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LONDON, UK / ACCESSWIRE / January 17, 2017 / Active Wall St. announces its post-earnings coverage on Shaw Communications Inc. (NYSE: SJR). The Company reported its first quarter fiscal 2017 results on January 12, 2017. The communications and media Company's earnings numbers fell 59% due to a non-recurring provision related to the wind down of its investment in video streaming service Shomi. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Shaw Communications' competitors within the CATV Systems space, Charter Communications, Inc. (NASDAQ: CHTR), is estimated to report earnings on February 02, 2017. AWS will be initiating a research report on Charter Communications following the release of its next earnings results.

Today, AWS is promoting its earnings coverage on SJR; touching CHTR. Get our free coverage by signing up to:

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http://www.activewallst.com/registration-3/?symbol=CHTR

Earnings Reviewed (All numbers are reported in Canadian dollars, except stock performance)

For the three months ended November 30, 2016, Shaw Communications' consolidated revenue from continuing operations totaled $1.3 billion increased by 14.9% over the comparable period. The increase in revenue was primarily attributed to the acquisition of Freedom Mobile on March 01, 2016, that contributed $138 million to its Wireless segment's revenues.

During Q1 FY17, , Shaw Communications' operating income before restructuring costs and amortization of $539 million improved 6.1% over the comparable period. Excluding the results of the Wireless division, revenue for the reported quarter from the combined Consumer, Business Network Services, and Business Infrastructure Services divisions was up 2.8% and operating income before restructuring costs and amortization for Q1 FY17 remained flat over the comparable period.

For Q1 FY17, Shaw Communications' net income decreased by $129 million relative to Q1 FY16 net income of $218 million, primarily due to a non-recurring provision in the amount of $107 million related to the wind down of its investment in Shomi. Net income in the quarter also reflects a decrease in income from discontinued operations, net of tax, in the amount of $80 million due to the sale of the former Media division in Q3 FY16 which is offset partially by the equity income of $27 million in the reported quarter from the company's investment in Corus.

Segment Results

In Q1 FY17, Shaw Communications' Consumer revenue generating units ("RGUs") declined by 29,696, an improvement over the 43,750 loss in Q1 FY16. This y-o-y improvement was driven by a reduction in cable video and phone RGU losses in addition to strong Internet RGU net gains of 16,669 reflecting a full quarter impact of its WideOpen Internet 150 offering launched in August 2016. The decline in Consumer RGUs was also largely impacted by the anticipated seasonal disconnections of satellite Video subscribers in the amount of 15,704 RGUs. In the Wireless segment, the Company added approximately 9,500 RGUs, a shortfall from the net gains achieved in Q4 FY16. The period ended with 6,801,706 RGUs, inclusive of 1,052,758 Wireless subscribers. Wireless subscribers increased by 9,470 in Q1 FY17.

During Q1 FY17, Shaw Communications' Consumer segment recorded quarterly revenues of $947 million, up 0.4% from $943 million in Q1 FY16. The segment's operating income before restructuring costs and amortization totaled $405 million, as compared to $419 million in the year ago period. For the Business Network Services segment, Shaw Communications' reported net revenue of $144 million, up 5.9% from revenue of $136 million in Q1 FY16. The division recorded operating income before restructuring costs and amortization of $72 million, up 12.5% on a y-o-y basis.

For Q1 FY17, Shaw Communications' Business Infrastructure Services division generated revenue of $90 million, up 23.3% compared to revenue of $73 million in Q1 FY16. The segment's operating income before restructuring costs and amortization totaled $32 million, up 28% on a y-o-y basis.

Cash Flow, Shareholder Returns, and Adjusted Net Debt

Shaw Communications' consolidated free cash flow for Q1 FY17 totaled $158 million compared to $173 million in the prior year. The decrease for the quarter was largely due to the loss of free cash flow generated by the former Media division and higher planned capital expenditures from continuing operations driven by the addition of the Wireless division. As on November 30, 2016 Shaw Communications had cash and total outstanding debt of $289 million and $5.36 billion as compared to $398 million and $5.25 billion, respectively, at the end of Q4 FY16.

In related news on January 12, 2017, Shaw Communications announced that its Board of Directors has declared monthly dividends of $0.09875 on the Class B Non-Voting Participating Shares and $0.098542 on the Class A Participating Shares, payable on each of March 30, 2017, April 27, 2017, and May 30, 2017, to holders of record at the close of business on March 15, 2017, April 13, 2017 and May 15, 2017, respectively.

Outlook

For FY17, Shaw Communications is expecting operating income before restructuring costs and amortization to be in the range of $2.125 billion and $2.175 billion. Free cash flow is expected to exceed $400 million. Consolidated capital investment targets also remain unchanged from previously provided guidance at $1.3 billion for FY17.

Stock Performance

Shaw Communications' share price finished last Friday's trading session at $21.24, slightly up 0.81%. A total volume of 384.25 thousand shares exchanged hands, which was higher than the 3 months average volume of 378.97 thousand shares. The stock has advanced 12.88% and 29.54% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 6.26%. The stock is trading at a PE ratio of 30.43 and has a dividend yield of 4.19%.

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SOURCE: Active Wall Street