Shaw 2010 Annual Report Download - page 5

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Shaw Communications Inc.
REPORT TO SHAREHOLDERS
August 31, 2010
Dear fellow Shareholders:
This is an exciting time for the entertainment, broadcasting and communications industry.
Technology continues to evolve at a rapid pace driving change in consumer behavior and opening
up opportunities for companies like Shaw that have the resources and talent to capitalize on them.
An opportunity presented itself early in fiscal 2010 when Canwest Global Communications Corp.
(“Canwest”) filed for bankruptcy protection. Shaw was successful in acquiring Canwest’s broadcast
TV network, content ownership and specialty services (“Media”). After receiving all Court and
regulatory approvals, the acquisition closed and we launched Shaw Media, our newest business
unit, on October 27, 2010. We are excited about the opportunities to leverage content with our
current and future distribution systems, opening up new opportunities for growth and ensuring that
we evolve in step with consumer demands.
OUR STRATEGY
Shaw’s strategic focus is consistent: we have a relentless commitment to customer service and
value. Leveraging our network infrastructure along with continuous development of new and
enhanced products and services are all driven by our focus on customers.
We commenced our strategic wireless infrastructure build in 2010. In 2009, we acquired
approximately 20 megahertz of spectrum across most of our cable footprint and received our
ownership compliance decision from Industry Canada. This year we started to expand our
infrastructure to include Wireless. We are building our network to ensure we have a variety of
options to deliver wireless services. The Wireless network will interconnect with extensive existing
infrastructure to enable the full potential of high-speed mobile applications for our customers.
OUR FINANCIAL RESULTS
During 2010 we delivered solid financial results, improving revenues and profits, and increasing
amounts returned to shareholders.
kConsolidated service revenue of $3.72 billion improved over 9% and service operating
income before amortization of $1.76 billion was up 14%.
kWe invested almost $850 million in our core Cable and Satellite capital infrastructure and
approximately $100 million on the Wireless infrastructure build.
kFree cash flow was $515 million.
kDividends paid to shareholders were over $370 million and almost $120 was invested in the
repurchase of shares.
OUR FOUNDATION FOR CUSTOMER GROWTH
The competitive environment continues to increase as telecommunication companies across our
operating areas aggressively expand their service offerings. Our focus on providing an exceptional
customer experience, offering superior products, and delivering them through our robust and
reliable infrastructure, all contributed to the solid foundation that delivers customer growth.
kWe had Basic subscriber growth of over 2,000 customers.
kDigital television customers increased almost 330,000 to 1.6 million, representing over 70%
of Basic customers taking the Digital television product.
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