Press release

Shaw announces second quarter financial and operating results

April 10, 2014

  • Second quarter and year-to-date consolidated revenues improved approximately 2% and 3%, respectively, over the same periods last year. Operating income before amortization for the quarter declined 2% while the six month period was comparable to the prior year.
  • Net income was $222 million or $0.46 per share for the quarter compared to $182 million and $0.38 per share last year. For the year-to-date period net income was $467 million or $0.98 per share compared to $417 million and $0.88 per share last year.

Calgary, Alberta (April 10, 2014) — Shaw Communications Inc. announced consolidated financial and operating results for the three and six months ended February 28, 2014. Consolidated revenue for the current quarter and year-to-date period of $1.27 billion and $2.64 billion, respectively, was up 2% and 3% over the comparable periods last year. Total operating income before amortization1 of $528 million declined 2% over the comparable quarterly period and the year-to-date amount of $1.14 billion was comparable to the prior year.

Free cash flow1 for the three and six month periods of $158 million and $315 million, respectively, compared to $161 million and $405 million for the same periods last year. The current six month period included higher capital investment and cash taxes partially offset by lower interest expense compared to the prior year.

Net income of $222 million or $0.46 per share for the quarter ended February 28, 2014 compared to $182 million or $0.38 per share for the same period last year. Net income for the first six months of the year was $467 million or $0.98 per share compared to $417 million or $0.88 per share. The current periods benefitted from a gain realized on the sale of certain media assets as well as lower interest expense and amortization, the total of which was partially offset by higher income taxes.

Chief Executive Officer, Brad Shaw said, "Our focus on leading technology, customer service and value leadership continued throughout the quarter. We invested in the expansion of Shaw Go WiFi, now with over 35,000 hotspots, and launched new apps supporting our TV Everywhere service which delivers innovation, choice and value to our customers. We continue to leverage our leading network infrastructure and high quality content, driving profitability and long term growth."

Revenue in the Cable division of $839 million and $1.7 billion for the current three and six month periods improved 3% and 4%, respectively, over the comparable periods. Operating income before amortization for the quarter of $398 million increased 1% over the same quarter last year and the year-to-date period improved 2% to $803 million.

Satellite revenue of $220 million and $438 million for the three and six month periods, respectively, compared to $209 million and $423 million in the same periods last year. Operating income before amortization for the current quarter was $69 million compared to $73 million last year and the year-to-date amount of $135 million declined from $147 million in the prior year.

Revenue and operating income before amortization in the Media division for the quarter of $239 million and $61 million, respectively, declined from $249 million and $72 million in the same period last year. On a year-to-date basis Media revenue declined marginally over the prior year to $564 million from $568 million and operating income before amortization was $198 million compared to $203 million last year.

On January 14, 2014, the Board of Directors approved an 8% increase in the equivalent annual dividend rate to $1.10 on Shaw's Class B Non-Voting Participating Shares. The new rates were effective commencing with the monthly dividend paid on March 28, 2014.

On January 28, 2014 the Company issued $500 million senior unsecured notes at a rate of 4.35% due January 31, 2024 and $300 million floating rate senior unsecured notes due February 1, 2016. The floating rate senior notes bear interest at an annual rate equal to three month CDOR plus 0.69% (which currently reflects an all-in annual rate of under 2.00%). The net proceeds from the issuances were used to redeem the $600 million senior unsecured notes due June 2, 2014 and for working capital and general corporate purposes.

Brad Shaw concluded "We remain focused on disciplined and sustainable growth, customer retention, and driving performance through continuous improvement. Significant work is underway to drive operational efficiencies and we plan to report on our progress over the coming quarters."

1 See definitions and discussion under Key Performance Drivers 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 3.2 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® 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). For more information about Shaw, please visit www.shaw.ca.

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