Shaw profit slides 10% as Rogers deal lingers in limbo

Canadian operator Shaw Communications saw its revenue and profit slide in its fiscal Q2 (the three months ended February 28, 2022), as customer gains in its mobile segment slowed and wireline subscriber losses persisted.

The company did not host an earnings call, however revealed in a press release revenue fell 2% year on year to CAD 1.36 billion ($1.08 billion). Meanwhile, net income dropped 9.7% to CAD 196 million ($155.2 million). By segment, wireline revenue dipped 1.3% to CAD 1.04 billion ($823.7 million) and wireless revenue decreased nearly 4% to CAD 323 million ($255.8 million).

Shaw added 876 internet customers across its consumer and business units, but continued to hemorrhage video and phone customers. All told, it lost 58,081 wireline subscribers in the quarter, though this marked a slight improvement from a loss of 66,030 the year prior.

It ramped capital spending for its wireline segment by CAD 40 million during the quarter to a total of CAD 219 million, pumping CAD 112 million into network upgrades and enhancements, CAD 50 million into success-based expenditures and CAD 33 million into new housing development. The upgrade figure was up from CAD 92 million the year prior.






The operator gained a total of 16,892 wireless customers, but postpaid net additions plunged year on year from 75,069 to just 8,632. Shaw attributed the change to “increased wireless competition which is typical during the holiday season, a limited supply of key devices and bundle adjustments to Shaw Mobile plans.”

Rogers deal

In March of 2021, Shaw announced it had struck a deal to be acquired by larger rival Rogers Communications.

Though the deal remains pending, Shaw said in its earnings release it expects the transaction will close in the first half of this year. CEO Brad Shaw in a statement noted the pair recently received a key approval for the deal, with the Canadian Radio-television and Telecommunications Commission’s approval of the transfer of Shaw’s licensed broadcasting undertakings to Rogers.

“We continue to work with and support Rogers in obtaining the remaining approvals, including Innovation, Science and Economic Development Canada (ISED) and the Competition Bureau,” he said.

The company noted Rogers recently extended the outside date for closing the deal from March 15 to June 13.