Freedom Mobile the star as Shaw profit matches estimates

Company’s wireless division added 85,014 subscribers, increased revenue by 45.3%

Shaw Communications had a $200-million profit in the fourth quarter of fiscal 2018, down from the same time last year but in line with estimates given significant changes undertaken by the cable, internet and wireless service provider. The company’s Freedom Mobile wireless division was clear- ly the star of the quarter, as it added 85,014 subscribers — more than double the additions a year earlier — and increased its fourth-quarter revenue by 45.3 per cent from last year.

Meanwhile, Shaw’s cable video and internet services underperformed expectations, with total revenue generating units (RGUs) declining by 59,231, compared with a gain of 24,352 a year earlier on the strength of its internet offering.

“Wireless had an exceptional year, with all of our key performance metrics moving in the right direction,” chief executive Brad Shaw told analysts Thursday in a conference call.

“In 2018, we grew our subscriber base by 255,000 — or 22 per cent — compared with (fiscal) 2017, to end the year at just over 1.4 million customers.”

Freedom’s subscriber growth gained momentum after the company began to sell Apple products for the first time in December.

It also upgraded its network with faster technology capable of using advanced features of most devices. Shaw’s management team said they expected Freedom to continue growth, both in its established markets as well as additional cities including the B.C. capital Victoria and Alberta’s Lethbridge, and Red Deer.

The larger part of Shaw’s business, providing home video products by cable and satellite and landline internet service, eked out a small revenue gain despite difficulties winning and keeping customers.