Shaw Communications Suffers 2% Revenue Decline In Q2 As Omicron Variant Peaked In Canada

Shaw Communications Inc SJR reported a second-quarter FY22 revenue decline of 2% year-on-year to C$1.36 billion. EPS was C$0.39.
Adjusted EBITDA declined 0.8% to C$632 million, and the margin expanded by 60 bps to 46.5%.
Wireline revenue decreased 1.3% Y/Y to C$1.04 billion, and Wireless revenue decreased 3.9% to C$323 million.
The Wireless postpaid churn of 1.46% improved 21 bps compared to last year.
The company added ~16,900 new Wireless customers. The postpaid net addition was ~8,600 in the quarter, down Y/Y due to increased wireless competition, a limited supply of critical devices, and bundle adjustments.
The quarter's free cash flow stood at C$217 million.
Shaw Communications' net debt leverage ratio was 2.2x at the end of February 28.
The company registered Wireless ARPU of C$36.43, a decrease of 1.1% Y/Y, and ABPU of C$37.38, a reduction of 8.8% Y/Y.
Throughout the second quarter, which experienced the peak of the omicron variant of COVID-19 across Canada, the company said it remained focused on the safety of its people, most of whom continue to work from home, comply with guidelines, and requirements issued by various health authorities and government organizations.
Price Action: SJR shares closed lower by 0.45% at $30.90 on Tuesday.