Operational Insights of Canadian Telecommunications Market in Q216.


Toronto Stock Exchange TSX is the 8th largest stock exchange in the world by market capitalization and is a subsidiary of TMX group based in Toronto, Canada. In Technology sector of TSX 28 companies are listed under the category of Media and Communications, out of which the following 6 companies chosen on the basis of common unique telecommunication services i.e. Mobile, Telephone, Broadband and TV they are providing in the Canadian Region. These 6 companies are Bell Canada inc, TELUS Corporation, Rogers Communication, Shaw Communications, Manitoba Telecom Services and Cogeco Communications Inc. Total market value of these six on TSX up till June-2016 is valued at $124 Billion Canadian Dollars. Below are the operational insights and analysis of these huge market players.

Total 58.6 Million Canadian subscribers are being served by these companies. Bell Canada Inc. stands at 1st with highest number of 20.9 Million Subs which are 35.67% of the combined total. Rogers Communication stands at 2nd with 15 Million Subs with 25.6% share of subscribers. TELUS Corporation is the national telecommunication company and positions at 3rd with 12.6 Million Subs at 21.5% and Shaw Communications holds the 4th place with 6.3 Million Subs at a share of 10.75%. Cogeco Communications is the only Company amongst these six that doesn’t provide wireless communications services, even though comes to 5th with 2.5 Million Subs portioned at 4.27%. Lastly, Manitoba Telecommunication Services at 6th, obtains 2.22% share of subscribers totaled to 1.3 Million.

These market players are selected on the basis of common services i.e. Wireless/Mobile communications, Landline-Home Based telephone services, High-Speed Broadband/Internet services and Television Services through Cable/Fiber. 28.1 Million Subs are being served with Wireless/Mobile telecom Services which are 48.02% of the service type totals. 20.33% penetration percentage is for landline telephone services and 11.9 Million subs are these services. 10.1 Million Subs are using High Speed broadband internet services through cable, at 17.22% service type penetration percentage. 8.4 million Subscribers are getting television Media Services at a penetration rate of 14.42% of the combined group total of these six companies.

Commutatively these companies generated C$16.54 Billion Revenues in Canadian Dollars which are 13.3% more than the accumulative market value of these businesses. At 1st Bell Canada Inc. generated C$5,340 Million revenues that are 32.32% of the group total and their EBITDA is C$2,268 Million which is 42.47% of the generated revenues, it means 57.53% amount of revenues spent operational and other costs. On 2nd Rogers Communication succeeded in producing C$3,821 Million revenues at 23.12% of the group total, its EBITDA was C$2,448 Million which is 64.07% of revenues and expensed 35.93% over meeting its running costs. TELUS Corporation at 3rd generated C$3,148 Million revenues that are 19.05% of the group total, its EBITDA was C$1,188 Million which is 37.74% of revenues generated by TELUS. At 4th Manitoba Telecom grasped 15.27% of revenues share to C$2,523 million with EBITDA of C$1,015 Million, even though it obtains the least position in subscriber acquisition grouping. Shaw Communication at 5th generated C$1,151 Million and almost 50% is spending on meeting its operational costs with securing its EBITDA to C$502 Million. Cogeco Communications earned the least share of revenues as compare to group total, which is 3.27% to C$540 Million while fortifying almost 45% of revenues before taxes.
Media Communications and Tele Communications markets are the fastest growing markets around the world now a days because of the changing needs of emerging businesses and technological platforms to communicate with faster, better, un-interrupted and secured way.

All of the above figures are taken from the Toronto Stock Exchange and Public Sector available reports for Q2 2016.

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