Shaw Communications reports $196M first-quarter profit, up from $163M a year ago

Shaw Communications Inc. said Wednesday it earned $196 million in its latest quarter, as it continues to work toward the closure of a $26-billion deal that will see the Calgary-based cable and wireless company sold to Rogers Communications Inc. in the first half of this year.

Shaw said Wednesday its net income increased $33 million compared to the first quarter of 2021. The profit amounted to 39 cents per diluted share for the quarter ended Nov. 30, up from 31 cents per diluted share a year earlier.

Revenue in what was the first quarter of Shaw's 2022 financial year totalled nearly $1.39 billion, up from $1.37 billion a year ago. Wireless service revenue grew 11.2 per cent due to continued subscriber growth, with Shaw adding approximately 55,600 new wireless customers in the first quarter.

The company's wireline subscribers declined by approximately 78,100 in the quarter compared to a loss of approximately 100,900 in the first quarter of fiscal 2021. The current quarter was led by a modest gain in consumer internet customers, offset with declines in video, satellite and phone.

The company said revenue from its business division increased 11 per cent year-over-year to $161 million, despite the fact that the majority of Shaw Business revenue comes from small and medium-sized businesses a sector that has been significantly challenged by the COVID-19 pandemic.

Shaw has agreed to be acquired by Rogers Communications Inc. in an deal valued at about $26 billion. The plan of arrangement for the transaction was approved in May 25 by the Court of Queen's Bench of Alberta.

The CRTC held hearings to review the deal last year. Shaw says, subject to CRTC and other regulatory approvals, the transaction is expected to close in the first half of 2022.

"We recognize that we can do so much more by coming together and reiterate our continued commitment to work with Rogers to close the transaction while delivering the benefits that the combined entity will provide Canadians," said chief executive Brad Shaw in a news release Wednesday.