Shaw 2015 Annual Report Download - page 44

Download and view the complete annual report

Please find page 44 of the 2015 Shaw annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 110

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110

Shaw Communications Inc.
Management’s Discussion and Analysis
August 31, 2015
Subscriber statistics
August 31,
2015
August 31,
2014 Change
Consumer
Video – Cable 1,764,523 1,867,304 (102,781)
Video – Satellite 811,988 850,132 (38,144)
Internet 1,774,374 1,761,881 12,493
Phone 1,027,266 1,110,708 (83,442)
5,378,151 5,590,025 (211,874)
Business Network Services
Video – Cable 77,709 90,325 (12,616)
Video – Satellite 31,435 30,491 944
Internet 178,167 168,520 9,647
Phone 284,785 264,626 20,159
572,096 553,962 18,134
5,950,247 6,143,987 (193,740)
SEGMENTED OPERATIONS REVIEW
Consumer
Financial highlights
(millions of Canadian dollars) 2015 2014
Change
%
Revenue 3,752 3,768 (0.4)
Operating income before restructuring costs and amortization(1) 1,686 1,669 1.0
Operating margin(1) 44.9% 44.3% 0.6pts
(1) Refer to Key performance drivers.
Consumer revenue for the year of $3.75 billion declined 0.4% compared to last year. The effect of price adjustments and
growth in Internet was offset by higher promotional costs, reduced On-Demand revenues and lower video and phone
subscribers.
Operating income before restructuring costs and amortization of $1.69 billion increased 1.0% over the prior year. The
improvement was primarily driven by revenue related growth attributed to rate increases partially offset by lower video and
phone subscribers, higher programming fees and promotional discounts.
The current year also includes the effect of implementing the CRTC decision that mandated telecommunication providers could
no longer require customers to provide a minimum 30 day cancellation notice. The reduction in revenue and operating income
before restructuring costs and amortization for the 7.5 months affecting fiscal 2015 is approximately $13 million and $10
million, respectively.
During the current year, the Company announced the reorganization of its call centre operations around centres of expertise
including technical service, sales and billing, loyalty care, technical field support, e-Care, payment solutions and satellite
operations. The closure of the Edmonton contact centre and the downsizing of the Kelowna location were completed in the
current year with customer care roles realigned through expansions in Victoria, Vancouver, Winnipeg and Mississauga around
centres of expertise. The reorganization is expected to be substantially complete in January 2016 when the Calgary call centre
operations will close.
42 Shaw Communications Inc. 2015 Annual Report