Canadian cable and wireless operator Shaw Communications came away from its fiscal third quarter with the first boost in cable TV subscribers since 2010, and beat earnings estimates despite a hefty drop in net income.
The company on Wednesday reported revenue of $1.31 billion and earnings per share of 27 cents, topping analyst estimates of $997.42 million in revenue and EPS of 25 cents. Revenue was up 2.8 percent over $1.275 billion in the same quarter last year, though EPS was a fraction of the $1.44 it recorded in the same period in 2016.
Net income of $133 million also dropped drastically – down 81 percent – from $704 million the prior year. Shaw executives attribute this change primarily to the loss of prior year income from its discontinued Media and fleet tracking operations. Those changes aside, though, Shaw indicates net income from continuing operations actually increased by $90 million compared to the same quarter last year.
Shaw also notes it achieved the first growth in cable TV subscriber figures since 2010. The company says it added 20,000 internet subscribers, 12,000 cable video subscribers, and 6,000 satellite video customers. The net gain of 38,000 subscribers in its Consumer division represents a turnaround from losses of 47,000 subscribers in the third fiscal quarter last year. Shaw also grew its wireless business, adding 20,000 subscribers across both prepaid and postpaid.
“Strong subscriber growth in both cable video and internet reflects our continued focus on delivering leading customer service and innovative products to the market including WideOpen Internet 150 and BlueSky TV,” CEO Brad Shaw comments. “The recently announced acquisition of spectrum will add critical wireless capacity and capability to our network, adding to our foundation that will make us Canada’s leading connectivity provider.”
Shaw adds the company has built a long-term strategy to meet connectivity needs north of the border, which is evidenced by the roll out of the aforementioned WideOpen Internet 150 product, as well as the launch of BlueSky TV and its feature “TV you can talk to” functionality.
“Shaw’s business performance coupled with the recent announcements showcase an unwavering commitment to our growth strategy,” he concludes.
