Shaw cable revenues up in Q2

The communications and mediaco released its second-quarter report today, showing a rise in earnings and revenue.

Despite stepped-up competition from rival Telus Corp., Shaw has increased profits on higher cable TV revenues and growth in its digital phone and internet access division.

The western Canadian cable giant, which released its second quarter results today, saw earnings rise 20.6% to $167.3 million, against a profit of $139 million in 2010.

Revenue jumped 28.8% to $1.2 billion, against a year-earlier $929.1 million.

On the cable side, second quarter revenue rose 4.9% to $769.4 million, driven by rate increases and an increased digital phone and internet-access customer base.

During the three months to Feb. 28, Shaw saw its overall basic cable customer base drop by 13,662 subscribers to 2.31 million consumers in all.

Shaw also faced higher promotional costs during its latest quarter to battle competition from Telus and its new Optik TV service.

‘Our industry is transforming and competition in our core business continues. We have taken decisive and immediate steps to streamline our organizational structure. In this changing landscape, managing costs and operating efficiently are essential,’ said newly installed Shaw Communications CEO Brad Shaw, underlining recent job cuts to trim operating costs.

Shaw is also developing its broadcast division after acquiring the former Canwest Global Communications Corp.’s TV assets for $2 billion and rebranding them as Shaw Media.

From Playback Daily