Shaw Communications, Inc. (NYSE:SJR) Q4 2015 Earnings Conference Call - Final Transcript
Jan 14, 2016 • 03:30 pm ET
Thank you for standing by. Welcome to Shaw Communications' Fourth Quarter and Fiscal 2015 Year End Conference Call. Todays call will be hosted by Mr. Brad Shaw, CEO of Shaw Communications. At this time, all participants are in a listen-only mode and the conference is being recorded. Following the presentation, there will be a question-and-answer session. [Operator Instructions]
Before we begin, management would like to remind listeners that comments made during today's call will include forward-looking information, and there are risks that actual results could differ materially. Please refer to the company's publicly filed documents for more details on assumptions and risks.
Mr. Shaw, I will now turn the call over to you.
Thank you, operator, and thanks to everyone for joining us today to discuss our fourth quarter and fiscal 2015 year-end results. With me today are members of our senior management team, including Jay Mehr, Executive Vice President and Chief Operating Officer; Vito Culmone, Executive Vice President and Chief Financial Officer; Barb Williams, Executive Vice President and President, Shaw Media; and Nancy Phillips, Co-Founder and CEO of ViaWest.
Our annual and quarterly operating results represent the continuation of our strategic and financial focus, and for the year, we delivered consolidated EBITDA growth of over 5% and free cash flow of CAD653 million, meeting our 2015 guidance targets. Vito will discuss our financial results in more details in a moment after I touch on some of the key developments during the quarter.
In Q4, our consolidated business delivered over 6% revenue and 9% EBITDA growth. However, subscriber losses of 74,000 accelerated due to aggressive competitive activity, the impact of the economic downturn in Alberta and the continued phone losses as we maintained our focus on high value customers and long-term profitable bundling strategies. Despite the increase in subscriber losses, our Consumer Division delivered 3% EBITDA growth in Q4 and maintained a healthy 46% margin.
Business Network Services launched a number of new products during the quarter, including SmartVoice. This new phone product provides a unified communication solution to small business to enhance productivity by allowing employees to collaborate seamlessly across their traditional business, desktop phone, mobile devices, and computers in or outside of the office. We also launched Managed Hotel Wi-Fi, which provides a cloud-based Wi-Fi product that is fully managed solution for the hospitality market.
Early results from these launches are positive and represent significant progress relating to the strategic initiatives and direction we are taking following the realignment of our Business Network division earlier this year. Business Infrastructure Services continues to meet our expectations and the fundamentals of the datacenter business remain strong. We are experiencing increasing customer demand which is a positive indicator of revenue performance as we move into F16. Over the long term, we continue to believe that revenue and EBITDA growth will be in the low-to-mid double digits.
During the quarter, we announced opening up two new facilities, including the Hillsboro, Oregon flagship facility with over 50,000 square feet of space and the Calgary