In Shaw’s latest earnings report, it becomes abundantly clear that Wind Mobile’s success has weathered an otherwise dismal quarter.
The third quarter earnings and year-to-date report reveals that its recently acquired subsidiary Wind Mobile has passed 1 million wireless subscribers, having achieved 940 thousand when the deal went through back in March.
Wind Mobile acquired its 1 millionth subscriber in May and currently has 1,003,469 subscribers or “revenue generating units.”
Overall, though Shaw’s profit rose 13 percent to $704 million CAD, the parent company lost 8,760 consumer internet accounts compared to an increase of 5,292 at the same time last year. Furthermore, the company lost 27 thousand retail television accounts.
“We continue to make significant progress in our journey to becoming an enhanced connectivity provider. Our third quarter financial and operating results include a full quarter contribution from WIND Mobile (“WIND”), our new wireless division, and we are pleased to confirm that during the quarter we surpassed over 1 million wireless subscribers,” said COO Brad Shaw in a statement.
Researchers speculate that without the acquisition of Wind Mobile, Shaw’s profit would have landed somewhere around 1.4 percent. Shaw has also replaced all its 3G equipment in western Canada with Nokia equipment, allowing them to increase speeds. Wind Mobile is projected to control an LTE network by the end of the 2017 fiscal year.
“We also completed the first critical step in our wireless network upgrade. All 3G equipment in western Canada has now been replaced with Nokia equipment which enables us to increase speeds and throughput as well as put to use an additional 10MHz of AWS-1 spectrum to significantly enhance performance. Our path towards an LTE network is currently underway and we expect to have this completed by the end of fiscal 2017.” continued Shaw.
Shaw sold its media assets to Corus Entertainment for $2.65 billion a few months back and used the proceeds to purchase Wind Mobile for $1.6 billion. Wind was the fourth largest telecom company in Canada. With this shift, Shaw abandoned its presence in media and moved to focus solely on wireless and telecom services.