Shaw 2015 Annual Report Download - page 46

Download and view the complete annual report

Please find page 46 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
a focus on IT security. The acquisition of AppliedTrust had minimal effect on operating results for the year. Also, the Company
opened two new facilities in the fall of 2015: the Hillsboro, Oregon flagship facility with over 50,000 square feet of space and
the Calgary, Alberta facility.
Media
Financial highlights
(millions of Canadian dollars) 2015 2014
Change
%
Revenue 1,080 1,096 (1.5)
Operating income before restructuring costs and amortization(1) 342 353 (3.1)
Operating margin(1) 31.7% 32.2% (0.5)pts
(1) Refer to Key performance drivers.
Revenue and operating income before restructuring costs and amortization for the year were $1.08 billion and $342 million,
respectively, compared to $1.10 billion and $353 million for the prior year. The revenue decline was primarily due to reduced
advertising revenues on specialty channels and the effect of the disposition in the prior year of Historia and Series+, which was
partially offset by increased subscriber and other revenues. Operating income before restructuring costs and amortization
declined due to the net revenue decrease and was partially offset by lower employee related, advertising, promotion and various
other costs. The prior year benefited by $6 million related to Historia and Series+ and $6 million related to a distant signal
retransmission royalty adjustment while fiscal 2015 included $12 million of transactions with shomi.
Global delivered solid programming results throughout 2015 with a number of programs ranking in the top 10 or top 20
nationally and across multiple major markets during the year. The conventional fall programming premiered through the month
of September and into October with a solid returning line-up combined with new programming.
Throughout the year, Media’s specialty portfolio held solid positions in the channel rankers and closed out the year with 6 of
the top 20 channels. The fall programming launched in late fiscal 2015 with a strong stable of returning shows along with new
programming.
Global News continues to retain the number one position in the western markets and continued focus on online and mobile
audiences have delivered strong growth in both page and video views. In addition, Global National was recognized as Best
National Newscast at the Canadian Screen Awards while Globalnew.ca was honoured with the Edward R. Murrow Award for the
best news website outside of the U.S. Further, the Media division continues to strengthen its position in efficient delivery of
news with the recent consolidation of the production of its national and international segments for the morning news shows and
has implemented a streamlined process to deliver local late night and weekend newscasts into all markets.
44 Shaw Communications Inc. 2015 Annual Report