Shaw Communications profit misses estimates as costs rise
(Reuters) - Shaw Communications Inc (SJRb.TO: Quote) SJR.N reported a smaller-than-expected quarterly profit, largely due to costs associated with the launch of its low-priced internet service.
The company, which has sharpened its focus on selling access to broadband data, rolled out its low-cost WideOpen Internet 150 service in July to over 90 percent of its customers.
Shaw has transformed itself into a pure-play communications company, purchasing the country's fourth-largest wireless company Wind Mobile in late February and selling its media assets to Corus Entertainment Inc (CJRb.TO: Quote).
The company said on Wednesday it expected slightly higher operating income in 2017.
The Calgary-based company forecast operating income before restructuring costs and amortization of C$2.13 billion-C$2.18 billion in 2017, higher than the C$2.11 billion this year.
Revenue rose 15.5 percent to C$1.31 billion ($980.3 million)in the fourth quarter ended Aug. 31, topping analysts' average estimate of C$1.30 billion.
The company's net income fell 44 percent to C$154 million, or 31 Canadian cents per share.
Shaw recorded a C$158 million gain on the sale of wireless spectrum in the year-ago quarter.
The company earned 29 Canadian cents from continuing operations in the latest quarter, compared with the average analyst estimate of 32 Canadian cents, according to Thomson Reuters I/B/E/S. Continued...