Shaw reports $33M increase in profit for Q1 2022

Shaw Communications Inc. saw a 20.2 per cent increase in its net earnings this quarter, jumping from $163 million in the same quarter last year to $196 million in its first quarterly report for 2022 for the three month reporting period ending in Nov. 2021. Shaw released its first quarterly earnings statement Wednesday and opted not to hold a quarterly earnings call with analysts. Shaw reported a revenue increase of 1.2 per cent for this quarter, for a total of $1.39 billion compared to revenues of $1.37 billion this time last year. Shaw’s report states that the company added approximately 55,600 new wireless customers this quarter, for a total of 2.1 million. Approximately 36,100 in the quarter were “driven by the continued momentum of Shaw Mobile.” Wireless revenue increased 4.7 per cent to $332 million, with wireless service revenue growing 11.2 per cent to $239 million and wireless equipment revenue decreasing by 8.8 per cent to $93 million as more consumers opted for “bring your own device” plans. The company attributed the wireless service revenue increase to “continued subscriber growth,” however, the report states the growth was partially offset by lower average revenue per unit (ARPU). ARPU saw a decrease of 3.4 per cent, to $36.95 per unit, from the year prior as Shaw continues to scale its lower-revenue Shaw Mobile customer base. “However, an increase in customers signing up for bundled offerings and Internet migration to faster speed tiers continues to support Internet revenue growth,” the report noted. Shaw said its wireline review is “in-line with the prior year,” bringing in $1.06 billion. Wireline revenue generating units (RGUs) declined by approximately 78,100, which is still an improvement over the prior year period which saw losses of 100,900 RGUs. Its wireline RGU change was “led by positive internet additions as customers continue to bundle their internet and wireless service together,” but was offset with declines in video, satellite and phone according to the report. In its wireline division, video cable subscribers decreased by 25,925 consumers and 602 businesses, video satellite subscribers decreased by 33,284 consumers and 448 businesses, while its phone subscribers saw a decline of 17,543 consumers and 1,304 businesses. Internet saw an increase of 500 subscribers each for both consumers and business. Those wireline trends also accounted for consumer revenue decreasing by 1.6 per cent for a total of $896 million this quarter. In its quarterly earnings report Shaw estimated that the closing of its acquisition by Rogers Communications Inc. is expected to occur in the first half of 2022, pending approval from the Competition Bureau, the CRTC which recently concluded a five-day hearing into its broadcasting assets, and the Department of Innovation, Science and Economic Development Canada which will examine the transfer of spectrum assets. “Our combination with Rogers will do more for the future prosperity of Canada than either company could achieve on its own... The resources and network of the combined company will help accelerate Canada’s digital economy and stimulate greater economic diversification in Western Canada,” Shaw CEO and executive chair, Brad Shaw, stated in the earnings report. – Reporting by Jenna Cocullo at jcocullo@thewirereport.ca and editing by Paul Park at ppark@thewirereport.ca

Shaw reports $33M increase in profit for Q1 2022

Broadcast | January 12, 2022

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Shaw reports $33M increase in profit for Q1 2022

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