Canadian cable multiple-system operator,
Shaw Communications Inc.
), has announced certain changes in its business structure to
boost overall productivity. Also, the organizational changes
might claim 400 jobs countrywide.
According to the new structure, the company operations will be
divided into two parts. One section will focus on servicing
residential customers including, satellite, cable, Internet and
home phone facilities. On the other hand, the other part will
take care of the company's business clients.
Shaw Communications' Media business will continue to operate
as a separate unit. The company has also merged its engineering
and IT department into Technology and Network Operations (TNO)
Although the structural changes will result in the
retrenchment of 400 employees, the company will be hiring over
new 100 employees. The new employees will be employed in the
rising business segments of the company which include marketing,
supply chain pricing and network architecture. Currently, the
company has nearly 14,500 employees.
Recently, the company reported second-quarter fiscal 2014
financial results where both the top and the bottom line
surpassed the respective Zacks Consensus Estimate. The company
lost 20,758 video customers in the reported quarter. However,
Shaw Communications added 12,767 Internet customers in the same
Shaw Communications currently has a Zacks Ranks #3 (Hold).
Near-term catalysts include gain in high-speed Internet and
telephony subscribers, the expansion of Shaw Go Wi-Fi networks,
more applications supporting the Shaw Global Go TVEverywhere
service and the launch of Anik G1 satellite, which enables the
company to add over 140 channels for the Shaw Direct service. On
the flip side, stiff competition results in continuous loss of
video and DTH subscribers.
Other Stocks to Consider
Other better-ranked stocks worth considering in this sector
Nippon Telegraph and Telephone Corp.
). All these stocks carry a Zacks Rank #2 (Buy).
BCE INC (BCE): Free Stock Analysis Report
NIPPON TELE-ADR (NTT): Free Stock Analysis
SHAW COMMS-CL B (SJR): Free Stock Analysis
AT&T INC (T): Free Stock Analysis Report
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