=Clearnet's 4Q Subscriber Report Exceeds Expectations
Dow Jones News Service via Dow Jones
By Scott Adams
TORONTO (Dow Jones)--Clearnet Communications Inc. (CLNTF), a Canadian wireless
company, said it gained 50,676 personal communications services, or PCS,
subscribers in the fourth quarter, exceeding analysts' expectations of about
30,000 new PCS subcribers.
David Freedman, an analyst with Bear Stearns in New York, said the
better-than-expected growth is a "strong and positive" statement about
Clearnet's promotional and distribution strength in the new Canadian PCS market.
Freedman said it isn't clear yet where the extra subscribers are new wireless
telephone subscribers or previous cellular phone customers poached from the two
Canadian cellular providers, BCE Mobile Communications Inc. (BCX) and Rogers
Cantel Mobile Communications Inc. (RCN).
Clearnet launched its PCS service in October.
Freedman said he will likely boost his PCS subscriber expectations for
Clearnet in 1998, but hasn't determined by how much yet. He was expecting about
135,000 new PCS subscribers for the year, with 25,000 in the first quarter and
50,000 in the fourth quarter, the latter quarter usually being the one with the
biggest additions.
Freedman has a "buy" rating on Clearnet's stock, with a price target of US$19
to US$20. He also follows Microcell Telecommunications Inc. (MICTF), another
Canadian PCS provider, which he also rates a "buy" with a stock price target of
US$12. Canada has four PCS providers, with BCE Mobile and Rogers Cantel being
the other two.
Freedman is looking for Microcell's subscriber numbers, but said it isn't yet
clear whether the company will release its numbers soon or when it reports
year-end results in February. He's expecting about 38,000 new PCS subscribers at
Microcell, which would bring its total PCS subscribers to about 60,000. Freedman
doesn't officially follow BCE Mobile and Rogers Cantel yet.
Thursday, Clearnet shares have advanced 1/16 to 11 15/16 in New York. In
Toronto, Clearnet's Class A shares are unchanged at 17.00. |
