Canadian media and communications company Shaw Communications Inc. (SJR: Quote,SJR_B.TO: Quote) on Thursday reported a 22 percent increase in profit for the third quarter on higher revenues at its cable and satellite divisions. In addition, the prior-year results included higher one-time costs.
Cable division revenue increased 1 percent to C$794 million, reflecting rate increases and customer growth in internet and digital phone. These were partially offset by lower basic cable subscribers.
Satellite division revenues edged up 0.5 percent to C$211 million, primarily due to rate increases. However, Media division revenues declined 5 percent to C$295 million mainly due to lower conventional advertising revenues.
During the quarter, digital phone lines increased 29,142 to 1.34 million and Internet customers declined 429 to 1.91 million. Basic cable subscribers decreased 21,515 to 2.24 million, while digital customers increased 246 to 1.93 million.
Shaw Communications' net income for the third quarter rose to C$238 million or C$0.53 per share from C$195 million or C$0.45 per share in the prior-year period.
On average, fourteen analysts polled by Thomson Reuters expected the company to earn C$0.44 per share for the quarter. Analysts estimates typically exclude special items.
Consolidated revenue declined 0.5 percent to C$1.278 billion from C$1.285 billion in the same period last year. Analysts had a consensus revenue estimate of C$1.31 billion.
Looking ahead to fiscal 2012, Shaw Communications said it is on track to achieve its free cash flow guidance of about C$450 million.
SJR is currently trading at $18.66, down $0.25 or 1.32 percent, on a volume of 8,793 shares.
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by RTT Staff Writer
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