VICTORIA – Shaw Communications Inc. released its financial results for the first quarter of fiscal 2022 that shows free cash flow increasing to $236 million and EBITDA growth of 4.3 percent.
On a year-over-year basis, consolidated revenue increased by 1.2 per cent to $1.39 billion, as Shaw continues to move towards closure of its purchase by Rogers that was announced March 15 last year.
“Our combination with Rogers will do more for the future prosperity of Canada than either company could achieve on its own,” states Brad Shaw, Executive Chair and Chief Executive Officer of Shaw. “Together, Rogers and Shaw can build a national next-generation network that will offer robust and effective competition over the long-term, and bridge Canada’s digital divide benefiting rural, remote and indigenous communities.
“The resources and network of the combined company will help accelerate Canada’s digital economy and stimulate greater economic diversification in Western Canada.”
The transaction was valued at approximately $26 billion, which includes approximately $6 billion of Shaw debt. The Transaction remains subject to other customary closing conditions including approvals from certain Canadian regulators. Shaw and Rogers are working cooperatively and constructively with the Competition Bureau, Innovation, Science and Economic Development Canada (ISED) and the Canadian Radio-television and Telecommunications Commission (CRTC) in order to secure the requisite approvals. Subject to receipt of all required approvals and satisfaction of all closing conditions, closing of the Transaction is expected to occur in the first half of 2022.
In the first quarter, Shaw added approximately 55,600 new Wireless customers. Postpaid net additions of approximately 36,100 in the quarter were driven by the continued momentum of Shaw Mobile. First quarter Wireless revenue increased 4.7 per cent to $332 million and adjusted EBITDA of $109 million increased 45.3 per cent year-over-year. Wireless service revenue increased 11.2 per cent to $239 million due to an increased subscriber base, while Wireless equipment revenue decreased 8.8 per cent to $93 million as more consumers took advantage of bring their own device plans.
