CALGARY – Shaw Communications announced Thursday its consolidated revenue increased by 1.8% to $1.39 billion in the second quarter ended February 28, 2021, as compared to the prior year’s Q2.
Its adjusted EBITDA increased 6.2% year-over-year to $637 million and net income increased 29.9% to $217 million. Second quarter results do not include any costs or financial impacts from the proposed transaction with Rogers, says the press release.
The company did not hold a conference call with financial analysts and the messaging in its press release was heavy on the merger.
“Our country has been a leader in building and operating strong, robust networks that deliver innovative technology and services to our customers. If this past year has shown us anything, it is that we are resilient, and that strong, capable networks are not only essential to our health and well-being now, but are required to fuel economic growth and prosperity in the future,” said Brad Shaw, executive chair and CEO.
“Today, we are on the cusp of a new technological era, with 5G representing limitless opportunities; however, there are significant investments required to fully capitalize on all of its potential. Under a combined Rogers and Shaw entity, we will enable the scale, assets and capabilities to accelerate unprecedented investment, to help close the connectivity gap faster in rural, remote and Indigenous communities, and to deliver new technology and more choice for consumers and businesses, more quickly than either could achieve on its own. All Canadians deserve world class connectivity,”.
In the second quarter, the company added approximately 82,300 new wireless customers. Postpaid net additions of approximately 75,100 in the quarter “include continued momentum with Shaw Mobile. Wireless service revenue growth of 8.5% is due to subscriber growth,” reads the release.
“As the Company continues to scale its lower revenue Shaw Mobile customer base, second quarter Wireless ARPU decreased 4.2% from the prior year period to $36.82; however, household profitability of bundled customers increased and Internet migration to faster speed tiers continues to accelerate. Wireless postpaid churn improved 32-basis points over the prior year period to 1.25%.”
Subscriber results are softer on the wireline side where Shaw “continues to focus on profitable Internet customer growth and retention, primarily through its bundling initiatives,” reads the release.
In the quarter, consumer RGU (revenue generating unit) losses of approximately 65,800 was an improvement over the first quarter of fiscal 2021, including consumer Internet RGU losses of approximately 5,400 as more customers bundled their Internet and Wireless service together.
“Second quarter wireline revenue declined 0.8% year-over-year to $1.05 billion and adjusted EBITDA increased 4% to $540 million, resulting in an adjusted EBITDA margin of 51.2%,” reads the release.
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