Shaw’s third-quarter financial report shows its revenue is remains in decline, continuing the downwards direction it shared in its Q2 report.
The company decreased its Q3 revenue by 2.1 percent year-over-year.
Financial contributions from Shaw’s wireless division offset this figure, which increased its financial contribution by $13 million (or 4.4 percent) compared to Q3 2021. The company reported $20 million in revenue from an increased subscriber base but this figure was offset by $7 million in decreased equipment revenue.
Shaw added 35,012 new subscribers and 19,392 were postpaid, a decrease year-over-year. It said this was because of “strong wireless competition,” limited access to devices, bundle adjustment, and “moderating” demand for its plans.
The company reported a similar revenue decrease for its wireline division, which dropped by almost four percent. The company lost more than 24,000 paying users.
Shaw doesn’t plan to keep Freedom Mobile under its control for much longer. Along with Rogers, the company decided to sell Freedom Mobile to Québecor in order to appease competition concerns.
“We feel strongly that the sale of Freedom to Québecor will be seen as a positive outcome by the regulators as Quebecor expands their successful wireless operations through this acquisition,” Brad Shaw, Shaw’s CEO, said.
The three companies are working to finalize documentation by July 15th, Shaw notes. Regulatory bodies need to approve the sale, but that won’t happen until they finalize Rogers’ takeover of Shaw.
The two companies are taking part in a mediation process with the Commissioner of Competition this week. The commissioner filed to block the merger in May, stating it isn’t a good deal for Canadians. Shaw and Rogers filed their own responses stating the commissioner’s reasoning was flawed. If mediation fails, the commissioner’s application will go before the tribunal towards the end of the year.
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