Cabinet declined to consider petition to set aside CRTC decision on Rogers merger
CALGARY – Shaw Communications announced today its financial results for Q3 2022, which shows revenue decreased 2.1% to $1.35 billion, compared to the same quarter the previous year.
The financial results for the quarter ended May 31, 2022, further show adjusted EBITDA increased slightly (0.3%) to $644 million compared to Q3 2021, while net income decreased 42.7% to $203 million.
“The prior year period included 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,” a press release says.
“On a year-over-year basis, this revenue impact is effectively offset by equity-based compensation adjustments driven by significant fluctuations in Shaw’s share price and adjustments to employee benefits provisions, resulting in no significant impact on EBITDA variances.”
Shaw added around 35,000 wireless customers in Q3 2022. “Postpaid net additions of approximately 19,400 in the quarter were down compared to the prior year due to wireless competition, a limited supply of key devices, bundle adjustments effective in late 2021 for Shaw Mobile and moderating demand for Shaw Mobile plans,” the press release says.
Wireless revenue for the quarter was reported to have increased 4.4% to $311 million compared to the same quarter the previous year while adjusted EBITDA for the segment increased 12.2% to $129 million.
Wireline revenue for Q3 2022 decreased 3.9% to $1.04 billion compared to Q3 2021, while adjusted EBITDA for the segment decreased 2.3% to $515 million.
Rogers Communications and Shaw are currently in the process of seeking approvals for the former’s acquisition of the latter.
Today’s press release announcing Shaw’s financial results notes the CRTC has already given its approval, and while a petition was filed by the National Pensioners Federation and Public Interest Advocacy Centre (NPF-PIAC), asking Cabinet to set aside or refer the decision back to the CRTC, Cabinet declined to consider the petition on June 22, 2022.
The proposed transaction still requires approvals from ISED and is currently headed to mediation with the Competition Bureau.
The press release notes all parties are still working to see the deal close by July 31, 2022, however, whether that happens will depend on things such as the time required to address the Commissioner of Competition’s concerns.
Rogers and Shaw have already agreed to sell Freedom Mobile to Quebecor as a remedy for concerns about the impact of the merger on wireless competition in the country.
“Shaw remains deeply committed to the combination with Rogers and our announced agreement for the sale of Freedom Mobile to Quebecor marks a critical point in our bold and transformative journey to join together with Rogers,” said Brad Shaw, executive chair and CEO of Shaw, in the release.
“We feel strongly that the sale of Freedom to Quebecor will be seen as a positive outcome by the regulators as Quebecor expands their successful wireless operations through this acquisition. We continue to support the ongoing process and remain optimistic that there is a clear path to obtaining the remaining regulatory approvals in an expeditious manner,” he said.
For more, please click here.
