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Shaw Communications posts lower earnings in the third quarter

Last updated: 17:47 26 Jun 2015 EDT, First published: 15:47 26 Jun 2015 EDT

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Shaw said it has decided to cancel the IP platform to deliver television programming, preferring to adopt a cloud-based alternative from US cable giant Comcast

Shares of Shaw Communications (TSE:SJR.B) were steady today even as the company posted 8.3 percent lower net earnings on Thursday evening compared to the same period last year.

Earnings for the Calgary based telecom fell to C$209 million, or 42 cents per share, for its fiscal third quarter, which ended May 31, compared to 228 million, or 47 cents per share, in the same period of 2014.

Revenues, however, increased 5.7% to reach C$1.41 billion, compared to revenues of C$1.34 billion in the third quarter of last year. The company attributed the robust revenue growth to its s acquisition of ViaWest last September, which contributed C$63 million from business infrastructure services during the quarter.

The results included an impairment charge of 55 million, 41 million after tax, related to an Internet Protocol TV development project that started in 2013 only to be terminated last year.

Shaw said it has decided to cancel the IP platform to deliver television programming, preferring to adopt a cloud-based alternative from US cable giant Comcast, starting technical trials of its cloud-based X1 platform.

Shaw wants to be the first in Canada to capitalize on Comcast’s cloud technology.

“The Internet is changing the way we live, communicate, work and share. In this new world, scale is important and Shaw is committed to building global partnerships that deliver best in class, customer experiences,” said Shaw’s CEO, Brad Shaw said in a statement.

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