CALGARY – Shaw Communications ended the fiscal year on a high note Thursday, after posting double digit profits for both the fourth quarter and annual period ended August 31, 2014.
Net income jumped 64% to $192 million for the quarter and rose 13% to $887 million for the 2014 fiscal year. The company said that the current periods benefitted from higher operating income before amortization and restructuring costs, lower amortization and interest expense and improved net other costs and revenue, partially offset by higher income taxes. On an annual basis, the impact of the aforementioned items was partially reduced by restructuring costs.
Consolidated revenue for the three and twelve month periods of $1.26 billion and $5.24 billion, respectively, was up 1% and 2% over the comparable periods last year. Total operating income before restructuring costs and amortization of $525 million improved 6% over the comparable quarter, while the annual amount of $2.26 billion increased 2% over the prior year.
Free cash flow for the three and twelve month periods of $143 million and $698 million, respectively, improved from $61 million and $604 million for the same periods last year.
Revenue in Shaw’s Cable division of $837 million and $3.36 billion for the current three and twelve month periods improved 2% and 3%, respectively, over the comparable periods. Operating income before restructuring costs and amortization for the quarter of $412 million increased 4% over the same quarter last year and the twelve month period was up 3% to $1.63 billion.
Shaw Cable ended the year with 1,957,629 video subscribers, 1,930,401 Internet customers and 1,375,334 digital phone lines. During the quarter, Video subscribers dropped by 20,166, Internet customers increased by 11,983, and digital phone lines grew by 1,114.
Satellite revenue of $220 million and $878 million for the three and twelve month periods, respectively, increased from $219 million and $860 million in the same periods last year. Operating income before restructuring costs and amortization for the current quarter was $72 million compared to $66 million last year and the annual amount of $277 million compared to $285 million in the prior year.
Shaw Direct ended 2014 with 880,623 DTH customers after losing 6,606 subscribers in the fourth quarter.
Quarterly revenue in the Media division of $231 million was consistent with the same quarter last year while operating income before restructuring costs and amortization of $41 million improved from $34 million in the comparable period. On an annual basis, Media revenue dipped to $1.10 billion compared to $1.11 billion last year, while operating income before restructuring costs and amortization was unchanged at $353 million.
CEO Brad Shaw said that the company's results reflect “the strength of our business”.
“Our investments in programming, technology and innovative products combined with our focus on exceptional customer experience and operational efficiencies continues to drive profitability and long term growth", he said in a statement.
