CALGARY – Shaw Communications Inc. reported net income of $ 354 million for the quarter ended May 31, compared to $ 184 million in the third quarter last year.
That translated to 70 cents per diluted share, double the profit from a year earlier. Revenue was $ 1.38 billion, up 4.8% from $ 1.31 billion the year before.
Shaw is expected to earn $ 169 million or 33 cents per share on $ 1.35 billion in revenue, according to financial data firm Refinitiv.
The results come from the Calgary-based company’s latest financial report since Shaw agreed to be bought by Rogers Communications for $ 26 billion, subject to federal approvals.
The Rogers-Shaw deal is not expected to complete the review process until next year.
Observers said the most difficult part of the deal could be the competition concerns surrounding Shaw’s Freedom Mobile division. The companies say they are confident the deal will be approved.
If the deal is successful, Toronto-based Rogers would own Canada’s No.1 and No.4 wireless companies, the country’s two largest cable systems, and one of two direct-to-home satellite services in Canada. .
“By joining forces with Shaw and Rogers, the combined entity will have the scale, assets and capabilities to confidently invest billions of dollars that will serve future generations, help bridge the digital divide and deliver coast-to-coast 5G service across Canada. Said Executive Chairman and CEO Brad Shaw.
Shaw said the higher quarterly earnings were mainly due to an increase in Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) and a review of tax liabilities.
Shaw added approximately 51,000 new wireless customers, generating 9.2 percent revenue growth, partially offset by lower average revenue per user.
Wireline revenues increased 1.6 percent to $ 1.08 billion, including $ 20 million from the release of a provision following a CRTC decision on final aggregate tariffs for Internet access services of others.
This report by The Canadian Press was first published on June 30, 2021.
Companies in this story: (TSX: SJR.B, TSX: RCI.B)
The Canadian Press