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S
haw
C
ommunications Inc
.
MANA
G
EMENT’
S
DI
SCUSS
I
O
N AND ANALY
S
I
S
August
,
II.
S
UMMARY
O
F
Q
UARTERLY RE
S
ULT
S
Q
uarter Revenue
Operating
i
n
co
m
e
befo
r
e
a
m
o
r
ti
z
atio
n
(
1)
Net income
att
r
ibutab
l
e
to e
q
u
i
t
y
sha
r
eholde
r
s
Net
i
n
co
m
e
(
2
)
Basic
earn
i
n
gs
p
er s
h
ar
e
D
i
l
uted
earn
i
n
g
s
p
er s
h
ar
e
($
millions Cdn except per share amounts)
2013
Fourth
1
,
2
4
6
4
96 111 11
7
0
.
2
4
0
.
24
T
h
i
rd
1
,
326
5
8
5
239 2
5
00
.5
20
.5
2
S
econd 1
,
251 538 172 182 0.38 0.38
First 1
,
319 601 224 235 0.50 0.49
T
otal 5,142 2,220 746 784 1.64 1.6
3
2012
Fourth
1
,
210
5
01 129 133 0
.
28 0
.
28
T
hird 1,278 567 238 248 0.53 0.5
3
S
econd 1
,
231 493 169 178 0.38 0.38
First 1
,
279 566 192 202 0.43 0.4
3
T
otal 4,998 2,127 728 761 1.62 1.6
1
(1) See key performance drivers on page 20
.
(2) Net income attributable to both equity shareholders and non-controlling interests.
Q
uarterl
y
revenue and o
p
erat
i
n
gi
ncome be
f
ore amort
i
zat
i
on are
p
r
i
mar
i
l
yi
m
p
acted b
y
the
seasonality of the Media division and fluctuate throughout the year due to a number of factor
s
includin
g
seasonal advertisin
g
and viewin
gp
atterns. T
yp
icall
y
, the Media business has hi
g
he
r
revenue
i
n the
fi
rst
q
uarter dr
i
ven b
y
the
f
all launch o
f
season
p
rem
i
eres and h
ig
h demand an
d
t
he third quarter which is impacted by season finales and mid season launches. Advertising
revenue t
yp
icall
y
declines in the summer months of the fourth
q
uarter when viewershi
p
is
g
enerall
y
lower.
Op
erat
i
n
gi
ncome be
f
ore amort
i
zat
i
on
i
n
fi
scal
2012
was also
i
m
p
acted b
y
h
igher operating costs in the Cable division in the first and second quarters which include
d
h
i
g
her em
p
lo
y
ee related costs, mainl
y
related to brin
g
in
g
the new customer service centres on
l
i
ne, as well as h
ig
her market
i
n
g
, sales and
p
ro
g
ramm
i
n
g
costs. The th
i
rd and
f
ourth
q
uarters o
f
2012 benefited from improved operating income before amortization in the Cable business.
N
et
i
ncome has
f
luctuated
q
uarter-over-
q
uarter
p
r
i
mar
i
l
y
as a result o
f
the chan
g
es
i
no
p
erat
i
n
g
i
ncome be
f
ore amort
i
zat
i
on descr
i
bed above and the
i
mpact o
f
the net change
i
n non-operat
i
ng
items. In the fourth quarter of 2013, net income decreased
$
133 million due to lower
op
eratin
g
income before amortization of $89 million and reduction in net other revenue item
s
o
f $67 million partially offset by lower income taxes of $34 million. The reduction in net other
revenue items was mainly due to the gain on sale of Mountain Cable of
$
50 million recorded i
n
t
he third
q
uarter and write-down of a real estate
p
ro
p
ert
y
of $14 million in the fourth
q
uarter
.
I
n the third quarter of 2013, net income increased by $68 million due to increased operating
income before amortization of
$
47 million, the aforementioned gain on sale of Mountain Cable
and the
g
a
i
n on sale o
f
the s
p
ec
i
alt
y
channel AB
CSp
ark
p
art
i
all
y
o
ff
set b
y
h
ig
her
i
ncome taxes
o
f $30 million and acquisition and divestment costs in respect of the transactions with Roger
s
and the acquisition of Envision. In the second quarter of 2013, net income decreased
$
53 million
p
rimaril
y
due to lower o
p
eratin
g
income before amortization of $63 million
p
artiall
y
o
ffset by lower income taxes of $5 million. In the first quarter of 2013, net income increase
d
39