Press release

Shaw announces third quarter financial and operating results

June 28, 2012

Calgary, Alberta (June 28, 2012) — Shaw Communications Inc. announced consolidated financial and operating results for the three and nine months ended May 31, 2012 and 2011. Consolidated revenue for the three month period of $1.28 billion was comparable to the same period last year. Revenue for the nine month period of $3.79 billion was up 6% over last year. Total operating income before amortization1 of $567 million declined 3% over the comparable quarterly period while the year-to-date amount of $1.63 billion improved almost 4%.

Free cash flow1 for the three and nine month periods was $203 million and $379 million, respectively, compared to $240 million and $568 million for the same periods last year. Lower operating income before amortization in the current quarter, along with higher capital investment in both the current three and nine month periods were the main drivers of the decrease.

Chief Executive Officer Brad Shaw said, “During the quarter we focused on sustainable growth initiatives, while maintaining our commitment to technology, customer service and value leadership. We continued to drive innovation with our Wi-Fi build, now offering EXO Wi-Fi at over 1,500 sites in Calgary, Edmonton, Vancouver, Victoria and Winnipeg, and our DNU project, allowing us to provide leading internet speeds, more HD channels and an exceptional variety of VOD movies and TV shows. Our EXO product offerings are popular with customers and we are continuing to add staff to our customer service centres to support an exceptional customer experience. We also saw solid performance across our leading portfolio of Specialty services.”

Net income from continuing operations of $248 million or $0.53 per share for the quarter ended May 31, 2012 compared to $203 million or $0.45 per share for the same period last year. Net income from continuing operations for the first nine months of the year was $628 million or $1.34 per share compared to $392 million or $0.86 per share last year. All periods included nonoperating items which are more fully detailed in Management’s Discussions and Analysis (MD&A).2 The prior year-to-date period included a charge of $139 million for the discounted value of the CRTC benefit obligation related to the acquisition of Shaw Media, as well as business acquisition, integration and restructuring expenses of $90 million. Excluding the nonoperating items, net income from continuing operations for the three and nine month periods ended May 31, 2012 would have been $219 million and $607 million, respectively, compared to $229 million and $564 million in the same periods last year.

Revenue in the Cable division of $794 million and $2.39 billion for the current three and nine month periods increased 1% and 3%, respectively, over the comparable periods. Operating income before amortization for the quarter and year-to-date periods of $377 million and $1.11 billion, was down 4% and 1%, respectively, compared to the same periods last year. Financial results improved compared to the second quarter with margins increasing from 43.8% to 47.5%; however, subscriber growth slowed reflecting the commitment to maintain and increase the base in a disciplined and prudent manner.

Satellite revenue of $211 million and $631 million for the three and nine month periods, respectively, was up from $210 million and $620 million for the same periods last year. Operating income before amortization for the current quarter and year-to-date period of $76 million and $216 million were comparable to the same periods last year.

Revenue in the Media division for the three and nine month periods was $295 million and $836 million, respectively, and operating income before amortization was $114 million and $304 million. The quarterly amounts were down 5% and 3%, respectively, compared to the same period last year. For informational purposes, on a comparative basis to the prior year, Media revenues and operating income before amortization for the full nine month period were each down approximately 3%.

Brad Shaw concluded, “As we enter the final quarter of fiscal 2012 we are on track to achieve our free cash flow guidance of approximately $450 million. We remain focused on the long term profitability of our assets and will continue to implement cost savings, execute on operational efficiencies, and prudently manage our capital investments building value for all of our stakeholders.”

The accompanying Management’s Discussion and Analysis forms part of this news release and the “Caution Concerning Forward Looking Statements” applies to all forward-looking statements made in this news release.

1 See definitions and discussion under Key Performance Drivers in MD&A.
2 See reconciliation of Net income from continuing operations in Consolidated Overview in MD&A.

About Shaw

Shaw Communications Inc. is a diversified communications and media company, providing consumers with broadband cable television, High-Speed Internet, Home Phone, telecommunications services (through Shaw Business), satellite direct-to-home services (through Shaw Direct) and engaging programming content (through Shaw Media). Shaw serves 3.4 million customers, through a reliable and extensive fibre network. Shaw Media operates one of the largest conventional television networks in Canada, Global Television, and 19 specialty networks including HGTV Canada, Food Network Canada, History Television and Showcase. Shaw is traded on the Toronto and New York stock exchanges and is included in the S&P/TSX 60 Index (Symbol: TSX – SJR.B, NYSE – SJR).

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