Shaw 2009 Annual Report Download - page 10

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I. INTRODUCTION TO THE BUSINESS
A. Company overview – core business and strategies
Shaw Communications Inc. (“Shaw” or “the Company”) is a diversified Canadian communications
company whose core business is providing broadband cable television, Internet, Digital Phone,
telecommunications services (through Shaw Business Solutions) and satellite direct-to-home
services (through Shaw Direct) to approximately 3.4 million customers. It provides customers
with high-quality entertainment, information and communications services, utilizing a variety of
distribution technologies.
Shaw’s business is encapsulated within its vision statement: “We, the leading entertainment and
communications company, deliver exceptional customer experience through outstanding people
sharing Shaw values.”
Shaw’s strategy is to maximize shareholder value through the generation of free cash flow.
1
The key
elements of this strategy include: leveraging its network infrastructure to offer customers a wider
variety of products and services; enhancing existing products to provide greater value to customers;
providing best-in-class 24/7/365 service; bundling product offerings to provide value to both Shaw
and the customer; and focusing on sound capital management and operational efficiencies to
maintain a competitive edge.
The Company operates two principal business segments: (1) Cable – comprised of cable television,
Internet, Digital Phone and Business Solutions operations; and (2) Satellite – comprised of
direct-to-home (“DTH”) and satellite services. As a percentage of Shaw’s consolidated revenues
for the year ended August 31, 2009, the Cable Division and Satellite Division represent
approximately 78% and 22% of Shaw’s business, respectively, which is similar to last year. During
2009, Shaw’s businesses generated consolidated service revenues of $3.39 billion.
During 2008, the Company participated in the Canadian Advanced Wireless Spectrum (“AWS”)
auction and was successful in acquiring 20 megahertz of spectrum across most of its cable
footprint. The Company continues to formulate its business plan with respect to Wireless.
The general development of these business segments, including more specific details for the last
three fiscal years, is summarized below.
B. General development of the business
(i) Cable
Cable Television –The Company’s initial core business was cable television services, which today
provides the customer base and physical infrastructure for much of the Company’s distribution
service businesses. Under the name Capital Cable Television Co. Ltd., Shaw acquired its first
license to offer cable television services in Edmonton, Alberta and area in 1970. Over the course of
the subsequent years, Shaw’s cable television operation has grown through a combination of the
acquisition of new cable television licences awarded by the Canadian Radio-television and
Telecommunications Commission (“CRTC”); the acquisition of existing cable systems; the
exchange of cable systems and assets with other Canadian cable companies; and internally
generated subscriber growth.
The Company is currently one of the largest cable television companies in Canada, and is the largest
cable television provider in Western Canada. As at August 31, 2009, Shaw served approximately
6
Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2009
1
See definitions under key performance drivers on page 18.