Shaw Communications Inc., the country’s largest cable television provider, has announced its financial results for the fourth quarter and fiscal year ending August 31, 2011.
The company reported consolidated revenue of $1.18 billion during the final quarter of the year, up 26% over the same period in 2010. Revenues for the entire 2011 fiscal year were $4.74 billion, up 28% from 2010.
The large increase in revenues was primarily due to the aquisition of Shaw media coupled with price increases and growth in the number of subscribers in the Cable and Satellite divisions.
Operating income for the quarter and the year were up 12% and 15% to $476 million and $2.03 billion respectively. Net income from continuing operations was $166.2 million and $562.1 million for the three and twelve months ended August 31, 2011, respectively, compared to $122.6 million and $533.8 million for the same periods last year. The drop in net income came from Shaw's decision to write down the value of assets related to the cancelled wireless business
"I am pleased to report we ended the year meeting all of our financial commitments. Our performance in the fourth quarter was highlighted by solid operating income growth in the Cable division and margin improvement." said Shaw CEO Brad Shaw.
In the Cable division, revenues were up almost 5.6% for each of the three and twelve month periods, respectively, to $784 million and $3.10 billion. The growth in profits was attributable to price increases and growth in the number of Shaw subscribers signing up for digital cable, digital phone, and high speed internet.
For the year, Shaw lost 50,988 basic cable subscribers which was more than offset by the addition of 166,369 digital cable subscribers, 54,217 internet subscribers and 136,534 digital phone subscribers.
In the Satellite division revenue was $208 million and $828 million for the three and twelve month periods, respectively, up 3% over each of the comparable periods.
The number of direct-to-home satellite customers grew by a modest 3,087 customers during the to year to 908,883.
Quarterly revenue and operating income before amortization in the Media division was $209 million and $12 million, respectively. Revenue and operating income before amortization for the period from October 27, 2010 to August 31, 2011 was $891 million and $252 million, respectively. For informational purposes, on a comparative basis to last year, Media revenues for the full twelve month period were up approximately 7% to $1.07 billion and operating income improved 25% to $325 million.
The following are Shaw subscriber counts as of August 31, 2011 (the number in parenthesis is from August 31, 2010).
- Basic cable customers - 2,289,775 (2,333,438) down 2.2%
- Digital customers - 1,819,388 (1,650,565) up 10.1%
- Internet customers - 1,877,231 (1,818,347) up 3.0%
- Digital phone lines - 1,233,041 (1,096,306) up 12.5%
- DTH satellite customers - 908,883 (905,7960) up 0.3%
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