Shaw 2013 Annual Report Download - page 54

S
haw
C
ommunications Inc
.
MANA
G
EMENT’
S
DI
SCUSS
I
O
N AND ANALY
S
I
S
August
31
,
2013
O
PERATIN
G
HI
G
HLI
G
HT
S
Current
y
ear revenue of $1.11 billion and o
p
eratin
g
income before amortization of $353 millio
n
compared to
$
1.05 billion and
$
332 million, respectively, for the prior year. Improve
d
advertisin
g
and subscriber revenues were
p
artiall
y
reduced b
y
hi
g
her
p
ro
g
rammin
g
costs, and
i
ncreased ex
p
enses
i
nclud
i
n
g
em
p
lo
y
ee related amounts due to
g
rowth and mer
i
t
i
ncreases, and
various other. The current year also benefited from an expense adjustment of
$
3 million to alig
n
certain broadcast license fees with the CRTC billing period.
Global delivered solid programming results throughout the year with key shows such as Survivor
,
NC
I
S
, Bones and Hawa
ii
5-
0
. The convent
i
onal
f
all
p
ro
g
ramm
i
n
gp
rem
i
ered throu
g
h the mont
h
o
f September and into early October, with a solid returning line-up combined with new dram
a
programming that includes The Blacklist, Sleepy Hollow and Dracula. Shaw Media also adde
d
several new comed
i
es to the
f
all schedule
i
nclud
i
n
g
The M
i
llers,
S
ean
S
aves the World, and The
Mic
h
ae
l
J
F
o
x
S
h
o
w
.
I
n early
S
eptember
G
lobal
G
o launched prov
i
d
i
ng
2
4
/
7 stream
i
ng o
fG
lobal content plus
f
ull
i
n-
season stacking for key properties, making Shaw Media the first conventional broadcaster in
C
anada to o
ff
er
i
n-season stack
i
n
g.
Throu
g
hout the
y
ear, Med
i
a’s s
p
ec
i
alt
yp
ort
f
ol
i
o cons
i
stentl
y
lead
i
n the channel rank
i
n
g
s
i
n the
Adult
2
5-54 category and closed out the year w
i
th 4 o
f
the Top
10
analog channels, and
6
o
f
t
he Top 10 digital channels. National Geographic Canada, Action, Lifetime and MovieTime held
t
he to
p
4d
igi
tal
p
os
i
t
i
ons. DT
O
UR, a new l
if
est
y
le channel, launched
i
n late Au
g
ust add
i
n
g
t
o
S
haw Med
i
a’s port
f
ol
i
oo
f
spec
i
alty channels
.
G
lobal News cont
i
nues to ma
i
nta
i
n the number one pos
i
t
i
on
i
n the Vancouver,
C
algary an
d
E
dmonton markets and was the go to source for coverage of the Southern Alberta floods tha
t
o
ccurred
i
n late June. In add
i
t
i
on
,G
lobal launched a B
C
All News
C
hannel
,G
lobal News: B
C1,
as well as Morn
i
ng News programs
i
n Hal
if
ax and Montreal and a nat
i
onal hal
f
hour morn
i
ng
show in the current year. During 2013, Global News was the winner of the prestigious Edwar
d
R
. Murrow Award
f
or overall News excellence
i
n network telev
i
s
i
on
,
the
fi
rst
C
anad
i
an network
t
o earn that recogn
i
t
i
on
i
n the awards 4
2
year h
i
story
.
The Med
i
a bus
i
ness was recogn
i
zed dur
i
ng
2013
by the
C
anad
i
an
C
able
S
ystems All
i
ance a
s
B
roadcast Supplier of the Year for its ongoing partnership and support of the independent
s
y
stems
i
n
C
anada.
C
a
pi
tal
i
nvestment cont
i
nued on var
i
ous
p
ro
j
ects
i
n the current
y
ear and
i
ncluded u
pg
rad
i
n
g
production equipment, infrastructure and facility investments
.
IV. FINAN
C
IAL P
OS
ITI
ON
Total assets were $12.7 billion at Au
g
ust 31, 2013 and Au
g
ust 31, 2012. Followin
g
is
a
d
iscussion of significant changes in the consolidated statement of financial position since
August 31, 2012
.
Current assets increased
$
144 million primarily due to the reclassification of assets held for
sale of $116 million and increase in accounts receivable of $53 million
p
artiall
y
offset b
ya
d
ecrease in other current assets of
$
17 million. Assets held for sale include the assets o
f
H
istoria and Series+ totaling
$
105 million, the majority of which is comprised of intangible
s
and $11 million in res
p
ect of a
p
ro
p
ert
y
which will be sold. Accounts receivable increased du
e
t
o the combination of rate increases, timing of collection of trade receivables, higher advertising
50