Shaw Communications hikes rates, triples Q3 profits

While its profits more than tripled in the third quarter, Shaw Communications is raising rates for residential TV, internet and phone customers in August.

TV, internet and phone customers to pay more starting August 1

CBC News · Posted: Jul 15, 2016 2:21 PM EDT | Last Updated: July 15, 2016

Shaw began mailing its customers notices of the bill hike starting last month. (Jeff McIntosh/The Canadian Press)

While its profits have more than tripled from the same time last year, Shaw Communications is raising rates for residential TV, internet and phone customers starting in August.

The Calgary-based company says customers can expect to see a monthly fee increase of up to $5 for television, $2-3 for internet and $1 for phone services, depending on the services they subscribe to.

"This rate adjustment is due to both rising operational costs and investing in our network and technology advancements" as "more people connect with more devices, more often," Shaw said on its website.

The company will work with customers "on a one-on-one basis" to review their packages and address concerns, it added.

Profits up

Meanwhile, the company said Friday that its profits more than tripled in the third quarter, boosted by the sale of its media division to Corus Entertainment Inc.

Shaw says it earned $704 million or $1.44 per diluted share for the three months ending May 31, up from $209 million or 42 cents per diluted share in the same quarter a year ago.

The results included a $615 million one-time gain on the sale of Shaw Media to Corus for $2.65 billion in cash and shares.

Revenue in the quarter was $1.28 billion, an increase of 13 per cent from $1.14 billion.

In addition to the Corus deal, Shaw acquired Wind Mobile earlier this year for $1.6 billion.