Shaw Communications Inc. (SJR) exceeds expectations in its first quarter of fiscal 2010. Quarterly revenue of little over $874.2 million was up 22% year-over-year and also above the Zacks Consensus Estimate of $870 million. The year-over-year improvement was primarily due to customer growth and rate increases.

Quarterly net income was $110.2 million, or 25 cents per share, compared to a net income of $106.9 million or 25 cents per share in the prior-year quarter. However, excluding non-operating charges, the first quarter adjusted EPS of 40 cents was significantly above the Zacks Consensus Estimate of 34 cents.

Quarterly operating income before amortization was $304.8 million, up 28.9% year-over-year. However, this includes a one-time Part II fee recovery of $72.7 million. In the reported quarter, Shaw Communications generated $322 million of cash from operations compared to $267 million in the year-ago quarter. Free cash flow (cash flow from operations less capital expenditures) in the same quarter was $168.6 million, compared to $147.1 million in the year-ago quarter.

At the end of the first quarter of fiscal 2010, the company had $786.6 million of cash & marketable securities and $3,839.6 million of outstanding debt on its balance sheet, compared to $593.7 million of cash & marketable securities and $2,885.8 million of outstanding debt at the end of fiscal 2009.

Subscribers Statistics

At the end of the first quarter of fiscal 2010, its Basic Cable customer base was 2,329,612, a net year-over-year reduction of 1,416. The Digital customer base was 1,409,983, a net year-over-year addition of 88,259. Its Internet customer base was 1,744,577, a net year-over-year addition of 36,242. Digital phone lines were 923,365, a net year-over-year addition of 61,461. The DTH customer base was 902,038, a net year-over-year addition of 1,097.

Cable Segment

Quarterly revenue of $683.7 million was up 10% year over year. Quarterly operating income before amortization was $367.8 million, up 25.5% year over year.

Satellite Segment

Quarterly revenue of $190.5 million was up 3% year over year. Quarterly operating income before amortization was $90.6 million, up 45.2% year over year.

Future Outlook

Management predicted that full fiscal 2010 operating income before amortization may increase by more than 14% year-over-year. Free cash flow will remains same to that of fiscal 2009. Management also declared that the company will try to enter into the Canadian wireless services market in 2010.

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