Shaw Communications Inc. is embracing the Internet, as the cable business, where it found much of its success, begins to suffer from the erosive effects of competition and new technology.
The company reported first-quarter profit of $245-million or 51 cents a share on revenue of $1.36-billion for the three months ended Nov. 30. Profit climbed slightly from $235-million or 50 cents a year earlier. Both revenue and profit were largely in line with what many analysts had predicted.
But perhaps the most distressing numbers for the Calgary-based company came from its TV offerings: it lost almost 30,000 cable subscribers and more than 9,300 satellite customers in the quarter. The subscriber losses illustrate a challenging reality for the Western Canadian cable giant – not only are some customers deciding they can live without traditional TV services, the remaining customers are being courted aggressively by competitors, most significantly Telus Corp.
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The company reported first-quarter profit of $245-million or 51 cents a share on revenue of $1.36-billion for the three months ended Nov. 30. Profit climbed slightly from $235-million or 50 cents a year earlier. Both revenue and profit were largely in line with what many analysts had predicted.
But perhaps the most distressing numbers for the Calgary-based company came from its TV offerings: it lost almost 30,000 cable subscribers and more than 9,300 satellite customers in the quarter. The subscriber losses illustrate a challenging reality for the Western Canadian cable giant – not only are some customers deciding they can live without traditional TV services, the remaining customers are being courted aggressively by competitors, most significantly Telus Corp.
More from the Globe and Mail
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