- Shaw Communications (SJR.B) has reported an increase in profit for the quarter ending November 30, 2020, despite a marginal decline in revenue
- For the first quarter of fiscal 2021, the company posted a 0.6 per cent increase in net income compared to the same period in 2019, from C$162 million to $163 million
- It comes off the back of a 0.9 per cent drop in revenue, from more than $1.38 billion to $1.37 billion
- The company said its bundling initiatives, along with various cost-cutting measures, drove the strong performance
- Shaw Communications is currently up 0.29 per cent to $13.64 per share
Shaw Communications (SJR.B) has reported an increase in profit for the quarter ending November 30, 2020, despite a marginal decline in revenue.
During the first quarter of fiscal 2021, the Calgary-based telecommunications provider posted a 0.6 per cent increase in net income compared to the same period the year before, from C$162 million to $163 million.
The increase comes in the face of a 0.9 per cent - or $13 million - drop in revenue, from more than $1.38 billion to $1.37 billion.
Shaw said that much of the decline was due to a reduced performance in its video, satellite and phone subscriber base, which was partially offset by growth in the company's internet revenue.
Notably, the company reported record growth in its wireless subscribers, with roughly 101,000 new customers. This includes 87,300 postpaid and 13,700 prepaid additions, driving revenue growth of 10 per cent year-over-year.
Brad Shaw, Executive Chair and CEO of Shaw Communications, said the company has been focused on sailing its wireless subscriber base since it was launched almost five years ago, making significant investments to fuel innovation while continuing to provide value to customers.
"Connectivity matters more than ever, and our Shaw Mobile bundling strategy is a powerful combination of high quality, affordable wireless services with our robust Fibre+ Internet offering which is clearly resonating with our internet customers," Brad added.
"Our bundling initiatives, combined with a sharp focus on effective cost management across our entire organisation, delivered record wireless customers and a wireline adjusted EBITDA margin that exceeded 50 per cent in the quarter," he concluded.
Shaw says it remains on track to achieve its fiscal 2021 guidance of continued EBITDA. growth, capital investments of approximately $1 billion, and free cash flow of $800 million.
Shaw Communications is currently up 0.29 per cent to $13.64 per share at 12:11pm EST.