Shaw 2012 Annual Report Download - page 53

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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2012
SUBSCRIBER STATISTICS
2012 2011 Growth
Shaw Direct customers(1) 910,023 908,883 1,140
(1) Including seasonal customers who temporarily suspend their service.
OPERATING HIGHLIGHTS
ŠSatellite revenue of $844 million improved 2.1% over the comparable period
ŠOperating income before amortization of $293 million improved 1.4%
Revenue of $844 million for 2012 was up 2.1% over last year. The improvement was primarily
due to customer rate increases. Operating income before amortization improved 1.4%.
Total capital investment of $94 million decreased over last year primarily due to the deposit for
the Anik G1 satellite included in the prior year partially offset by higher investment in the
current period on satellite related ground equipment. The launch of the satellite, originally
expected to occur this fall, has been delayed as a result of issues experienced on an unrelated
satellite launch, and Anik G1 is now expected to launch early in calendar 2013.
During 2012, Shaw Direct started offering a video on demand service using adaptive streaming
technology through the satellite receiver. This new internet based service currently has over
3,000 movie and TV titles available. In addition, with their television subscription package,
Shaw Direct customers now have access to the Shaw Go apps, including the recently launched
Shaw Go Movie Central and Shaw Go NFL Sunday Ticket.
MEDIA
FINANCIAL HIGHLIGHTS
($millions Cdn)
Year ended
2012
Period from
October 27, 2010 to
August 31, 2011
Change
%
Revenue 1,053 891 18.2
Operating income before amortization(1) 332 252 31.7
Capital expenditures:
Broadcast and transmission 12 15 (20.0)
Buildings/other 19 12 58.3
31 27 14.8
Other adjustments:
CRTC benefit obligation funding (48) (30) 60.0
Non-controlling interests (34) (20) 70.0
Operating margin(1) 31.5% 28.3% 3.2
(1) See key performance drivers on page 20.
49