Company news release. Looks like PCS subscriber adds came in below the estimates I posted yesterday, but MIKE came in above.
Company Press Release
SOURCE: Clearnet Communications Inc.
Clearnet Announces Q4 1998 Subscriber Results Break-out Quarter For Mike Subscriber Growth
SCARBOROUGH, ON, Jan. 12 /CNW-PRN/ - Clearnet Communications Inc. (''Clearnet'') today announces the following subscriber results:
Net Additions Net Additions
3 Months Ended 3 Months Ended
December 31, 1998 December 31, 1997
----------------- -----------------
Digital 65,770 65,575
- Mike 26,352 14,899
- PCS 39,418 50,676
Analogue SMR (7,468) (2,983)
Total 58,302 62,592
Total as at Total as at
December 31, 1998 December 31, 1997
----------------- -----------------
Digital 308,473 95,225
- Mike 114,095 44,549
- PCS 194,378 50,676
Analogue SMR 40,532 56,687
Total 349,005 151,912
Net digital (Mike and Clearnet PCS) subscriber additions for the fourth quarter ended December 31, 1998 were 65,770, bringing Clearnet's total digital subscribers to 308,473.
Net PCS subscriber additions (which were entirely post-paid) for the three and twelve months ended December 31, 1998 were 39,418 and 143,702, respectively, bringing total PCS subscribers to 194,378. The fourth quarter net PCS subscriber additions represented an approximate 25% increase in the total number of PCS subscribers as compared to 154,960 at September 30, 1998. Primarily as a result of the launch of digital PCS service in the Qu\006bec City, London and Victoria areas in the fourth quarter, POPs covered (the number of people residing in a Clearnet coverage area) by digital Clearnet PCS service increased to approximately 13.7 million at December 31, 1998 from approximately 12.3 million at September 30, 1998.
Net Mike subscriber additions for the three and twelve months ended December 31, 1998 were 26,352 and 69,546, respectively, bringing total Mike subscribers to 114,095. The fourth quarter 1998 net Mike subscriber additions represented a 77% increase over the 14,899 net additions for the same period one year earlier and a 30% increase in the total number of Mike subscribers as compared to 87,743 at September 30, 1998. POPs covered by Mike service were approximately 16.5 million at December 31, 1998 as compared to approximately 16.3 million at September 30, 1998.
Analogue SMR net subscriber additions were negative 7,468 in the fourth quarter ended December 31, 1998, decreasing total analogue SMR subscribers to 40,532 at December 31, 1998 as compared to 56,687 at December 31, 1997. Clearnet's ongoing transition program was successful in converting 1,605 of Clearnet's analogue SMR subscribers to the digital Mike network in the fourth quarter. POPs covered by analogue SMR service were approximately 19.0 million at December 31, 1998.
George Cope, Clearnet's President and Chief Executive Officer, said, ''the fourth quarter of 1998 was an important milestone for both the Canadian wireless industry and for Clearnet itself. One year ago, certain incumbent competitors expressed concern about the effect of new competition and prospects for growth in wireless demand in Canada. At that time, Clearnet set an ambitious target to more than triple its digital subscriber base in 1998 to total 295,000. Industry concerns have proven to be unfounded since the Canadian industry appears to have recorded another record year of growth, exceeding 1 million subscriber additions for the first time compared to the prior record of approximately 830,000 net subscriber additions. As well, Clearnet exceeded its annual target by adding 213,248 digital subscribers in 1998 to total 308,473. More importantly, Clearnet is particularly pleased about the positive implications for its future financial performance given the quality of Clearnet's subscriber growth, which was entirely post-paid and achieved while maintaining price discipline.''
•Break-out Quarter For Mike Subscriber Growth •Commenting on the record fourth quarter for Mike subscriber growth, Mr. Cope said, ''since the Mike network focuses on the business segment of the
wireless market it does not experience the conventional seasonal fourth quarter peak demand that consumer oriented PCS and competitive prepaid offerings benefit from. So we are very excited about the record Mike subscriber additions in the fourth quarter, which nearly doubled from those of the third quarter. These results appear to reflect sustainable success resulting from the new i1000 handset, the acceptance of Mike in the white collar marketplace and the recently launched British Columbia market.''
The subscriber results disclosed in this release are subject to possible adjustment per Clearnet's normal end of year audit process. Clearnet expects to announce complete fourth quarter and year ended 1998 financial results per its normal release schedule on or about February 23, 1999.
Clearnet (TSE, ME: NET.A - news; NASDAQ: CLNTF - news) is a leading Canadian wireless communications company that operates three separate wireless networks: digital Clearnet PCS nationally, the digital Mike network in Ontario, Qu\006bec and British Columbia, and analogue dispatch communication services across Canada. To learn more about Clearnet, please visit our web site at www.clearnet.com
FORWARD LOOKING STATEMENTS
Some statements in this news release look forward in time and deal with other than historical or current facts. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including the risks associated with: changing local and regional economic conditions, prospects for subscriber growth, the costs of infrastructure and handsets, market acceptance of wireless telephony generally and Mike and Clearnet PCS specifically, average subscriber revenue levels, technological developments of ESMR and PCS and of present and future competing products and services and other risk factors detailed in Clearnet's comprehensive public disclosure documents and other filings with securities commissions. Clearnet's actual future experience may differ substantially from the expectations described in such forward-looking statements.
SOURCE: Clearnet Communications Inc. |
