CALGARY – Shaw Communications last week posted a revenue increase of 4.8% to $1.38 billion for the company’s third quarter of 2021, which ended on May 31st, compared to the same quarter in 2020.
The company also saw an increase of 5.4% to $642 million, in its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the quarter. Shaw’s Q3 results included what it called “incremental wireline consumer revenue of approximately $20 million related to the release of a provision following the CRTC decision on final aggregated third party internet access (TPIA) rates.”
“Our third quarter and year-to-date results reflect our balanced approach to profitable subscriber growth, improved customer experience, and solid execution throughout the organization”, said Brad Shaw, executive chair and CEO, in the release.
Notably, Shaw’s wireless division increased its contribution in Q3 2021 over last year’s quarter by 18.3%, or $46 million, which includes “significant Shaw Mobile additions,” according to the press release. During Q3, Shaw said it added 51,008 net postpaid and prepaid subscribers, in total from Freedom and Shaw Mobile, the press release reads. This includes 46,604 postpaid and 4,404 prepaid additions.
Shaw confirmed “that it remains on track to meet its fiscal 2021 guidance of adjusted EBITDA growth over fiscal 2020, consolidated capital investments of approximately $1 billion,” according to the press release.
The company also, however, acknowledged that factors including the ongoing Covid-19 pandemic and its deal with Rogers, which still needs approval from Canadian regulators, may impact its future performance.
“While the financial impacts from Covid-19 in the third quarter of fiscal 2021 were not material, the situation is still uncertain in terms of its magnitude, outcome, duration, resurgence, emergence of variants, and/or subsequent waves. Consumer behavior impacts remain uncertain and could still change materially,” according to the press release.
Nevertheless, CEO Shaw is optimistic. “While we continue to navigate the Covid-19 pandemic, I am optimistic that returning to our normal routine is imminent and that connectivity will remain just as important to Canadians,” he said.
The company has made “significant network investments” during the pandemic, which have enabled it “to provide critical connectivity during their time of need through Covid,” according to Shaw. Moving forward, the company’s “combination with Rogers will serve future generations with a robust 5G service and by reaching deeper into rural, remote and Indigenous communities” he said.
Shaw is optimistic about its deal with Rogers as well, expecting it to close in the first half of 2022, according to the press release.
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