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Shaw Communications reports higher second-quarter revenue and earnings

CALGARY — Shaw Communications Inc. is reporting higher revenue and earnings for its latest fiscal quarter as its $26-billion deal to be sold to Rogers Communications Inc. continues to face federal and regulator scrutiny.

The company says it had net income of $217 million on revenue of $1.387 billion in the three months ended Feb. 28, up from net income of $167 million on revenue of $1.363 billion in the same period a year ago.

Earnings before interest, taxes, depreciation and amortization came to $637 million, beating analyst expectations of $612 million, according to financial data firm Refinitiv.

Shaw says wireless service revenue rose 8.5 per cent to $218 million as it added 82,300 subscriptions, while wireline revenue dropped 0.8 per cent to $1.05 billion as it lost 65,800 subscriptions.

The Rogers-Shaw deal would create a company that owns Canada's two largest cable systems, the country's No. 1 and No. 4 wireless businesses, one of Canada's two direct-to-home satellite services, as well as a significant stake in Cogeco.

Shaw's Freedom Mobile has said it will not participate in a wireless spectrum auction in June deemed crucial for the development of 5G networks.

“Today, we are on the cusp of a new technological era, with 5G representing limitless opportunities; however, there are significant investments required to fully capitalize on all of its potential," said CEO Brad Shaw in a news release on Wednesday.

"Under a combined Rogers and Shaw entity, we will enable the scale, assets and capabilities to accelerate unprecedented investment, to help close the connectivity gap faster in rural, remote and Indigenous communities, and to deliver new technology and more choice for consumers and businesses, more quickly than either could achieve on its own."

This report by The Canadian Press was first published April 14,  2021.

Companies in this story: (TSX:SJR.B)

The Canadian Press