Shaw Communications (SJR.A) has reported that it earned $196 million in its fiscal first quarter, up from $163 million a year earlier.
Shaw’s earnings come as the company closes a $26 billion deal that will see the Calgary-based cable and wireless provider sold to Rogers Communications (RCI.A) in the first half of this year.
Shaw said that its net income increased $33 million compared to the first quarter of 2021. The profit amounted to 39 cents per diluted share for the quarter ended November 30, up from 31 cents per diluted share a year earlier.
Revenue in what was the first quarter of Shaw's 2022 financial year totalled $1.39 billion, up from $1.37 billion a year ago. Wireless service revenue grew 11.2% due to continued subscriber growth, with Shaw adding approximately 55,600 new wireless customers in the first quarter.
The company's wireline subscribers declined by approximately 78,100 in the quarter compared to a loss of approximately 100,900 in the first quarter of fiscal 2021.
The company said revenue from its business division increased 11% year-over-year to $161 million, despite the fact that the majority of Shaw Business revenue comes from small and medium-sized businesses, a sector that has been challenged by the COVID-19 pandemic.
Shaw has agreed to be acquired by Rogers Communications in an deal valued at about $26 billion. The plan of arrangement for the transaction was approved last May by the Court of Queen's Bench of Alberta.
Shaw says, subject to regulatory approvals, the transaction is expected to close in the first half of this year.
