Shaw Communications Inc (NYSE:SJR) stock rose 0.43% (As on Jan 13, 11:05:04 AM UTC-4, Source: Google Finance) after the company reported net income of $196 million, or $0.39 per diluted share the first quarter of FY 22, compared with net income of $163 million (a 20% YoY increase) and $0.31 per diluted share, for the year ago quarter. This is due to work toward the closure of a $26-billion deal that will see the Calgary-based cable and wireless company sold to Rogers Communications Inc. in the first half of this year. The company had reported the adjusted revenue of $1.38 billion in the first quarter of FY 22, missing the analysts’ estimates for revenue of $1.39 billion. Shaw has added approximately 55,600 new Wireless customers in Q1. Postpaid net additions of 36,100 were driven by the continued momentum of Shaw Mobile. Wireless service revenue grew 11.2% due to subscriber growth, partially offset by lower ARPU as Shaw scales its lower revenue Shaw Mobile customer base. First quarter Wireless ARPU fell 3.4% from the prior year period to $36.95; however, an increase in customers signing up for bundled offerings and Internet migration to faster speed tiers continues to support Internet revenue growth.

The company’s wireline subscribers declined by approximately 78,100 in the quarter compared to a loss of approximately 100,900 in the first quarter of fiscal 2021. The current quarter was led by a modest gain in consumer internet customers, offset with declines in video, satellite and phone. The company said revenue from its business division increased 11 per cent year-over-year to $161 million, despite the fact that the majority of Shaw Business revenue comes from small and medium-sized businesses — a sector that has been significantly challenged by the COVID-19 pandemic.

Moreover, Capital expenditures in the first quarter of $229 million compared to $234 million in the prior year. Wireline capital spending increased by approximately $29 million primarily due to higher investments in combined upgrades, enhancements and replacement categories as well as an increase in new housing development.

Shaw added that it remains committed to supporting the closure of the transaction with Rogers (RCI-B.TO). Subject to receiving all required approvals and satisfaction of all closing conditions, the transaction is expected to close in the first half of 2022.

Additionally, the company declared monthly dividends of $0.09875 per Class B non-voting participating share and $0.098542 per Class A participating share, payable March 30, April 28, and May 30.