Growth stagnating as Rogers decision awaits

SHAW COMMUNICATIONS INC.

Shaw’s second quarter results, announced April 13, said revenue decreased two per cent to $1.36 billion compared with $1.38 billion last year.

In the second quarter, the company added around 16,900 new wireless customers, but wireless revenue decreased by 3.9 per cent to $323 million compared with the same time last year.

Increases in subscriptions saw its wireless service revenue grow by 9.2 per cent to $238 million, while wireless equipment revenue decreased 28 per cent to $85 million as the number of devices sold in the first quarter decreased compared to the previous year.

Since Rogers announced it would acquire the telecom company in March 2021, Shaw has stagnated and stopped investing to the same extent, Dolgin said.

“Quebecor has still been investing to grow and Shaw hasn’t been doing that as much,” he said. “For over a year Shaw has been rolling along with the expectation it will no longer be independent. The business is being run with that mindset.” Shaw was also working as the upstart national competitor in some of the most populated provinces, Dolgin said, but working to get a foothold in Quebec was not one of them.

“Shaw does not have nearly the same market share anywhere that it operates compared to the market share Quebecor has in Quebec,” said Dolgin.

Shaw’s stock dropped since the start of the week to close at $33.69 on May 12, well below the deal’s offer price of $40.50 per share.