Shaw 2012 Annual Report Download - page 6

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Shaw Communications Inc.
REPORT TO SHAREHOLDERS
August 31, 2012
Our people are vital to everything we do. The passion, commitment and dedication that
everyone at Shaw brings to work everyday allows us to execute against our priorities and deliver
to our customers. We recently were honored to learn that Shaw was named among Canada’s Top
100 Employers for 2013.
FINANCIAL PERFORMANCE
We delivered solid financial results in fiscal 2012 as we took steps to balance subscriber
growth and profitability in a highly competitive market. We are focused on disciplined and
sustainable pricing strategies, customer retention and long term growth. During 2012
consolidated revenue and operating income before amortization improved and we made prudent
capital investment decisions focused on ensuring that long term value and profitability is being
generated. We also increased our dividend, as we return capital value to shareholders.
ŠRevenue for the year improved 5% to $5.0 billion and operating income before
amortization was up 4% to $2.13 billion.
ŠWe invested over $900 million in our core Cable and Satellite capital infrastructure and
approximately $30 million in Media.
ŠFree cash flow for the year was $482 million.
ŠWe increased our dividend during 2012 by 6%, paying a total of $416 million.
Our capital structure and healthy liquidity position support investment grade ratings. We enter
2013 with a strong balance sheet and solid cash flows providing the financial flexibility to
invest in our network, take advantage of strategic opportunities, and grow shareholder returns.
OPERATING HIGHLIGHTS
Fiscal 2012 marked the first full year of inclusion of our Shaw Media division. Although
conventional advertising revenues were affected by continued economic uncertainty, the
business performed well, capitalizing on its strong specialty portfolio.
Our subscriber growth during the year was balanced as telecommunication companies across
our footprint competed to expand their service offerings.
ŠDuring 2012 we added 35,000 Internet subscribers, maintaining one of the strongest
broadband businesses in North America. The equivalent of 86% of Basic subscribers now
take these services.
ŠDigital Phone continues to be popular. As at August 31, 2012 we had over 1.3 million
Digital Phone lines. Customer growth of 131,000 lines was achieved in fiscal 2012, with
the equivalent of 61% of Basic subscribers taking these services.
ŠDigital customers grew by 98,000, to total more than 1.9 million at August 31, 2012,
representing a penetration of over 86% of Basic cable. During the year we lost 71,000
Basic cable subscribers and gained 1,000 Shaw Direct DTH subscribers.
In addition to the DNU and WiFi build initiatives, we also focused on expanding Shaw Business
service offerings, increasing the serviceable footprint and growing our business sales force.
Through leveraging our existing and new fibre investments we believe Shaw Business provides
an attractive growth opportunity.
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