Shaw Communications Beats Earnings
Shaw Communications Inc. (SJR) declared better financial results for the second quarter of fiscal 2013. GAAP net income from continuing operations was $182 million, up 2.2% year over year. GAAP net earnings per share were 38 cents, flat year over year, but outpaced the Zacks Consensus Estimate of 36 cents. Quarterly total revenue climbed 1.6% year over year to approximately $1,276 million, handily beating the Zacks Consensus Estimate of $1,259 million.
Quarterly operating income before amortization was around $334 million, up 14.3% year over year. Quarterly operating margin stood at 26.1% compared with 23.2% in the prior-year quarter. In the second quarter of fiscal 2013, Shaw Communications generated around $442.7 million of cash from operations, up 112.7% year over year. Free cash flow in the reported quarter was $280.1 million compared with a negative $23.5 million in the year-ago quarter.
At the end of the second quarter of fiscal 2013, Shaw Communications had cash and marketable securities of $118.3 million compared with $435.5 million at the end of fiscal 2012. At the end of the reported quarter, Shaw Communications had $4,554.3 million in outstanding debt compared with $4,908.2 million at the end of fiscal 2012. Debt-to-capitalization ratio at the end of the second quarter of fiscal 2013 was 0.51 compared with 0.54 at the end of fiscal 2012.
Subscribers Statistics
As of Feb 28, 2013, Basic Cable customer base was 2,136,707, reflecting a net reduction of 29,829 customers from the year-ago quarter. Internet customer base stood at 1,910,185, reflecting quarterly net addition of 7,800 customers. Digital phone lines were 1,375,707, reflecting a year-over-year net addition of 13,090 lines. DTH customer base was 907,330, representing a quarterly net addition of 1,328 customers.
Cable Segment
Quarterly revenue was $830.3 million, up 1.2% year over year. Strong revenue growth was attributed to subscriber addition and rate increases. Quarterly operating income before amortization was $400.1 million, up 11.6% year over year.
Satellite Segment
Quarterly total revenue of $213.2 million was down 0.9% year over year. The segment’s quarterly operating income before amortization was $74.5 million, up 2.8% from the year-ago quarter.
Media Segment
Quarterly total revenue was $254 million, up 2.9% year over year. Operating income before amortization was $73.4 million, up 2.9% year over year.
Currently, Shaw Communications has a Zacks Rank #3 (Hold).
Other Stocks to Consider
Some other companies in the same industry, which are yet to release their first-quarter financial results, are Rogers Communications Inc. (RCI), AT&T, Inc. (T) and Liberty Global Inc. (LBTYA). All three hold a Zacks Rank #2 (Buy).
Read the Full Research Report on T
Read the Full Research Report on SJR
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Read the Full Research Report on RCI
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