Shaw Communications Inc., the country’s largest cable television and cable telephone provider, has announced its financial results for the third quarter of its fiscal year ending May 31, 2011.
The company reported revenue for the three month period was $1.82 billion, up 36% over the same period last year. The big increase in revenue was due primarily to icreased cash flow from the new Shaw Media division (formerly CanWest Global Communications) and higher cash flow from the cable division.
Operating income before amortization for the March to May time frame was $580 million, up 33% from 436 million a year earlier. For the first nine months of the year, revenues and operating income were up 28% and 16% to $3.56 billion and $1.55 billion respectively.
In a written statement, Shaw CEO Brad Shaw pointed to the company’s decision to streamline its organizational structure as a major reason for the improvement in net income. "Our third quarter financial results reflect a marked improvement over the second quarter and include a partial quarter of cost savings that resulted from the actions we undertook to streamline our organizational structure" said Shaw.
In the Cable division, revenues for the quarter were up 5% to $785 million while service revenue in the satellite division was up 3% over the comparable period last year to $210 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.
On a down note, the number of Shaw Basic cable customers contunes to fall. Shaw lost 13,577 basic cable subscribers during the quarter and has now lost 34,781 basic cable subscribers year to date.
The following are Shaw subscriber counts as of May 31, 2011. The numbers in parenthesis are subscribers at the end of last fiscal year August 31, 2010)
- Basic cable customers - 2,299,527 (2,334,308)
- Digital customers - 1,767,740 (1,650,919)
- Internet customers - 1,859,555 (1,818,866)
- Digital phone lines - 1,210,064 (1,096,306)
- DTH satellite customers - 908,077 (905,796)