Shaw posts 2% fall in fiscal Q2 sales; expects Rogers merger completion in current quarter

14 Apr 2022

Canada’s Shaw Communications posted a 2.0% year-on-year decrease in consolidated revenue to CAD1.36 billion (USD1.08 billion) in its fiscal second quarter ended 28 February 2022. Quarterly adjusted EBITDA fell 0.8% y-o-y to CAD632 million while net income in the period dropped 9.7% y-o-y to CAD196 million. Shaw noted that the quarter experienced the peak of the omicron variant of COVID-19 across Canada, although also during the period many pandemic-related restrictions had been eased. Consumer ‘Wireline’ division quarterly RGU losses of 54,300 improved over the prior year period, including positive fixed internet additions with a continuing trend in customers bundling internet and mobile services from Shaw. In the quarter Shaw added 16,900 net new mobile subscriptions (Freedom Mobile and Shaw Mobile) with post-paid net additions of 8,600 (down y-o-y due to factors including increased competition typical during the holiday season and a limited supply of key devices), while the company noted continued growth of its lower-ARPU Shaw Mobile subscription base.

Regarding Shaw’s planned merger with Rogers Communications, the company’s release added: ‘Our team continues to execute on our strategic business priorities of delivering profitable growth while continuing to invest in the strength and breadth of our networks. It is this solid and strategic foundation that, combined with Rogers, will deliver new and better technologies to more Canadians. Together, we have achieved a critical milestone regarding our combination with Rogers by the Canadian Radio-television and Telecommunications Commission’s (CRTC) comprehensive review and approval of the transfer of Shaw’s licensed broadcasting undertakings to Rogers. We continue to work with and support Rogers in obtaining the remaining approvals, including Innovation, Science and Economic Development Canada (ISED) and the Competition Bureau, and continue to target closing of the transaction in the first half of [calendar year] 2022.’

Canada, Rogers Communications, Shaw Communications