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UPDATE 1-Shaw Communications profit more than halves on JV wind down charge

Published 2017-01-12, 08:47 a/m
© Reuters.  UPDATE 1-Shaw Communications profit more than halves on JV wind down charge
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Jan 12 (Reuters) - Canada's Shaw Communications Inc SJRb.TO reported a 59.2 percent fall in quarterly profit on Thursday, mainly due to a charge related to the winding down of its investment in video streaming service Shomi.

Rogers Communications Inc RCIb.TO and Shaw wound down operations at their joint venture Shomi last November, which was a competitor to Netflix Inc NFLX.O .

Shaw took a C$107 million ($82 million) charge on the investment in its first quarter. The company's first-quarter results were also hurt by the sale of its media division to Corus Entertainment Inc CJRb.TO , which was completed last April.

Shaw, which has transformed itself into a pure-play communications company, added nearly 17,000 new retail internet customers and lost 2,867 business internet accounts in the first quarter.

The company bought Canada's fourth-largest wireless company Wind Mobile last February, adding wireless to its product mix and began offering aggressively priced high-speed internet in mid-July.

Shaw's net income fell to C$89 million, or 18 Canadian cents per share, in the first quarter ended Nov. 30, from C$218 million, or 43 Canadian cents per share, a year earlier. items, the company's adjusted profit of 32 Canadian cents per share matched the average analysts' estimate, according to Thomson Reuters I/B/E/S.

The Calgary-based company's revenue rose 15 percent to C$1.31 billion.

Up to Wednesday's close of C$28.19 on the Toronto Stock Exchange, Shaw's shares had gained nearly 20 percent in the last 12 months.

($1 = C$1.31)

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