Shaw 2011 Annual Report Download - page 64

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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2011
MEDIA
FINANCIAL HIGHLIGHTS
($000’s Cdn)
October 27, 2010 to
August 31, 2011 (3)
Revenue 890,913
Operating income before amortization (1) 251,561
Capital expenditures:
Broadcast and transmission 15,107
Buildings/other 11,953
27,060
Free cash flow before the following 224,501
Less:
Interest (2) (53,237)
Cash taxes (24,600)
Other adjustments:
Non-cash stock-based compensation 842
CRTC benefit obligation funding (30,357)
Non-controlling interests (19,808)
Free cash flow (1) 97,341
Operating margin (1) 28.2%
(1) See key performance drivers on page 20.
(2) Interest includes an allocation to the Media division based on the cost of debt incurred by
the Company to repay Media debt.
(3) On October 27, 2010, the Company completed the acquisition of 100% of the
broadcasting businesses of Canwest. The acquisition included all of the OTA channels and
the specialty television business, including Canwest’s equity interest in CW Media.
OPERATING HIGHLIGHTS
ŠOn October 27, 2010 Shaw completed the final steps in its purchase of all of the
broadcasting assets of Canwest. Collectively these assets, including the Global Television
Network and over 20 Specialty services, form Shaw Media, a new division of Shaw.
ŠThe aggregate purchase price for the Canwest broadcasting assets, including the amounts
paid to acquire the shares of CW Media from affiliates of Goldman Sachs Capital Partners
and the debt assumed at CW Media, was approximately $2.0 billion.
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