Shaw Communications, Inc. (NYSE:SJR) Q2 2019 Earnings Conference Call Transcript

Apr 09, 2019 • 10:00 am ET


Shaw Communications, Inc. (NYSE:SJR) Q2 2019 Earnings Conference Call Transcript


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Thank you for standing by. Welcome to Shaw Communications' Second Quarter 2019 Conference Call and Webcast. Today's call will be hosted by Mr. Brad Shaw, CEO of Shaw Communications. At this time, all participants are in 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.

Bradley Shaw

Thank you, operator, and good morning, everyone. With me today are members of our senior management team, including Jay, Trevor and Paul. Earlier this morning, we released our second quarter results for fiscal 2019, which reflects strong financial performance both in the quarter and year-to-date. We continue to make progress on our strategic priorities and our journey to a modern Shaw, and we are excited about a number of recently announced initiatives.

We delivered growth in our wireless business with postpaid subscriber additions of approximately 65,000 in the quarter. While the subscriber results reflected less active period compared to a year ago, we have grown postpaid subscribers by almost 20% on a year-to-date basis compared to fiscal '18, which is everyone will recall included a record Q2 net additions last year, partly due to our initial launch of the iPhone.

Wireless ARPU increased 7.5% as we continue to attract customers to big gig data plans partially offset this quarter with additional promotions to compensate for lower market activity as well as higher retention spending by our competitors.

As we enhance our customer experience through the road of the 700-megahertz spectrum, more and more customers are staying with Freedom as postpaid churn improved 30 basis points to 1.36% in the quarter. As previously communicated, we are expanding our wireless network in 2019 with the launch of Victoria and Red Deer on February 8th followed by six communities in Eastern Ontario in early March. We are encouraged by the early results and are excited to launch additional markets throughout the remainder of the year.

Over the past few days, we have introduced some new advertising that continues to call wireless customer pain points in a direct manner. We are proud of our wireless network, the improvements we have made in our innovative and data-centric offers. Canadians need to know that owning a wireless device with an abundant data plan doesn't need to be unaffordable or complicated. We have also introduced new prepaid wireless plans, and I am pleased to announce that we have finalized an agreement with our third national retail distributor. Mobilinq, who will carry Freedom prepaid offers in all 50 of their locations that will start to roll out later this month.

This segment of the market has become increasingly competitive over the last several months. While our priority remains to