Canada's Shaw Communications Posts Higher Profits, Despite Soft Ad Market
TORONTO - A soft Canadian TV ad market and competition from arch-rival Telus Corp. continues to take its toll on Canadian cable and broadcast giant Shaw Communications.
During the third quarter to May 31, the Calgary-based cable giant posted earnings up 22 percent to $248 million, on flat revenue of $1.27 billion.
The profit jump came as Shaw brought in rate increases for its cable and satellite TV divisions.
At the same time, third quarter cable revenue was up 1.1 percent to $794 million, while satellite TV revenue was up 0.5 percent to $211 million.
That offset revenue from the Shaw Media broadcast division, which includes the U.S.-series rich Global Television network and a stable of cable channels, falling 5.4 percent to $295 million on lower free, over-the-air TV ad sales.
Shaw Communications also posted fewer basic cable TV subscribers during the latest quarter after it reduced heavy promotional deals to keep customers from jumping to rival Internet-based TV packages offered by Telus Corp.