Internet, digital cable and digital phone subscriptions are up at Shaw Communications Inc. and free cash flow is down due to competition in Western Canada, the company said Friday. In a quarterly financial report released Friday, Shaw said its Internet subscriber base increased by 18,681 during the second quarter ending Feb. 29. The company’s digital cable subscribers increased by 46,564 during the quarter to reach 1,925,518, and its digital phone line subscriber base grew by 54,407 to reach 1,310,417 total lines, the company said. Consolidated revenues for the company were also up over the three and six-month periods ending in February, reaching $1.23 billion and $2.51 billion, respectively, the company reported. In a release, Shaw said those numbers were up by 3 per cent and 10 per cent, respectively, from the same period last year. The company said profit margins were down by 2.2 per cent in the quarter, and that this decrease in margins put “short-term” pressure on the company when coupled with weakness in the advertising market. Shaw cut its annual cash flow outlook by $100 million from $550 million to $450 million. Earlier this week, UBS Securities predicted that Shaw’s second quarter results would reflect a “costly defence” against rival Telus Communications Co. “We believe the attractive promos and improved customer service helped moderate basic subs losses to Telus sequentially and added services with existing subs,” the research note said. “e are uncertain the improved subscriber trends can be sustained given we believe management has not only ended the mass market promos but also raised rates in March,” UBS said.