Shaw Communications Inc.

Adjusted EBITDA grew 3.2% year over year on a consolidated basis. Wire line revenue declined approximately 1%, while wire line adjusted EBITDA increased almost 3% and the operating margin exceeded 50% for the quarter. Wireless service revenue grew approximately 10% to $215 million, and wireless adjusted EBITDA increased approximately 6% year over year. The company said free cash flow growth was 23% this quarter and that dividend payout ratio is roughly 75%. On customer metrics, Shaw said it added over 100,000 new wireless customers, internet net losses were 15,000, and internet ARPU was just over $73. For the next period, management did not provide explicit numeric quarterly or full-year revenue/EPS guidance on the call; instead, it said it expects continued NCIB activity and further rollout of 5G later in the calendar quarter.

Brad Shaw framed the quarter as validation of the company’s pivot toward wireless scaling and profitable wire line execution. He emphasized that Shaw Mobile bundling with Fibre+ internet is resonating, that customers are embracing higher-speed tiers, and that the company is seeing stronger customer profitability even though internet net adds were negative. His tone was confident and patient: he repeatedly said the company is on the right trajectory, but that it will take time for the strategy to fully show up in subscriber growth.

Trevor English highlighted consolidated adjusted EBITDA growth of 3.2% and said the wire line business delivered almost 3% EBITDA growth despite about a 1% revenue decline. He pointed to wireless service revenue of $215 million, up about 10%, and wireless EBITDA up about 6%, while noting added investment in retail, digital fulfillment and other growth-related costs. He also explained that working capital outflow was mainly timing-related, including interest payments, cash tax installments, and about $75 million related to the NCIB, and said free cash flow growth was 23% this quarter with a roughly 75% dividend payout ratio.

Analysts pressed on Shaw Mobile customer mix, internet ARPU disclosure, working capital outflows, digital distribution, 5G, and whether lower internet growth could hurt future acquisition and retention economics. Management said Shaw Mobile is shifting away from the zero-dollar plan toward the $25 and $45 unlimited plans, that more than half of Shaw Mobile customers are coming from other carriers, and that internet ARPU is just over $73. On working capital, Trevor said the nearly $190 million outflow was mainly timing plus about $75 million tied to the NCIB. On 5G and competition, Paul said the company plans to launch 5G later in the quarter, sees consumer benefits as manageable despite spectrum disadvantages, and expects monetization discipline rather than heavy discounting.