Calgary-based Shaw Communications saw a near 13 per cent year-over-year decline in net income in its fiscal first quarter.
The telecommunications company reported Monday that net income of $162 million in the three months ended November 30, 2019, fell from $186 million for the same period in 2018.
“The decrease of $24 million was primarily due to $23 million in equity income recorded in the first quarter of fiscal 2019 attributable to the Company’s investment in Corus Entertainment Inc. This investment was disposed of in the third quarter of fiscal 2019,” said Shaw in a news release.
The company said consolidated revenue increased by 2.1 per cent to $1.38 billion and adjusted EBITDA increased 8.1 per cent year-over-year to $588 million.
“We continue to demonstrate consistent execution across our business units and remain focused on our growth segments including Wireless, Business and Broadband,” said Brad Shaw, Chief Executive Officer, in a statement.
“As the competitive landscape in wireless continues to intensify and evolve, our positioning in the market remains strong. Freedom Mobile’s reputation of providing high quality and affordable wireless services, not just during the highly competitive holiday period, but every day, resonates well with customers and through the introduction of Freedom Home Internet, we have reinforced our dual brand strategy that enables us to effectively segment the broadband market.”
In the first quarter of fiscal 2020, approximately 370 employees left Shaw bringing the total number of employees who departed under the Voluntary Departure Program to approximately 2,700, which represents approximately 84 per cent of the employees that accepted the VDP package, it said, adding that it expects to complete the VDP in fiscal 2020 and remains on track to achieve the anticipated annualized savings of $200 million.
Shaw said it continues to grow its wireless subscriber base, which is now over 1.7 million customers.