Earnings Review and Free Research Report: Shaw Communications’ Quarterly Revenue, Adjusted EPS Grew on a Y-o-Y Basis

LONDON, UK / ACCESSWIRE / July 10, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Shaw Communications Inc. (NYSE: SJR), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=SJR, following the Company’s announcement of its third quarter fiscal 2017 financial and operating results on June 28, 2017. The communications and media Company’s Cable TV subscribers grew for the first time since 2010. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on SJR. With the links below you can directly download the report of your stock of interest-free of charge at:

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Earnings Reviewed

For the quarter ended May 31, 2017, Shaw reported revenue from continuing operations of C$1.31 billion up 2.8% compared to revenue of C$1.28 billion in Q3 FY16.

Shaw’s operating income before restructuring costs and amortization for the three and nine month periods of FY17 were C$550 million and C$1.63 billion, respectively, compared to C$553 million and C$1.56 billion, respectively, in FY16. The slight decrease in the reported quarter was attributed primarily to higher operating expenses in the Consumer division driven by costs related to marketing the launch of BlueSky TV and other corporate related costs.

For Q3 FY17, Shaw’s net income of C$133 million, or C$0.27 per diluted share, decreased relatively to net income of C$704 million, or C$1.44 per diluted share, in Q3 FY16, primarily due to the prior year’s income from the discontinued Media and fleet tracking operations and the gain on the sale of the Media operation in the amount of C$630 million. Excluding discontinued operations, the Company’s net income from continuing operations increased by C$90 million on a y-o-y basis.

Cellular Metrics

In Q3 FY17, Shaw reported a net gain of over 38,000 revenue generating units (RGUs) in the Consumer division compared to an approximately 47,000 RGU losses in Q3 FY16. The Consumer division’s net gains in the reported quarter included the addition of approximately 20,000 Internet RGUs, 12,000 cable video RGUs, and 6,000 satellite video RGUs. This was attributed to strong Internet subscriber growth led by WideOpen Internet 150, bundle and value plan offerings driving notable reductions in disconnects, and the launch of BlueSky TV across Shaw’s entire cable video footprint. The reported quarter subscribers’ result also represented the Company’s division’s first positive net video RGU quarter since Q4 FY10.

In its Wireless segment, Shaw reported gaining a combined 20,000 RGUs in Q3 FY17 compared to approximately 22,000 RGUs in Q3 FY16. The LTE-A network deployment continued ahead of schedule, with upgrades now completed in the GTA, Hamilton, Vancouver, Edmonton, and Calgary, and with LTE roaming launched in Canada and in the US.

Financial Details

On June 13, 2017, Shaw announced that it entered a share purchase agreement with GI Partners portfolio company, Peak 10 Holding Corporation, to sell 100% of its wholly owned subsidiary, ViaWest, Inc. for US$1.675 billion (approximately C$2.3 billion). The transaction is subject to customary conditions, including US regulatory approval, and is expected to close by the end of fiscal 2017.

Shaw’s free cash flow for the three and nine month periods in FY17 was C$132 million and C$436 million, respectively, compared to C$182 million and C$473 million, respectively, in FY16. The decrease in free cash flow was largely due to higher planned capital expenditures and by the loss of free cash flow generated in the prior year by the former Media division which was sold on April 01, 2016.

On June 13, 2017, Shaw also announced that it entered a definitive agreement with Quebecor Media Inc. to acquire 700 MHz and 2500 MHz wireless spectrum licenses held by Quebecor’s subsidiary, Videotron, for C$430 million. The Company estimates capital expenditures associated with the deployment of the acquired spectrum to be approximately C$350 million.

On June 28, 2017, Shaw announced that its Board of Directors has declared monthly dividends of C$0.09875 on the Class B Non-Voting Participating Shares and C$0.098542 on the Class A Participating Shares, payable on each of September 28, 2017, October 30, 2017, and November 29, 2017, to holders of record at the close of business on September 15, 2017, October 13, 2017, and November 15, 2017, respectively.

Outlook

Shaw updated its fiscal 2017 financial guidance for operating income before restructuring costs and amortization to range between C$2.135 billion and C$2.160 billion, capital investment of approximately C$1.35 billion, and free cash flow of approximately C$400 million.

Stock Performance

Shaw Communications’ share price finished last Friday’s trading session at $21.69, advancing 1.21%. A total volume of 738.79 thousand shares have exchanged hands, which was higher than the 3-month average volume of 545.82 thousand shares. The Company’s stock price rallied 5.70% in the last three months, 5.09% in the past six months, and 14.82% in the previous twelve months. Additionally, the stock gained 8.13% since the start of the year. Shares of the Company have a PE ratio of 25.67 and have a dividend yield of 4.10%. The stock currently has a market cap of $10.83 billion.

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