Shaw Communications, Inc. (NYSE:SJR) Q1 2020 Earnings Conference Call - Final Transcript
Jan 13, 2020 • 10:00 am ET
appeal to the family segment while our newly launched Freedom Home Internet targets the younger, city-living and heavy data users. With our dual brand approach, we have established distinct value propositions to meet the needs of different customer segments and we will continue to build upon this strategy in fiscal 2020.
Overall, Wireline results in the first quarter were solid and in line with our commitments, which reinforces our free cash flow growth profile in fiscal 2020 and beyond.
I'll now turn over to Trevor to discuss the Q1 financial results in more detail.
Thank you, Brad, and good morning, everyone. With some changes to the way we present our reported results, including the adoption and implementation of IFRS 16, let me walk through the numbers in a bit more detail.
Consolidated revenue increased 2.1% to CAD1.38 billion and EBITDA increased over 8% to CAD588 million. This includes a CAD38 million impact from IFRS 16. Excluding this new accounting standard, EBITDA increased 1.1% over the previous year, and as Brad mentioned, this was in line with our expectations.
Wireline revenue in the first quarter declined by approximately 1.5%. The decline was due primarily to continued losses in the mature consumer wireline products, partially offset by growth in Consumer Internet and Business. Note that for Q1 business results, the comparable year includes revenue from our Calgary1 data center, which was sold effective August 1, 2019. And if we adjust for the disposition, business revenue was up approximately 5% in the quarter versus a year ago.
As we previously disclosed in our F '19 Annual Report, we have also made some minor reporting changes within our Wireline segment. Effective this quarter, revenue from our Broadcast Services and Wholesale TPIA that was previously reported under the Business segment is now included in Consumer revenue. However, the prior period has also been adjusted, so the figures are comparable, and we note that this change is only between segments, therefore there's no change to overall Wireline revenue or EBITDA in F '19. The combined impact on revenue is approximately CAD36 million in F '19 that move to consumer, which was previously reported under business.
Wireline EBITDA increased 3.4% this quarter, which includes CAD21 million related to IFRS 16. Excluding the accounting impact, Wireline EBITDA was in line with the previous year and our margin remained strong at 46.5%. This reflects our continued focus on capturing operating efficiencies. First quarter wireless service revenue increased over 18% year-over-year to almost CAD200 million and EBITDA increased over 60% to CAD77 million, of which CAD21 million was related to IFRS 16. Excluding the accounting impact, Wireless EBITDA was up 23% and our Wireless margin improved over the prior year as we continue to scale the business.
In terms of free cash flow and as we have previously discussed, we have made some adjustments to management's definition to account for lease payments that are no longer classified as operating expenses under IFRS 16, as well as interest on lease liabilities