Shaw 2014 Annual Report Download - page 5

Shaw Communications Inc.
REPORT TO SHAREHOLDERS
August 31, 2014
Dear Fellow Shareholders:
Our performance in fiscal 2014 reflects our continued focus on the delivery of exceptional
experiences and leading technology to our customers and viewers, a disciplined focus on
operational efficiencies, and sound capital management creating value for all stakeholders.
We believe our past and future success has been, and will continue to be, a direct result of our
commitment to understand and meet the needs of our customers and viewers. During fiscal
2014 we have continued to take steps to evolve our business as we seize the opportunities and
address the challenges of today’s environment. The shift over the last several years in how
Canadians connect with one another and consume entertainment and other content continues
to change our business and the telecommunication landscape. To remain competitive, we have
chosen to become a network and content experience company.
We have leveraged the strength of our leading network infrastructure and our access to great
content to launch services that Canadians can enjoy on any device they choose. During the past
year we partnered to expand our offerings to include a music streaming service from Rdio and
online shopping through shop.ca, and we also launched several apps for mobile devices that
expanded our robust suite of TV Everywhere offerings. Most recently we launched video
streaming from shomi – a made-in-Canada on-line content experience service with cutting-edge
customization and an impressive depth of programming choice.
We are a leader in customer-friendly innovation. Shaw Go WiFi has brought an entirely new
connectivity experience to Western Canadians. As Canada’s largest WiFi network, Shaw Go WiFi
brings our customers seamless coverage through more than 45,000 access points. Our
customers have registered more than 1.25 million devices for use on Shaw Go WiFi.
We are identifying areas for growth that are meaningful for our customers today and in years to
come. In September 2014, we closed the acquisition of ViaWest, Inc., which provides us with a
growth platform in the attractive North American data centre sector and is a significant step in
expanding our technology offerings for mid-market businesses in Western Canada. The
experience and expertise of the ViaWest management team will drive the next phase of that
business’ growth in the U.S. while accelerating the development of our domestic data centre
platform.
Shaw reaches virtually all Canadians through our business. We serve over three million
Canadian households with broadband Internet, WiFi, digital phone and video services, and we
deliver Global Television to almost all Canadian homes, along with the 19 specialty networks of
Shaw Media. We take seriously our responsibility to earn the trust and business of each of these
customers and viewers and know their loyalties are constantly tested in today’s dynamic
environment through fierce competition from an increasing number of networks, content and
service providers. We thrive on this rivalry, challenging ourselves everyday to better serve our
customers.
FINANCIAL AND OPERATIONAL PERFORMANCE
Our diligent cost management and disciplined pricing approach to the market continues to
resonate in our financial results.
In fiscal 2014, we delivered revenue and operating income before restructuring and
amortization growth of 2%. After considering the impact of acquisitions and dispositions,
operating income before restructuring and amortization growth was 3%. Free cash flow for the
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