SJR - SJR STOCK NEWS

Shaw Communications reported third quarter results showing a 2.1% decline in revenue to $1.35 billion and a 42.7% drop in net income to $203 million. Adjusted EBITDA grew by 0.3% to $644 million. The Company highlighted continued customer growth in its wireless segment, adding 35,000 Wireless customers and achieving a 4.4% revenue increase in wireless services. Shaw announced a $2.85 billion divestiture of Freedom Mobile to Quebecor as part of the regulatory process for its merger with Rogers, which remains under review.

Shaw Business has launched its new Fibre+ Gig 2.0 internet tier, offering businesses in Western Canada up to 2 Gbps speeds. This service is designed for data-heavy applications, enabling seamless operations across multiple connected devices.

The Gig 2.0 service is available in over 97% of Western markets and features unlimited data for $195/month on a 3-year term. Shaw is recognized as the fastest fixed broadband provider in the region according to Ookla® Speedtest Intelligence®, further solidifying its market leadership.

The divestiture of Freedom Mobile to Quebecor, valued at C$2.85 billion, aims to establish a strong fourth wireless carrier in Canada. This agreement, vital for regulatory approvals, includes Freedom's customers, infrastructure, and a commitment from Rogers and Shaw for ongoing support. Quebecor's operational prowess and financial capacity are expected to enhance Freedom's market presence and promote competition. The transaction is crucial for the ongoing Rogers-Shaw merger, ensuring sustained wireless competition in Canada.

The proposed merger between Rogers and Shaw Communications has encountered regulatory scrutiny, leading to an agreement that halts closing until a settlement with the Commissioner of Competition is reached or a Tribunal ruling is made. Both companies aim to divest Shaw's wireless business as part of the merger process. Key benefits of the merger include a $2.5 billion investment for 5G networks in Western Canada, a $1 billion Connectivity Fund for rural areas, and the creation of up to 3,000 jobs. The merger has received prior shareholder and court approvals but awaits additional regulatory clearances.

Shaw Communications Inc. has declared monthly dividends of $0.09875 for Class B Non-Voting Participating Shares and $0.098542 for Class A Participating Shares. These dividends are payable on June 28, 2022 and July 28, 2022 to shareholders on record by June 15, 2022 and July 15, 2022. The dividends are designated as eligible for tax purposes under Canadian law. However, no further dividends will be paid if the Effective Date of the Arrangement with Rogers Communications occurs prior to these record dates.

Rogers and Shaw are set to oppose the Commissioner of Competition's application to block their proposed merger. To address regulatory concerns about competition, they plan to fully divest Shaw's wireless arm, Freedom Mobile. The merger is expected to enhance digital infrastructure investments, including $2.5 billion for 5G networks and a $1 billion fund for rural connectivity. The merger has received shareholder and CRTC approval and extends its completion date to July 31, 2022, while awaiting further regulatory approvals.

Shaw Communications reported Q2 fiscal 2022 results with revenues of $1.36 billion, a 2% decline from the previous year. Adjusted EBITDA was $632 million, down 0.8%, and net income decreased 9.7% to $196 million. The company added 16,900 new Wireless customers despite a 3.9% drop in Wireless revenue to $323 million. The combination with Rogers received key regulatory approval, with the deal valued at approximately $26 billion, including $6 billion in debt. The transaction targets a first-half 2022 close, pending final approvals. Free cash flow decreased by 12.5% to $217 million.

Shaw Communications Inc. will release its consolidated results for the second quarter ending February 28, 2022, on April 13, 2022, before North American markets open. Management will not hold a conference call after the results release. For inquiries, investors can contact investor relations via email. Shaw, a leading Canadian connectivity provider, offers various services through its Wireline and Wireless divisions, including broadband Internet, WiFi, digital phone, and video services. Shaw is traded on the Toronto and New York stock exchanges (Ticker: SJR).

On March 24, 2022, Shaw Communications announced that the Canadian Radio-television and Telecommunications Commission (CRTC) has approved the transfer of Shaw’s licensed broadcasting undertakings to Rogers Communications. This approval is a significant step towards completing the merger, with full completion expected in the first half of 2022. CEO Brad Shaw emphasized their commitment to working with regulators to maximize shareholder value and highlighted the anticipated benefits of the merger, including enhanced connectivity and competition in Western Canada.