Canadian media and communications company Shaw Communications Inc. (SJR,SJR_B.TO) on Wednesday reported a 17 percent increase in profit for the first quarter from last year.
The results reflect rate increases at the company's cable and satellite divisions as well as improved advertising and subscriber revenues at the media division. Earnings per share for the quarter beat analysts' estimates.
Cable division revenue for the quarter increased 2 percent from the year-ago period to C$809 million, reflecting rate increases and customer growth in Internet and digital phone, including business growth. These were partially offset by lower video subscribers.
Satellite division revenues also rose 2 percent to C$214 million, primarily due to rate increases. The increase in revenues reflect rate increases that were partly offset by various expense increases including employee related amounts and higher programming.
Media division revenues grew 7 percent from last year to C$319 million, reflecting improved advertising and subscriber revenues that were partially offset by higher programming costs.
During the quarter, digital phone lines increased 17,345 from the year-ago period to 1.36 million and Internet customers rose 5,956 to 1.90 million. Video customers decreased 23,912 to 2.17 million, while DTH customers decreased 4,021 to 906,002.
Shaw Communications' first-quarter net income was C$224 million or C$0.49 per share, up from C$192 million or C$0.43 per share in the prior-year period.
On average, twelve analysts polled by Thomson Reuters expected the company to earn C$0.45 per share for the quarter. Analysts' estimates typically exclude one-time items.
Revenue for the quarter rose 3 percent to C$1.32 billion from C$1.28 billion in the year-ago period and beat analysts' consensus estimate of C$1.31 billion.
Brad Shaw, Chief Executive Officer of Shaw Communications said, "The business performed well in the quarter building on the positive momentum from the second half of last year. We continue to leverage our portfolio of assets to deliver innovative new offerings and enhanced services, providing choice and value to our customers."
For fiscal year 2013, Shaw Communications forecasts modest growth in consolidated revenue and operating income before amortization. Combined with increased cash tax amounts, the company expects to deliver consolidated free cash flow comparable to 2012.
In Wednesday's regular session on the New York stock exchange, SJR is trading at $22.92, up $0.09 or 0.39 percent on a volume of 3,000 shares.
On the Toronto stock exchange, SJR-B.TO is trading at C$22.67, up C$0.13 or 0.58 percent on a volume of 29,977 shares.
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