Tag: Q3

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Mobile Syrup

Shaw’s revenue declined by 2.1 percent in the third quarter

Shaw’s third-quarter financial report shows its revenue is remains in decline, continuing the downwards direction it shared in its Q2 report.

The company decreased its Q3 revenue by 2.1 percent year-over-year.

Financial contributions from Shaw’s wireless division offset this figure, which increased its financial contribution by $13 million (or 4.4 percent) compared to Q3 2021. The company reported $20 million in revenue from an increased subscriber base but this figure was offset by $7 million in decreased equipment revenue.

Shaw added 35,012 new subscribers and 19,392 were postpaid, a decrease year-over-year. It said this was because of “strong wireless competition,” limited access to devices, bundle adjustment, and “moderating” demand for its plans.

The company reported a similar revenue decrease for its wireline division, which dropped by almost four percent. The company lost more than 24,000 paying users.

Freedom Mobile

Shaw doesn’t plan to keep Freedom Mobile under its control for much longer. Along with Rogers, the company decided to sell Freedom Mobile to Québecor in order to appease competition concerns.

“We feel strongly that the sale of Freedom to Québecor will be seen as a positive outcome by the regulators as Quebecor expands their successful wireless operations through this acquisition,” Brad Shaw, Shaw’s CEO, said.

The three companies are working to finalize documentation by July 15th, Shaw notes. Regulatory bodies need to approve the sale, but that won’t happen until they finalize Rogers’ takeover of Shaw.

The two companies are taking part in a mediation process with the Commissioner of Competition this week. The commissioner filed to block the merger in May, stating it isn’t a good deal for Canadians. Shaw and Rogers filed their own responses stating the commissioner’s reasoning was flawed. If mediation fails, the commissioner’s application will go before the tribunal towards the end of the year.

Image credit: Shutterstock

Source: Shaw

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Mobile Syrup

Rogers reports record Q3 postpaid wireless net additions as profits dip

Profits are down, but postpaid wireless subscribers are way up, according to Rogers’ third quarter financial results for 2021.

The Toronto-based telecom giant gained 175,000 net new postpaid wireless subscribers in Q3 2021 — its best result in 13 years, according to the report.

For context, postpaid monthly subscribers refers to contracts where customers are billed for mobile services at the end of each month — think bundles and packages — as opposed to prepaid or pay-as-you-go subscriptions where the customer pays upfront.

By comparison, the number of postpaid wireless net additions reported by Rogers earlier this year, in Q2, was 99,000 — which itself was a significant improvement from the 1,000 postpaid wireless net losses the carrier reported in Q2 2020

In terms of terms of income and revenue, however, Rogers’ Q3 report was less celebratory.

The carrier reported a net income of $490 million in Q3 2021, down four percent from last year’s $512 million in Q3 2020.

Meanwhile, total revenue stayed nearly unchanged — by billionaire standards, mind you — with Rogers reporting $3,666,000,000 in Q3 2021, compared to $3,665,000,000 in Q3 2020.

Q3 covers the three-month fiscal period of July, August, and September, which ended on September 30th.

If you weren’t already keeping up on this month’s unexpected season of Succession: Canadian Telecom Edition, the Rogers family seems to be in the middle of a corporate power struggle.

According to insider reports, company chairperson Edward Rogers tried — unsuccessfully — to oust CEO Joe Natale and replace him with chief financial officer Tony Staffieri, with Staffieri losing their job as a result.

The attempted coup reportedly failed because Melinda Hixon-Rogers, deputy chair of the company and Edward’s sister, opposed her brother’s plan, as did most of the board — which includes several other Rogers family members, including another sister, Martha Rogers, and their mother, Loretta Rogers.

The company is also trying to seal the deal on a lucrative —and contentious — purposed merger with Shaw Communications, which still needs federal approval from the Canadian Radio-television and Telecommunications Commission (CRTC), the Competition Bureau, and the Department of Innovation, Science and Economic Development.

Source: Rogers