Shaw: Growth plans not affected by Corus strains

TORONTO — Shaw Communications Inc. reported a thirdquarter loss on Thursday, after booking a nearly $300-million impairment charge related to its stake in Corus Entertainment Inc., but its senior executives said Shaw’s growth plans and dividends won’t be affected by troubles at Corus.

The Calgary-based cable, internet and wireless company, which owns about 38 per cent of Corus equity, said it hasn’t depended on the $90 million a year in dividends it had been receiving from the Torontobased media company.

Corus announced on Wednesday that it will reduce its dividends by about 80 per cent starting on Sept. 1, and divert the savings to debt reduction.

The announcements pushed down the Corus share price by about 27 per cent over the past two days. The stock closed at $4.63 on Thursday.

Shaw’s shares were down 98 cents, or about 3.5 per cent, at $26.76 at the close on Thursday — about the mid point of its 52-week price range — after the company announced weakerthan-expected earnings that included a $284-million impairment charge on the Corus assets.

Shaw executives declined to comment Thursday on reports that they might be considering the sale of Corus shares. Chief executive Brad Shaw said the company is moving ahead with investments in fifth-generation wireless technology.