06/25/2015 08:10 EDT | Updated 06/25/2016 05:59 EDT

Shaw Profit Drops 8%, Company Abandons IPTV Plans


CALGARY - Shaw Communications Inc. 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.

"The Internet is changing the way we live, communicate, work, and share. In this new world, scale is important and Shaw is committed to building global partnerships that deliver best in class, customer experiences," chief executive Brad Shaw said in a statement.

"We are currently working with Comcast to begin a technical trial of their cloud-based X1 platform and be the first in Canada to capitalize on Comcast's cloud technology."

Shaw made the comments as the Calgary-based cable, Internet and satellite service provider announced an 8.3 per cent 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 per cent 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.

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