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Shaw Communications Inc profit drops 24 as reorganization effort continues

CALGARY — Shaw Communications Inc. says ongoing efforts to improve its customer care operations cut into its profit in the second quarter but provided positive momentum for the longer term.The Calgary-based telecom and media company says it recorded $38 million of expenses related to severance and employee-related costs for about 1,600 affected employees.Shaw’s profit for the three months ended Feb. 28 was $168 million, down 24 per cent from the same period last year when it had a gain from the sale of specialty TV channels.This year’s second quarter net income amounted to 34 cents per share, which was five cents below the Thomson Reuters analyst estimate of 39 cents per share.Shaw said its second quarter operating income before restructuring costs and amortization was $557 million, up 5.5 per cent from $528 million a year earlier.Rogers, Shaw sign deal to stream original Amazon video content on ShomiShaw Communications Inc profit declines 7% as cable, satellite, phone subscriptions slipIt said the operating income benefitted from a more focused approach to its consumer-oriented telecom services, as announced last year, as well as growth in its two business-oriented segments.Its media segment — which includes specialty TV channels and the Global Television network — had $58 million of operating income before items, 4.9 per cent from $61 million last year.The consumer telecom segment had $409 million of operating income before restructuring and amortization, up from $408 million.The business network segment increased operating income by $6 million to $65 million while the new business infrastructure segment contributed to $25 million in the most recent quarter, compared with nil last year.Shaw’s overall revenue rose to $1.34 billion, up about five per cent from last year. Revenue from the media segment was flat, dipping to $238 million from $239 million in the second quarter of 2014.“The positive operating momentum continues across our businesses,” chief executive Brad Shaw said in a statement.“We are seeing the financial and operational benefits of the restructuring we started last year as part of our multi-year Focus to Deliver initiative . . . enhancing our efficiency and growth potential while better serving the needs of customers and viewers.” read more