Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: j g cordes who wrote (17614)	8/15/1998 5:46:00 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68168

This should give you some insight in the PCS service provider business. ******************************* Saturday, August 15, 1998 Clearnet's loss deepens But the company notches up strong growth in its subscriber base By PHILIP DeMONT Telecom Reporter The Financial Post ÿClearnet Communications Inc. posted strong subscriber growth for the second quarter, but its net loss grew. ÿClearnet lost $126.3 million ($2.60 a share) in the second quarter ended June 30, compared with a loss of $49.97 million ($1.25) in the same period a year earlier. ÿThe Toronto-based personal communications service company had second-quarter revenue of $32.3 million, more than four times the $7.4 million for the same period in 1997. ÿClearnet began PCS service last year and companies in the business typically suffer widening losses while they build their infrastructure. ÿA better indicator of the fledgling wireless carrier's health is subscriber growth. ÿIn the second quarter, Clearnet added 52,410 subscribers to its PCS and MIKE specialized radio networks -- for a total of 194,500. It increased PCS subscribers by 35,754 in the quarter, placing Clearnet third behind BCE Mobile Communications Inc. and Microcell Telecommunications Inc. in new additions. ÿOnce the extra MIKE users are added, however, Clearnet moves into second place in the quarter, slightly behind Microcell. ÿ"This is important evidence of the strong state of the Canadian wireless industry," said George Cope, Clearnet president and chief executive. ÿThe two incumbent cellular carriers -- BCE Mobile and Rogers Cantel Mobile Communications Inc. -- suffered in the fourth quarter of 1997 and first three months of 1998 as subscribers switched on their phone networks in fewer than expected numbers. ÿIn recent months, Cantel began making changes to reduce costs and boost use. ÿBy contrast, the upstarts Clearnet and Microcell have been enjoying strong subscriber growth. ÿIn the second quarter ended June 30, another phone service provider, Burnaby, B.C.-based Glentel Inc. almost tripled earnings before interest, taxes and depreciation to $452,000, up from $163,000 a year earlier. ÿGlentel lost $298,000 (4›) for the second quarter, compared with $553,000 (7›) for the same quarter in 1997. ÿBut, the long-distance provider and wireless retailer suffered a 16% loss in revenue for the period compared with last year, posting sales in the most recent quarter of $10.3 million. ÿIn the three-month period, it lost almost 1,300 long-distance subscribers, mainly due to increased competition. ÿOn Friday, Glentel (GLN/TSE) closed at 80›, unchanged. ÿShares of Clearnet (NETa/TSE) closed at $13.90, down 35›. ÿ