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Shaw Communications Reports Growth in Revenue and Operating Income

7:30 am on July 14, 2007 | Category: Business, Corporate, Telecom Services, Television

Canada’s second largest cable television provider, Shaw Communications Inc., reported third quarter net profits of $91.7 million, or $0.42/share yesterday, down from $126.4 million in the same three-month period last year.

The company also announced that it is upping its dividend, however, due to a solid increase in both revenue and operating income. Last year’s overall net profits were artificially boosted by tax recoveries and the sale of a portfolio investment, which served to almost double the $63.9 million in operating income on $702 million in revenue.

Revenue growth of 12% was driven by a combination of subscriber growth and cable rate increases, according to the company.

“This quarter we continued to see solid operational and financial results due to the efforts of our strong management team and over 9,000 employees. Customer gains were posted across all products and we delivered solid growth in revenue and service operating income before amortization,” commented Chief Executive Officer, Jim Shaw.

Shaw’s dividend is being increased by 18%, or $0.20 per share, to $1.32 for class B shares and $1.315 for class A shares.

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