Shaw 2013 Annual Report Download - page 6

S
haw
C
ommunications Inc
.
REP
O
RT T
OS
HAREH
O
LDER
S
August
31
,
2013
S
TRATE
G
I
C
TRAN
S
A
C
TI
O
N
S
D
uring the year we entered into a number of strategic transactions focused on optimizing our
p
ort
f
ol
i
oo
f
assets.
I
n January we announced a series of agreements with Rogers Communications Inc. (“Rogers”)
result
i
n
gi
n the sale o
f
Mounta
i
n
C
able, the
g
rant
i
n
g
o
f
an o
p
t
i
on to Ro
g
ers to ac
q
u
i
re ou
r
w
i
reless spectrum l
i
censes, and the acqu
i
s
i
t
i
on o
f
Rogers
i
nterest
i
n TVtropol
i
s. The Mounta
in
Cable and TVtropolis transactions closed in the year and the potential option exercise for the
sale o
f
the w
i
reless s
p
ectrum l
i
censes rema
i
ns sub
j
ect to re
g
ulator
y
a
pp
rovals and
i
sex
p
ecte
d
to c
l
ose i
n
fisca
l
2015
.
I
n March we announced a ser
i
es o
f
transact
i
ons w
i
th
C
orus Enterta
i
nment Inc.
(“C
orus”
)
resulting in the sale of our 49% interest in ABC Spark and 50% interest in two French language
n
etworks, Historia and Series+, and the ac
q
uisition of Corus’s interest in Food Network Canada
.
The AB
CSp
ark and Food Network
C
anada transact
i
ons closed
i
n the
y
ear, wh
i
le H
i
stor
i
aan
d
Series+ are expected to close in fiscal 2014
.
The ma
j
orit
y
of the ex
p
ected net
p
roceeds from these transactions, a
pp
roximatel
y
$800 million
o
nce all are closed, is planned for reinvestment back into the core business accelerating various
strate
g
ic ca
p
ital investments
.
Fi
nally,
i
n Apr
i
l we closed the acqu
i
s
i
t
i
on o
f
ENMAX Env
i
s
i
on Inc.
(“
Env
i
s
i
on”
)
, a company
providing leading telecommunication services to Calgary business customers. Shaw Business is
emer
gi
n
g
as a stron
g
com
p
et
i
tor
i
n
p
rov
i
d
i
n
g
enter
p
r
i
se-w
i
de solut
i
ons
f
or com
p
an
i
es o
f
all
s
i
zes
i
n
C
anada and we are
f
ocused on dr
i
v
i
ng cont
i
nued growth
i
nth
i
sd
i
v
i
s
i
on.
These strate
gi
c transact
i
ons create value and lon
g
-term
g
rowth
f
or our shareholders.
FINANCIAL PERFORMANC
E
O
ur d
i
sc
i
pl
i
ned
fi
nanc
i
al strategy enabled us to balance subscr
i
ber growth and pro
fi
tab
i
l
i
ty
i
n
a
h
ighly competitive market. We continue to focus on sustainable pricing strategies, customer
retent
i
on, and lon
g
term
g
rowth.
I
n fiscal 2013, we delivered 3% revenue growth and operating income before amortizatio
n
increased more than 4%. Free cash flow in fiscal 2013 was $604 million
,
a 25% increase over
t
he prev
i
ous year. Dur
i
ng the year we also
i
ncreased the d
i
v
i
dend by 5
%
, return
i
ng a total o
f
$
445 million to shareholders
.
O
ver the past
fi
ve years our d
i
v
i
dend has
i
ncreased over 4
0%
.
O
ur Board o
f
D
i
rectors
i
nd
i
cated
earlier this year that they plan to target dividend increases of 5% to 10% over each of the nex
t
t
wo
y
ears, assum
i
n
g
cont
i
nued
f
avorable market cond
i
t
i
ons
.
W
e have a solid balance sheet and healthy financial position providing the flexibility to invest i
n
o
ur bus
i
ness and take advanta
g
eo
f
strate
gi
co
pp
ortun
i
t
i
es wh
i
le su
pp
ort
i
n
g
the return o
f
ca
pi
tal
to sha
r
eholde
r
s
.
OUR COMMUNITIES
W
e believe being successful on the business front goes hand-in-hand with acting responsibly,
t
akin
g
action to reduce our environmental im
p
act, and
g
ivin
g
back to the communities where
we l
i
ve and work. We su
pp
ort a w
i
de var
i
et
y
o
fi
n
i
t
i
at
i
ves
i
nclud
i
n
g
those d
i
rected towards th
e
well-being of children and families, the environment, education, and the arts. During fisca
l
2013 we contributed almost $50 million throu
g
h cash and in kind contributions su
pp
ortin
g
an
arra
y
o
f
or
g
an
i
zat
i
ons and
i
n
i
t
i
at
i
ves
.
2