October 8, 2019

Shaw Communications Q2 profit up slightly

Shaw Communications Inc. (TSX:SJR.B) is reporting a slight increase in profit in the second quarter as improved operating income was partially offset by higher income taxes.The cable and media company said Friday it earned $182 million or 38 cents per share in the three months ended Feb. 28. That compared with $178 million, also 38 cents per share in the same period last year. Consolidated revenue totalled $1.25 billion, up 1.6 per cent from $1.23 billion.The company also increased its guidance for free cash flow for the year.In October, Shaw had said it expected free cash flow in its 2013 financial year to be about the same as 2012 when it recorded $482 million for the year.“With the first half of the year behind us and modest positive variances across service operating income before amortization, capital investment and interest and cash taxes, we now expect free cash flow to approximate $550 million,” CEO Brad Shaw said.Earlier this month, Shaw signed a deal to buy Enmax Envision Inc. from Enmax Corp. for $225 million.Envision runs one of Calgary’s largest fibre-optic networks and specializes in providing large amounts of bandwidth to businesses and that require a connection or connect multiple locations over private networks.Shaw said it will use Envision to expand its Shaw Business service with products and services complementary to those offered by Envision.Shaw provides cable television, high-speed Internet and home phone services in Western Canada.The company also owns Global Television and 18 specialty networks including HGTV Canada, Food Network Canada, History and Showcase.

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