared to $248 million for the same period last year. Net income for the first nine months of the year was $667 million, compared to $628 million. The net income improvement in both current periods was due to increased operating income and a gain on the sale of the Hamilton cable system (a sale valued at $400 million) partially offset by increased income taxes.
Revenue in the cable division of $825 million and $2.45 billion for the current three and nine month periods increased 4% and 2%, respectively, over the comparable periods. Operating income before amortization for the quarter of $397 million was up 5% compared to the same quarter last year and the year-to-date period improved 7% to $1.19 billion, reads the release.
Satellite revenue of $218 million and $641 million for the three and nine month periods, respectively, compared to $211 million and $631 million in the same periods last year. Operating income before amortization for the current quarter was $72 million compared to $76 million last year and the year-to-date amount was up 1% from $216 million to $219 million.
Revenue and operating income before amortization in the Media division for the quarter of $307 million and $116 million, respectively, increased 4% and 2% over the same period last year. On a year-to-date basis Media revenue and operating income before amortization each improved 5%.
“Severe floods in late June impacted Shaw services in various locations across Southern Alberta. Technical, maintenance and customer care teams took immediate action to repair services for affected customers and proactive steps to maintain service and prevent any significant damage to Shaw infrastructure. The strength of the network redundancy and the tactical responsiveness ensured service interruptions were kept to a minimal period of time. Global News excelled in its extended special coverage of the crisis, establishing itself as the authority of information for the community,” noted the company’s release, responding to the massive recent Alberta flood.
"As we enter the final quarter of 2013 we are seeing continued positive momentum across our divisions with ongoing revenue growth and overall management of promotional activity and costs,” added CEO Shaw. “As a result, we are increasing our fiscal year 2013 guidance and expect free cash flow to range from $590 to $600 million. Our investments in brand, innovation and technology, and service enhancements are driving sustainable growth and customer retention. Given the improvement in free cash flow and continued favorable market conditions, our Board plans to target dividend increases of 5% to 10% over each of the next two years."
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