Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Shaw Communications profit beats on higher wireless subscriptions

Published 2019-01-14, 12:55 p/m
Updated 2019-01-14, 12:55 p/m
© Reuters.  Shaw Communications profit beats on higher wireless subscriptions

© Reuters. Shaw Communications profit beats on higher wireless subscriptions

Jan 14 (Reuters) - Shaw Communications Inc SJRb.TO on Monday topped analysts' estimates for quarterly profit as more subscribers signed up for the Canadian telecom company's postpaid wireless services, sending its shares up 3 percent.

In its first quarter, Shaw expanded its network for customers in Calgary by launching high-speed wireless spectrum, as it continues to face stiff competition from Telus Corp T.TO , Rogers Communications Inc RCIb.TO and BCE Inc's BCE.TO Bell Canada.

The company added 65,615 wireless subscribers in the quarter and its total wireless revenue rose nearly 60 percent to C$273 million ($205.71 million).

In addition to the spectrum distribution, the company is also seeking to expand its wireless network into new areas, mostly in Western Canada.

Revenue from the core wireline business rose slightly to C$1.08 billion.

Telecom service providers in Canada have also been investing heavily in the next generation 5G network to attract data-hungry customers. Shaw completed its first 5G technical trials in Calgary in May 2018.

The company said it was set to meet its fiscal 2019 outlook, which included an estimated free cash flow of C$500 million and capital investment of about C$1.2 billion.

However, Paul McAleese, president - wireless, said on a conference call with analysts that media reports about flattening out of smartphones sales may impact the company's 2019 numbers.

The Calgary-based company's net income rose to C$187 million ($140.9 million), or 36 Canadian cents per share, for the first quarter ended Nov.30.

Excluding items, the company earned 36 Canadian cents per share, beating the average analyst estimate of 31 Canadian cents per share, according IBES data from Refinitiv.

The company's quarterly revenue rose 8.8 percent to C$1.36 billion. of the company were trading higher at $26.76 on the Toronto Stock Exchange.

($1 = 1.3271 Canadian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.