Shaw revenues dip in second quarter results

Shaw Communications Inc. announced a fall in revenues and earnings for the second quarter of 2022, the company reported Wednesday. The results were announced through a news release rather than a conference call. Revenues for the three months that ended Feb. 28 were $1.35 billion, down two per cent from the $1.38 billion reported in Q2 2021. Net income was $196 million, dropping 9.7 per cent from $217 million a year earlier. Shaw attributed the income decline to lower adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and a $27 million fair value gain on private investments from Q1. This was partially offset by lower income tax expenses. “Our team continues to execute on our strategic business priorities of delivering profitable growth while continuing to invest in the strength and breadth of our networks,” CEO Brad Shaw said in a statement accompanying the release of the results. “It is this solid and strategic foundation that, combined with Rogers, will deliver new and better technologies to more Canadians," he said, and referred to the CRTC's approval of the broadcasting asset transfer from Shaw to Rogers Communications Inc. as a "critical milestone." "We continue to work with and support Rogers in obtaining the remaining approvals, including Innovation, Science and Economic Development (ISED) and the Competition Bureau, and continue to target closing of the transaction in the first half of 2022.” In Q2 2022, Shaw added 16,900 new wireless customers, a steep decline from 2021’s 82,297. The company now has 2.19 million customers. Wireless revenue decreased 3.9 per cent to $323 million. Wireless service revenue grew 9.2 per cent due to continued subscriber growth, offset by lower average revenue per unit (ARPU) as the company continues to scale lower revenue. Second quarter ARPU decreased 1.1 per cent from 2021 to $36.43. Shaw said a jump in consumers signing up for bundles and migration to faster internet speeds continues to support internet revenue growth. Wireless postpaid churn of 1.46 per cent increased 21 basis points from Q2 2021. “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,” the firm said in a news release. Consumer wireline cable reported a drop of 24,592 for a total of 1.23 million subscribers. That is a smaller drop than Q2 2021’s 26,497. Satellite dropped 15,202 subscribers in 2022, larger than 2021’s 13,508, to bring total subscriptions to 542,092. Consumer internet subscriptions in 2022 increased to 1.89 million, a gain of 538, after posting a decline of 5,425 in 2021. Phone subscribers numbered 563,032, a decline of 15,005, not as bad as 2021’s 20,418 decrease. Business cable fell 469 subscriptions to 36,039 following an increase of 330 in Q2 2021. Satellite subscriptions were at 37,180, a fall of 2,462, higher than 2021’s 1,903. Business internet subscriptions jumped 338 to 182,961, a smaller increase than 2021’s 369. Wireline revenue generating units (RGUs) went down 58,100 compared to a decrease of 66,000 a year earlier. The modest gain in consumer internet was offset by falls in video, satellite and phone service. This led to consumer RGUs declining by 54,300 in the aggregate. In business service, internet RGUs increased while video, satellite and phone all decreased. Business RGUs fell by 3,800. Wireline revenue was $1.04 billion in the second quarter, a decrease of 1.3 per cent. Consumer revenue went down 2.4 per cent to $887 million as growth in internet revenue was offset by declines in video, satellite and phone subscriptions. Business revenue was $153 million, an increase of 5.5 per cent over the same period in 2021. –Reporting by Paul Park at ppark@thewirereport.ca and editing by Michael Lee-Murphy at mleemurphy@thewirereport.ca

Shaw revenues dip in second quarter results

News | April 13, 2022

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Shaw revenues dip in second quarter results

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