Shaw's (TSX:SJR.B) Q1 profit up 20.2%: Buy alert for the telecom stock?

Highlights

• Shaw Communications Inc (TSX:SJR.B), one of the leading telecom companies in Canada, announced its latest financial results on Wednesday, January 12.
• The Calgary, Canada-based company said that its profit in the quarter ending November 30, 2021, surged by 20.2 per cent year-over-year (YoY).
• Shaw Communications saw its stocks rise by nearly 67 per cent in the past one year.

Shaw Communications Inc (TSX:SJR.B), one of the leading telecom companies in Canada, announced its latest financial results on Wednesday, January 12.

The Calgary, Canada-based company said that its profit in the quarter ending November 30, 2021, surged by 20.2 per cent year-over-year (YoY) to C$ 196 million, up from that of C$ 163 million a year ago.

Let us take a closer look at Shaw Communications’ quarterly report for the first quarter of fiscal year 2022.

Shaw Communications Inc (TSX:SJR.B) Q1 FY2022 financial results

The Canadian cable company said on Wednesday that its adjusted EBITDA for Q1 FY2022 shot up by 4.3 per cent YoY to C$ 633 million.

Shaw Communications’ consolidated revenue, on the other hand, expanded by 1.2 per cent YoY to C$ 1.39 billion in the latest quarter, up from that of C$ 1.37 billion a year ago.

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The telecom firm saw its free cash flow grow by 4.9 per cent YoY to C$ 236 million.

Shaw Communications also updated its dividends to a payout of C$ 0.09875 for every Class B share and that of C$ 0.098542 for each Class A share.  

The dividends, which are paid on a monthly basis, are set to be distributed to its shareholders this year on March 30, April 28 and May 30, the company said.

On the operational front, Shaw Communications said that it added some 55,600 new wireless customers in Q1 FY2022, along with about 36,100 new postpaid net additions.

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Shaw Communications stock performance

Shaw Communications saw its stocks rise by nearly 67 per cent in the past one year.

In 2022, however, the telecom stock has been trading flat.

SJR.B scrips hit a 52-week high stock price of C$ 38.06 apiece on December  29 last year. From its one-year low of C$ 21.85, the stock has climbed by over 74 per cent.

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Bottomline

In March last year, Shaw Communications announced that it is set to merge its businesses with peer Rogers Communications Inc (TSX:RCI.B), as per which the latter will purchase all of Shaw’s shares for a value of about C$ 26 billion.

With this deal expected to be complete in the first half of this year, Shaw’s stocks could rise further in value in the near future.