Jim Shaw, CEO or Shaw Communications, is seen here speaking at the company's annual meeting in 2008.
Shaw Communications Inc. is boosting its dividend by 5 per cent after sales of its bundled services pushed revenues higher, even as overall profits were impacted by debt repayments.
The Calgary-based cable television, Internet and phone company said net income slipped to $114.2-million, or 26 cents per share, for the quarter, down from $123.5-million or 29 cents per share during the comparable quarter a year earlier.
Shaw's profits in the quarter ended last Nov. 30 were affected by $82-million in costs related to debt retirement, or repayments of its outstanding debt, which was nearly double the amount logged a year earlier.
Total revenue from all services rose nearly 11 per cent to $905.9-million from $817.5-million as it grew its customer base and increased service rates.
The earnings missed expectations of 35 cents per share according to a survey of 14 analysts by Thomson Reuters, though the company soared above their predictions of $895-million in revenue.
Shaw also announced that it will increase its annual dividend by four cents to 88 cents on Class B shares starting on March 30.
"Our solid balance sheet and moderate risk profile have allowed us to use current economic circumstances and capital market conditions to our advantage to strengthen our capital structure and lower costs," chief executive Jim Shaw said in a statement ahead of the company's annual meeting in Calgary.
"The successful debt offerings at attractive rates completed during the quarter demonstrate the financial and operational strength of the business."
Shaw also owns the StarChoice direct-to-home satellite TV service, and is a major supplier of Internet and digital phone services in western Canada.
Shares in the company rose five cents to $20.75 on the Toronto Stock Exchange on Thursday.