Shaw Communications Q3 Profit From Cont. Ops More Than Doubles

(RTTNews) - Shaw Communications Inc. (SJR_B.TO, SJR, SJR_A.TO) on Wednesday reported profit from continuing operations for the third quarter that more than doubled from last year, primarily reflecting lower non-operating costs.

On a continuing operations basis, the company's third-quarter net income surged to C$164 million or C$0.33 per share from C$74 million or C$0.14 per share in the same period last year.

However, consolidated net income for the third quarter fell 81 percent to C$133 million from C$704 million in the year-ago period. Earnings per share also declined to C$0.27 from C$1.44 a year ago.

On average, eleven analysts polled by Thomson Reuters expected the company to report profit per share of C$0.33 for the quarter. Analysts' estimates typically exclude special items.

The latest quarter's results include loss from discontinued operations of C$31 million or C$0.06 per share, compared to income from discontinued operations of C$630 million or C$1.30 per share in the year-ago period.

Revenue for the quarter grew 2.8 percent to C$1.31 billion from C$1.28 billion in the prior-year period, primarily due to growth in the wireless division. Analysts had a consensus revenue estimate of C$1.32 billion.

Operating income before restructuring costs and amortization for the quarter edged down 0.5 percent from last year to C$550 million.

The company noted that cable TV subscribers grew for the first time since 2010, with Consumer and Wireless divisions gaining 58,000 subscribers.

Looking ahead, the company said it is updating its fiscal 2017 outlook for operating income before restructuring costs and amortization to range between C$2.135 and C$2.160 billion. Earlier, the company projected operating income before restructuring costs and amortization in a range of C$2.125 billion to C$2.175 billion.

The revised outlook includes the results of the Business Infrastructure Services division, comprised primarily of ViaWest, Inc., through the end of fiscal 2017 and also reflect a modest acceleration of capital spend associated primarily with strategic network enhancements and the evolving wireless platform.