Shaw Communications Inc. (TSX:SJR.B) says it has abandoned a project to develop an Internet protocol platform for delivering television programming in favour of a cloud-based alternative from U.S. cable giant Comcast.
Shaw made the comments as the Calgary-based cable, Internet and satellite service provider announced an 8.3% decline in third-quarter net profit, which fell to $209 million from $228 million a year earlier.
The quarter ending May 31 included a $55-million writedown ($41 million after tax) related to an Internet protocol TV development project that Shaw began in 2013 and suspended last year.
Shaw's third-quarter net income was 42 cents per share, including the impact of the Internet protocol TV writedown. A year earlier, net income was 47 cents per share or $228 million.
Its revenue increased 5.7% to $1.41 billion from $1.34 billion in the third quarter of last year.
Shaw said the primary reason for the revenue increase was its acquisition of ViaWest last September, which accounted for $63 million of Shaw's revenue from business infrastructure services in the quarter.
Shaw shares opened Thursday's trading at $27.80, up 12 cents, or 0.4%, from Wednesday's close, within a 52-week trading range of $26.19 to $31.93.
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