CALGARY — Shaw Communications today announced its financial results for the second quarter of its 2022 fiscal year, reporting year-over-year decreases in its consolidated revenue, adjusted EBITDA and net income.
For the quarter that ended February 28, 2022, Shaw’s overall revenue decreased by 2% to $1.36 billion, adjusted EBITDA dropped slightly by 0.8% to $632 million, and net income fell 9.7% to $196 million, compared to the same quarter of fiscal 2021.
During Q2 2022, Shaw added 16,892 new wireless customers, consisting of 8,632 postpaid net additions and 8,260 prepaid additions. This is notably less than the company’s wireless net additions in the same quarter of 2021, when Shaw added 82,297 new wireless customers, consisting of 75,069 postpaid net additions and 7,228 prepaid net additions.
“Postpaid net additions were down compared to the prior year due to factors including increased wireless competition which is typical during the holiday season, a limited supply of key devices and bundle adjustments to Shaw Mobile plans effective mid-November,” reads Shaw’s press release announcing the company’s Q2 2022 financial results.
Shaw’s wireline subscribers declined by 58,081 in the second quarter of 2022, compared to a loss of 66,030 in Q2 2021. The decline in Q2 2022 included a wireline subscriber loss on the consumer side of 54,261 and a business subscriber loss of 3,820. Shaw enjoyed modest gains in both consumer and business Internet subscribers of 538 and 338, respectively, in the quarter.
Overall wireline revenue in Q2 2022 decreased 1.3% to $1.04 billion and wireline adjusted EBITDA decreased 5.7% to $509 million, compared to Q2 2021.
“Consumer (wireline) revenue of $887 million decreased 2.4% compared to the prior year as growth in Internet revenue was offset by declines in Video, Satellite and Phone subscribers and revenue. Business (wireline) revenue of $153 million increased 5.5% year-over-year with Internet revenue growth and continued demand for the Smart suite of products,” the release says.
Looking at Shaw’s revenue by segment, the company’s Q2 2022 overall wireless revenue decreased 3.9% to $323 million, compared to the same quarter of 2021. However, its wireless service revenue specifically increased 9.2% to $238 million “due to continued subscriber growth, partially offset by lower [average revenue per user] as the company continues to scale its lower revenue Shaw Mobile customer base,” the press release says.
Shaw’s second quarter wireless adjusted EBITDA [earnings before interest, tax, depreciation and amortization] increased 26.8% year-over-year to $123 million. “The increase in adjusted EBITDA is mainly due to continued service revenue growth and improved equipment margins as well as the favorable margin impact from lower equipment sales relative to total wireless revenues in the current quarter,” the release says.
Shaw said its net income decrease in Q2 2022 was “primarily due to lower adjusted EBITDA compared to a year ago and a $27 million fair value gain on private investments recorded in the prior quarter, partially offset by lower income tax expense.”
After the second quarter ended, the CRTC approved Rogers Communications’ $26-billion acquisition of Shaw, at least as far as the broadcasting side of the transaction goes.
Brad Shaw, executive chair and CEO of Shaw, is quoted in the company’s press release as calling the CRTC approval “a critical milestone regarding our combination with Rogers Communications Inc.”
Shaw added: “We continue to work with and support Rogers in obtaining the remaining approvals, including Innovation, Science and Economic Development Canada (ISED) and the Competition Bureau, and continue to target closing of the transaction in the first half of 2022. We recognize that we can do so much more by coming together and reiterate our continued commitment to work with Rogers to close the transaction while delivering the benefits that the combined entity will provide to all Canadians.”
