Shaw 2014 Annual Report Download - page 10

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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2014
I. INTRODUCTION TO THE BUSINESS
A. Company overview – core business and strategies
Shaw Communications Inc. (“Shaw” or the “Company” or “Corporation”) is a diversified
communications and media company. Shaw serves 3.2 million consumers and businesses
through a reliable and extensive fibre network. Shaw provides consumers with broadband
Internet, WiFi, Digital Phone, and cable and satellite television. Shaw Business, provides
businesses with Internet, data, telephony, television and fleet tracking services, and ViaWest
provides collocation, cloud and managed services. Shaw Media provides Canadians with
engaging programming content through one of Canada’s largest conventional television
networks, Global Television, and numerous specialty networks. Shaw provides customers with
high-quality entertainment, information and communications services, utilizing a variety of
distribution technologies.
Shaw’s business is encapsulated within its vision statement: “We, the leading entertainment
and communications company, deliver exceptional customer experience through outstanding
people sharing Shaw values.”
Shaw’s strategy is to maximize shareholder value through the generation of free cash flow.1The
key elements of this strategy include: leveraging its network infrastructure and programming
assets to offer customers a wider variety of products and services; enhancing existing products
to provide greater value to customers; providing exceptional customer service; bundling product
offerings to provide value to both Shaw and the customer; and focusing on sound capital
management and operational efficiencies to maintain a competitive edge.
The strategy also includes promoting brand awareness, strengthening the Shaw name from
coast to coast. The Shaw brand is synonymous with diverse product offerings and high-quality
customer service.
During 2014 the Company operated three principal business segments: (1) Cable – comprised
of cable television, Internet, Digital Phone and Shaw Business operations; (2) Satellite –
comprised of direct-to-home (“DTH”) and Satellite Services; and (3) Media – comprised of
television broadcasting. As a percentage of Shaw’s consolidated revenues for the year ended
August 31, 2014, the Cable, Satellite and Media divisions represented approximately 63%,
16% and 21% of Shaw’s business, respectively. During 2014 Shaw’s businesses generated
consolidated revenues of $5.2 billion.
A fourth business segment, Wireless, was in the development/construction stage during 2010
and 2011. During 2008 the Company participated in the Canadian Advanced Wireless
Spectrum (“AWS”) auction and was successful in acquiring 20 megahertz of spectrum across
most of its cable footprint. In March 2010 the Company commenced activities on a traditional
wireless infrastructure build and late in 2011, after completing a strategic review of this
initiative, decided to not pursue a traditional wireless business. During 2013 the Company
entered into an agreement with Rogers Communications Inc. (“Rogers”) to grant Rogers an
option to acquire its wireless spectrum licenses. The potential option exercise for the sale of the
wireless spectrum licenses is subject to various regulatory approvals.
1See definitions under key performance drivers on page 21.
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