Shaw Communications Inc., the country’s largest cable television provider, has announced its financial results for the first quarter of its fiscal year ending November 30, 2010.
The company reported revenue for the three month period was $1.08 billion, up 19% over the same period last year. The big increase in revenue was due primarily to increased cash flow from the new Shaw Media division.(formerly CanWest Global Communications).
Operating income before amortization at the company was $473.4 million down slightly from 475 million a year earlier.
"Our performance for the first three months has us off to a solid start for the year. Our financial results include a partial quarter for our new Media division" said CEO Brad Shaw.
In the Cable division, revenues were up 7% for the September to November time period to $758 million while service revenue in the satellite division was up 3% over the comparable period last year to $206 million.
The growth in revenues was primarily due to price increases and growth in the number of Shaw subscribers who are signing up for digital cable, digital phone, and high speed internet. Shaw's Digital penetration of Basic is now 73.6%, up from 70.7% and 56.7% at August 31, 2010 and 2009, respectively.
While the number of Shaw analog cable customers and Shaw Direct actually fell slightly in the quarter - 7,542 and 1,539 respectively), the number of digital cable, digital phone and high speed internet customers increased 62,216, 49,842 and 18,752 respectively.
The following are Shaw subscriber counts as of November 30, 2010.
- Basic cable customers - 2,326,766
- Digital customers - 1,713,135
- Internet customers - 1,837,618
- Digital phone lines - 1,146,148
- DTH satellite customers - 904,257