Shaw Communications (TSX: SJR) sank its digital claws deeper into the British Columbia cable television market Fruday when it announced that it was acquiring the cable systems in Winfield, Lumby, Pender Island, Mayne Island, Galiano Island and Lillooet, B.C. from Mascon Communications.
Terms of the deal with Mascon were not disclosed.
Shaw's President Peter Bissonnette was quoted as saying, "These cable systems compliment our existing cable properties in and around Kelowna and the Gulf Islands. We're delighted with the acquisition."
Mascon's founder Ian Mackay said that his customers would be able to have better services from Shaw than his 20-year-old communications company could provide.
Shares of Shaw Communications were up over 2.6% at $37.05, a new 52-week high, after the Canadian cable giant reported strong first quarter results.
Shaw Communications reported a 7% gain in fiscal first-quarter profit on added subscriptions for cable, Internet and phone service.
The Calgary-based company posted net income of $81.1 million, or 38 cents per share, for the three months ended Nov. 30, compared with $75.7 million, or 35 cents, in the year-earlier quarter. Revenue climbed 14%.
Jim Shaw, CEO, said both its cable and satellite divisions booked strong results for the period, or $671 million and that the company is on track to hit its goal of producing over $300 million in cash for the year. With that kind of bankroll building, Shaw is apt tackle more acquisition prospects, whether in the province of BC or elsewhere.
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