Shaw Communications Q1 Profit Increases 20%

Shaw Communications (TSE: SJR.B) posted higher revenue and profit in the first quarter of Fiscal Year 2022.

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Earnings & Revenues

Net income came in at C$196 million for the quarter ended November 30, an increase of 20.2% from C$163 million in the first quarter of the prior year.

Earnings per share were C$0.39 in Q1 2022, C$0.08 more than in Q1 2021. Consolidated revenue amounted to C$ 1.39 billion, an increase of 1.2% from C$1.37 billion in the prior-year quarter. Adjusted EBITDA increased 4.3% to C$633 million.

Shaw added approximately 55,600 new wireless customers. Postpaid net additions were approximately 36,100, while wireless service revenue grew 11.2% to C$239 million.

Management Commentary

Shaw Communications executive Chair and CEO Brad Shaw said, “We remain committed to delivering exceptional customer experiences, investing in the strength of our networks and continued focus on execution of our strategic business priorities. Our combination with Rogers will do more for the future prosperity of Canada than either company could achieve on its own. Together, Rogers and Shaw can build a national next-generation network that will offer robust and effective competition over the long-term, and bridge Canada’s digital divide benefiting rural, remote and indigenous communities. The resources and network of the combined company will help accelerate Canada’s digital economy and stimulate greater economic diversification in Western Canada.”

Wall Street’s Take

On January 9, RBC Capital analyst Drew Mcreynolds reiterated a Buy rating on SJR.B with a $40.50 price target. This implies 6.6% upside potential.

Overall, SJR.B scores a Hold consensus rating by Wall Street analysts based on one Buy and three Holds. The average Shaw Communications price target of C$43.09 implies upside potential of about 13.5% to current levels.

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