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S
haw
C
ommunications Inc
.
MANA
G
EMENT’
S
DI
SCUSS
I
O
N AND ANALY
S
I
S
August
,
SU
B
SC
RIBER
S
TATI
S
TI
CS
2
013 2012 Growth
S
h
a
wD
i
r
ect custo
m
e
r
s
(1)
903
,5
6
5
910,023 (6,
45
8)
(1)
Includ
i
n
g
seasonal customers who tem
p
orar
i
l
y
sus
p
end the
i
r serv
i
ce.
O
PERATING HIGHLIGHT
S
Š
Wi
th the success
f
ul launch o
f
An
i
k
G1, S
haw D
i
rect added over
1
4
0
channels to
i
ts
off
er
i
ngs pr
i
mar
i
ly
i
n HD.
Š
Shaw Direct subscribers decreased by 6,458 to 903,565.
R
evenue of $860 million for 2013 was u
p
1.9% over last
y
ear
p
rimaril
y
due to rate increase
s
partially offset by increased promotional activity and lower subscribers
.
O
p
eratin
g
income before amortization of
$
285 million decreased 2.7% com
p
ared to 2012. Th
e
revenue related
g
rowth and broadcast license fee ad
j
ustment of $4 million were more than
o
ffset by higher employee related amounts, operating costs related to the new Anik G1
t
rans
p
onders, as well as increased
p
ro
g
rammin
g
fees and marketin
g
ex
p
enses
.
Total capital investment of $123 million for the current year compared to $94 million in th
e
prior year. The higher spend in 2013 was mainly due to the final payment related to the Ani
k
G1
trans
p
onders.
The An
i
k
G1
satell
i
te success
f
ully launched
i
n Apr
i
l, and
i
n May
S
haw D
i
rect took control o
f16
t
ransponders. Shaw Direct now offers over 650 channels of which more than 200 are HD
.
C
urrentl
y
over 7
0%
o
f
customers have e
q
u
ip
ment ca
p
able o
f
access
i
n
g
HD
p
ro
g
ramm
i
n
g
.
S
ha
w
D
irect also offers streaming VOD to the satellite receiver with almost 10,000 available titles.
MEDIA
FINAN
C
IAL HI
G
HLI
G
HT
S
(
$millions Cdn
)
2
013 201
2
Change
%
R
evenu
e
1
,
106
1,0
5
3
5.
0
O
perat
i
ng
i
ncome be
f
ore amort
i
zat
i
on
(
1)
3
5
3
332 6
.
3
C
ap
i
tal expend
i
tures:
Broadcast and transmission
1
312 8.3
Bu
i
ld
i
n
g
s
/
other
18
19 (
5.
3)
31
3
1—
Other adjustments:
C
RT
C
bene
fi
t obl
ig
at
i
on
f
und
i
n
g
(
5
2)
(
4
8) 8
.
3
Non-controlling interest
s
(
39)
(
34) 14.
7
Op
erat
i
n
g
mar
gi
n
(1)
31
.
9%
31
.
5% 0
.
4
(1) S
ee ke
yp
er
f
ormance dr
i
vers on
p
a
g
e
20.
4
9