Shaw Communications Affirms Guidance; Q1 Profit Declines On Charges

(RTTNews) - Shaw Communications Inc. (SJR_B.TO, SJR, SJR_A.TO) confirmed that at the current time there are no changes to its previously issued fiscal 2017 guidance. Operating income before restructuring costs and amortization is expected to range between C$2.125 and C$2.175 billion and free cash flow is expected to exceed C$400 million. The company's consolidated capital investment targets also remain unchanged from previously provided guidance at C$1.3 billion for the year.

First-quarter operating income before restructuring costs and amortization was C$539 million improved 6.1% over the comparable period. Excluding the results of the Wireless division, acquired on March 1, 2016, operating income before restructuring costs and amortization for the quarter remained flat over the comparable period.

First-quarter net income was C$89 million decreased by C$129 million relative to the first quarter of fiscal 2016 mainly due to a non-recurring provision in the amount of C$107 million related to the wind down of investment in shomi. Net income in the quarter also reflects a decrease in income from discontinued operations, net of tax, in the amount of C$80 million due to the sale of the former Media division in the third quarter of the prior year which is offset partially by the equity income of C$27 million in the quarter from investment in Corus.

First-quarter earnings per share was C$0.18 compared to C$0.43. On average, ten analysts polled by Thomson Reuters expected the company to report profit per share of C$0.24 for the quarter. Analysts' estimates typically exclude special items.

First-quarter consolidated revenue from continuing operations were C$1.31 billion increased by 14.9% over the comparable period. Analysts expected revenue of C$1.0 billion, for the quarter. Excluding the results of the Wireless division, acquired on March 1, 2016, revenue for the quarter from the combined Consumer, Business Network Services and Business Infrastructure Services divisions was up 2.8%.

CEO, Brad Shaw said, "We've entered fiscal 2017 with momentum and on track to deliver on our strategic initiatives. Shaw recently announced the completion of key milestones demonstrating our commitment to execute on our video and network technology roadmaps, most notably, the introduction of our next generation video product BlueSky TV and the launch of Freedom Mobile's LTE-Advanced network. Our solid first quarter results reflect the broadband advantage we've created and our disciplined approach to long-term and sustainable growth."