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Shaw Communications Inc.
Management’s Discussion and Analysis
August 31, 2015
In the first quarter of 2015, net income increased $35 million over the fourth quarter 2014 due to higher operating income
before restructuring costs and amortization of $81 million, partially offset by increases in amortization of $35 million and net
other costs of $17 million. The increase in net other costs was primarily due to an equity loss of $13 million in respect of the
Company’s 50% interest in shomi, a new subscription video-on-demand service launched in the first quarter.
In the fourth quarter of 2014, net income decreased $36 million primarily due to lower operating income before restructuring
costs and amortization of $76 million, partially offset by the effect of the restructuring announced during the previous quarter.
In the third quarter of 2014, net income increased $6 million due to higher operating income before restructuring costs and
amortization of $73 million and lower interest and amortization expense totaling $25 million, partially offset by restructuring
expenses of $53 million and reduction in net other revenue items of $41 million. The reduction in net other revenue items was
primarily due to the gain on sale of media assets of $49 million net of the $8 million of debt retirement costs recorded in the
second quarter.
In the second quarter of 2014, net income decreased $23 million due to lower operating income before restructuring costs and
amortization of $80 million and increased amortization of $8 million, partially offset by an improvement in net other non-
operating items of $36 million due to the aforementioned gain on sale of media assets net of debt retirement costs, and lower
income tax expense of $24 million. As a result of the aforementioned changes in net income, basic and diluted earnings per
share have trended accordingly.
The following growth (losses) in subscriber statistics are provided to assist in understanding the trend of quarterly revenue and
operating income before restructuring costs and amortization for Consumer:
2015 2014
Subscriber Statistics First Second Third Fourth First Second Third Fourth
Video – Cable (15,591) (35,967) (24,524) (39,315) (29,619) (20,758) (12,075) (20,166)
Video – Satellite (17,980) (8,254) (2,820) (8,146) (9,323) (1,405) (5,608) (6,606)
Internet 14,048 (1,819) 7,212 2,699 2,746 12,767 12,399 11,983
Digital phone lines (599) (12,027) (20,974) (29,683) 1,351 8,075 4,834 1,114
36 Shaw Communications Inc. 2015 Annual Report