Shaw Comm Slowing Wireless Phone Rollout
Facing stiff competition on the cable TV and Internet, Shaw Communications pulls back on mobile phone build-out as second quarter earnings and revenue grow.
TORONTO -- Shaw Communications has pulled the throttle back on its wireless phone roll-out as it battles phone giant Telus Corp.
in the western Canadian market. Shaw Communications CEO Brad Shaw, releasing cable giant’s second quarter results Tuesday, said the company will slow its wireless phone build-out to focus on core cable TV, Internet access and satellite TV businesses. "We continue to focus heavily on the strength of our core business and intend to make important investments in new technology platforms, digital reclamation and broadband capacity in order to ensure we maintain our technological leadership,” he said in a statement.
In western Canada, Shaw faces stepped-up competition from Telus and its Optik TV and wireless phone services. On Wednesday, Shaw posted second quarter earnings to Feb. 28 up 21 percent to $167.3 million, compared to a year-earlier profit of $139 million. Overall revenue was up 28.8 percent to $1.2 billion, as Shaw Communications added digital phone and Internet access during the latest customers, and secured rate increases.
Shaw Communications added it wil record one-time restructuring costs of around $30 million to eliminate around 550 jobs in western Canada, to secure annual savings of around $50 million.