Calgary-based Shaw Communications Inc. reported on Monday net income of $187 million for its fiscal first quarter, which ended Nov. 30, 2018.
It said net income rose from $111 million in the first quarter of fiscal 2018 “driven primarily by an increase in operating income before restructuring costs and amortization.”
The company also said revenue from continuing operations increased by approximately 8.8 per cent to $1.36 billion, compared to the first quarter in fiscal 2018, and operating income before restructuring costs and amortization increased 13.5 per cent year over year to $545 million.
“We continue to build momentum in our wireless business by leveraging our significant network investments and offering affordable and innovative data plans. In addition, never seen before promotions in Canada, such as the Big Binge Bonus that was recently introduced, provides a strong value proposition to Canadians who increasingly want and use more wireless data,” said Brad Shaw, chief executive officer, in a news release.
“Our strategy to invest and focus on growing our wireless postpaid market share has delivered another quarter of strong results, adding over 86,000 postpaid customers while improving wireless postpaid churn from 1.64 per cent to 1.28 per cent over the last year due to significant and ongoing enhancements to our network and customer experience. Through these investments, we are attracting and retaining customers with higher lifetime value.”
In the quarter, the company said it completed the launch of 140 new retail locations with Walmart and is now operating in a combined total of approximately 240 national retail locations across its footprint with Loblaws’ The Mobile Shop and Walmart. When combined with its existing corporate and dealer store network, Freedom Mobile now has over 600 retail locations in operation, it said.
“We have taken some important steps this quarter in our wireline segment, adding consumer Internet subscribers, doubling the speeds of our top Internet tiers, and stabilizing revenue through our fresh approach to base management, which includes a balanced and digital focus on acquisition and retention. While we are still early days in our journey towards a modern Shaw, I am encouraged by the progress we have made as we improve upon the fundamentals of our business, further supporting the delivery of our broadband strategy throughout fiscal 2019,” added Brad Shaw.
“First-quarter results represent a solid start to fiscal 2019 where we expect to continue to grow our wireless business with our innovative and data-centric plans that leverage our continuously improving network. We also expect to increase our market share in Western Canada as we expand our network into new cities throughout 2019, including Victoria and Red Deer, which are set to launch in the coming weeks.
“In our wireline business, we remain focused on growing broadband subscribers and have an exciting IP roadmap that will launch this year, differentiating our already strong broadband proposition. We remain focused on the execution of our wireline and wireless operating priorities while transforming into an agile, lean and digital-first organization that meets the needs of its customers now and into the future.”