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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