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Shaw Profit Slips, Despite Increase in Cable Subscriptions

12:20 pm on October 23, 2009 | Category: Business, Corporate, Television

Western Canada’s main cable operator, Shaw Communications reported a decline in fiscal fourth quarter profits today, but says itâ€™s in good financial shape heading into the new year.

The company generated a net income of $124 million ($0.29/share) for the June-August quarter, down from $132.3 million in the same period a year earlier. It added some 29,000 new cable customers, bringing its residential TV subscriber base to 2.29 million.

“Looking forward, we anticipate steady growth in fiscal 2010,” said Chief Executive, Jim Shaw, in a statement. “We plan to continue to invest in our high quality network and drive innovation in our products and services. These initiatives, combined with our focus on the delivery of a superior customer experience, strengthen our competitive position and build long-term value for our shareholders.”

Analysts expect Shaw to pursue a competitive pricing structure in the months to come, due to the ongoing recession, as well as Telus’ newfound foothold in the pay-TV market.

“It’s pretty clear that the company is focusing more on volume than price,” commented National Bank Financial analyst, Greg MacDonald. “In a recession consumers are not really willing to embrace aggressive price increases, so I see Shaw shifting its strategy to focus more on increasing its share.”

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