OTTAWA (dpa-AFX) - Canadian media and communications company Shaw Communications Inc. (SJR, SJR_B.TO) on Thursday reported a profit for the first quarter that soared from last year, reflecting higher revenues and a year-ago charge related to the acquisition of the Canwest broadcast business.
The company's net income for the first quarter attributable to common shareholders was C$192 million or C$0.43 per share, up from C$12 million or C$0.03 per share in the prior-year quarter.
Net income from continuing operations surged to C$202 million or C$0.43 per share from C$17 million or C$0.03 per share in the year-ago period.
The prior-year quarter's results included a charge of C$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 C$58 million.
Excluding the non-operating items, net income increased 28 percent to C$210 million from C$164 million in the same period last year. On average, fifteen analysts polled by Thomson Reuters expected the company to earn C$0.47 per share. Analysts' estimates typically exclude special items.
Consolidated revenue for the quarter grew 19 percent to C$1.28 billion from C$1.08 billion in the year-ago period. Analysts had a consensus revenue estimate of C$1.31 billion.
The increase in revenues was primarily due to the inclusion of Shaw Media revenues for the full quarter, as well as customer growth and price changes in the cable and satellite divisions.
Brad Shaw, chief executive officer of Shaw Communications said, 'We have a number of strategic initiatives underway including our digital network upgrade and Wi-Fi build that support our leadership position in broadband and video, strengthening our core business. Our digital network upgrade is well underway and we recently started the trial of our Wi-Fi network at a variety of locations in Calgary, Edmonton and Vancouver.'
Revenue in the cable division increased 4 percent from last year to C$792 million, primarily driven by customer growth in Internet and Digital Phone, in addition to price changes.
Satellite division revenues improved 1 percent from the year-ago period to C$209 million on price changes, while media division revenues for the first full quarter more than doubled from last year to C$299 million.
However, on a comparative basis to a full quarter last year, media revenues declined 3 percent, reflecting the softening of the advertising market due to the economic uncertainty.
Free cash flow for the quarter declined to C$119 million from C$154 million in the year-ago period as improved operating income before amortization was reduced by higher capital investment related to strategic initiatives as well as increased interest and cash taxes.
Looking ahead to fiscal year 2012, the company projects free cash flow to decline moderately from the prior year to approximately C$550 million.
The company cited higher CRTC benefit obligation funding and cash taxes as reasons for the decline in free cash flow.
In Thursday's session on the NYSE, SJR is trading at $19.71, down $0.41 or 2.04 percent on a volume of 19,438 shares.
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