Shaw 2011 Annual Report Download - page 5

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Shaw Communications Inc.
REPORT TO SHAREHOLDERS
August 31, 2011
Dear fellow Shareholders:
As we look back, 2011 was a year of significant accomplishments for Shaw Communications
Inc., both operationally and financially. This was also a year of considerable change that
included the completion of the strategic acquisition of our new Media assets, our senior
leadership transition, the start of our digital network upgrade, our broadband leadership
initiatives including our Wi-Fi build, and our decision to not pursue a conventional wireless
business.
Looking back 40 years, to 1971 when we connected our first Cable customer, it’s exciting to see
Shaw today. We have evolved from a single product company to a diverse entertainment and
communications leader. We are a valued part of everyday life in more than 12 million homes,
entertaining and engaging our customers through our portfolio of specialty channels and
conventional programming delivered through high quality television in high definition. We connect
people to the world and each other through our broadband and phone services. We inform people
on the happenings around the globe and beyond through our news programming. We put our
customers first, working hard to provide an exceptional customer experience. We are constantly
looking for ways to improve and we challenge ourselves to continue to enhance our products and
services. We are a dynamic company, a successful operator, and a technology leader.
STRATEGIC INITATIVES
The year was highlighted by the completion of the acquisition of our broadcasting business,
Shaw Media, which has proven to be a key strategic asset and very attractive acquisition. The
division performed very well this year, showcasing its leading portfolio of specialty channels and
conventional programming. Shaw, including our executive team, was recognized in March
2011, receiving the 2010 Canadian Dealmaker of the Year Award for the Media and
Telecommunications Industry. This strategic acquisition allows us to unite broadcasting
services and content with our advanced distribution platforms to offer customers the choices
they want in this rapidly evolving competitive landscape.
Late in fiscal 2011 we made the decision to not pursue a conventional wireless build and
instead focus on initiatives that align with leveraging our Media and programming assets and
strengthening our leadership position in broadband and video. One of the broadband leadership
initiatives that recently commenced includes the build of a managed carrier-grade Wi-Fi
network to extend our customers’ broadband experience beyond their home. Shaw will become
the first service provider in Canada to deliver secure and reliable wireless broadband through an
extensive Wi-Fi network covering thousands of locations.
FINANCIAL PERFORMANCE
Consolidated revenue, operating income before amortization and free cash flow growth
continued in 2011 driven by the Media acquisition and increases in the core Cable and
Satellite divisions. We also continued to return value to shareholders.
ŠRevenue for the year improved 28% to $4.74 billion and operating income before
amortization was up over 15% to $2.03 billion.
ŠConsolidated free cash flow increased to $603 million.
ŠDuring 2011 we increased the dividend rate by approximately 5% and paid over $390
million in dividends.
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