UPDATE: Shaw Communications Posts Lower Q1 Profit

Shaw Communications Inc

reported a drop in profit for the first quarter. The Calgary, Canada-based company posted quarterly net income of C$227 million ($189.72 million), or 46 Canadian cents a share, compared to C$245 million, or 51 Canadian cents a share, in the year-ago period. Its revenue gained 2% to C$1.39 billion. However, analysts were expecting earnings of C$0.46 per share on revenue of C$1.44 billion. Revenue in the Consumer division slipped to $927 million from $945 million, while Business Network Services revenue gained to $127 million from $119 million. Business Infrastructure Services revenue came in at $55 million, while revenue in the Media division slipped to $307 million from $325 million. Total operating income before amortization slipped to $606 million from $608 million. Free cash flow climbed to $193 million from $157 million. During the first quarter, Shaw Communications lost 18,372 satellite video subscribers and 11,923 cable video subscribers in its consumer business. However, consumer internet customers rose by 11,379 to 1,773,260 in the quarter. Chief Executive Officer, Brad Shaw said, "We are off to a solid start in fiscal 2015 with positive operating momentum across our businesses. The positive change in Consumer Video - Cable and Internet net growth year-over-year reflects the shift in the competitive dynamic in Western Canada. We continue to make decisions and launch initiatives driven by the imperative to bring quality, reliability, innovation and value to the customer and viewer experience.” Shaw Communications shares closed at $26.08 yesterday.