Shaw Q2 Net Profit Surges; Sees Flat To Low Single Digit Growth In FY16 Income

(RTTNews) - Shaw Communications Inc. (SJR_B.TO, SJR) reported Friday that its third-quarter net income surged to C$704 million or C$1.44 per share from C$209 million or C$0.42 per share a year ago.

The results reflected a C$646 million income from discontinued operations, significantly higher than C$73 million last year.

On a continuing operations basis, net income declined 57.3 percent to C$58 million from C$136 million last year.

Revenue from continuing operations grew 13 percent to C$1.28 billion from C$1.14 billion last year.

Operating income before restructuring costs and amortization for the quarter of C$555 million improved 5.3 percent.

The company said its path towards an LTE network is currently underway and that it expects to have this completed by the end of fiscal 2017.

Looking ahead, Shaw expects its fiscal 2016 operating income before restructuring and amortization to range between flat to low single digit growth as compared to fiscal 2015.

Consolidated capital investment in fiscal 2016 is expected to be C$1.2 billion, including WIND. Shaw is introducing preliminary fiscal 2017 consolidated capital to be approximately C$1.3 billion.

Chief Executive Officer Brad Shaw said, "By the end of fiscal 2017 we will have the X1 set-top box available to all customers, completion of the wireless LTE upgrade in our existing markets and DOCSIS 3.1 implemented throughout the wireline network, enabling Internet speeds of 1GB and more. As we enter the next fiscal year, our entire employee base is behind this strategy and has never been more motivated to execute on our future with operational efficiency top of mind."