Shaw Communications reports drop in 2Q income on higher costs

12 Apr 2010

Canadian cable broadband and telephony provider Shaw Communications Inc reported an 11% fall in net income for its fiscal second-quarter ended 28 February 2010. Shaw said net income declined to CAD138.7 million (USD131.8 million), compared to CAD156.6 million in the same period of 2009, while revenue rose 11% year-on-year to CAD929.1 million, from CAD839.1 million previously. The results exceeded a Thomson Reuters’ analyst poll of revenue of CAD926.2 million.

The strong performance was driven by a rise in subscribers although it noted that operating costs also rose due to increased sales and marketing costs. Shaw said its cable revenue climbed 13% year-on-year to CAD732.3 million and satellite revenue rose 4% to CAD196.9 million, as digital customers increased 7% to 1.5 million. Shaw’s broadband user base also grew 2% to 1.8 million and digital voice telephony connections were up 6% y-o-y at 978,000.

Canada, Shaw Communications