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2014-05-05 at 14:28

Tbaytel revenue jumps slightly in 2013

By Leith Dunick, tbnewswatch.com
ENERGY 103 104Play Minute to Win it at 7:20 weekdays mornings with Kaile Jaggard and WIN! on your station for 80’s 90’s and Now…Energy 103 104 Click Here!

Tbaytel’s contribution to city tax coffers is expected to remain at $17 million.

The municipally owned utility’s revenue, released in a corporate report late last week, was up slightly more than $2 million last year, coming in at about $169.5 million, 65 per cent of which came from its wireless product line. That’s a two per cent drop compared to 2012, when 67 per cent of revenues came from their wireless service.

Tbaytel employed 382 full-time and 43 part-time workers last year, and says it spent $30.25 million on material purchases in Thunder Bay and surrounding communities in Northwestern Ontario in 2013. That’s down about $4.2 million over 2012.

The dividend is expected to be announced later this month.

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Tbnewswatch.com(27)

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Comments

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fairlane says:
Just think of what that would cost you and I in taxes if the city didn't have that $17 million dividend.

Say what you want, but the city doesn't get a dime in dividents from Shaw, Bell or any other carrier in the city.

Tbaytel's mobility sales dropped $2 million and they're still keeping up with their contribution. How many companies can say they do that.

Good Job!
5/5/2014 3:27:36 PM
meta says:
Okay Let's start Tbaytel bashing!!!! where are all you bashers!!
5/5/2014 3:51:02 PM
musicferret says:
Revenue increasing does not = increased profits. Just ask Amazon.

Tbaytel's margins are declining, as are their wireless share, which is their main profit driver.
Combine with that increasing bandwidth requirements and needed infrastructure investments, they are in a tough spot; hence borrowing $10m from the city. The biggest number in the above article is the 2% reduction in their wireless. That is a big deal as the wireless has been their cash cow for years. No more.
5/5/2014 6:30:47 PM
SadButTrue says:
It doesnt say wireless revenue went down. Just that it only accounts for 65% of their business where previously it had 67%. This could be that TV has increased its share of their business. Since overall revenues are up that's my initial take on it.
5/6/2014 8:17:32 AM
Robert Bob says:
Did I miss something, I must be very bad at Math. Did not Tbay Tel just have to borrow 10 Million from the City. It's time for the City of Thunder Bay to try and get some value from Tbay Tel and sell them while they still can. At least 350 million. Lets see they spent 40 million in the last two years expanding Cellular Network. Now they need to further expand to increase the LTE coverage. Data usage going up, need to expand again. Competetion is going to eat into the revenue numbers whiich is less profit down the road. Take the Money from the Sale, Invest in the City and some long term investments with good rate of return.
5/5/2014 4:07:33 PM
tsb says:
The city isn't going to get $350 million for TBayTel. They'll be lucky if they can get half that.
5/5/2014 6:47:36 PM
fairlane says:
Yeah, I think you did. Big companies all over the world leverage debt while still providing value to their shareholders. It happens all the time and it makes GOOD business sense even though it might be hard to understand. In this case, the city is the shareholder.

Why would you want to SELL a company that is making you money? That makes no sense. If they were losing money and costing us money then absolutely. Notice that the company made less money but still provided the same dividend (profit) to the shareholder (us). They're doing a lot better at managing finances than the city is.

5/5/2014 7:48:05 PM
sandstorm says:
Sure @Meta I'll start.....think part of that 17 million came from the 10 million they asked the city for? Wasn't it just a few months ago they were saying they'd have to lower the dividend because they weren't making money? If they've "lost" money.. contrary to what the article says, and they can still give that much money... it doesn't cross your mind they're gouging you JUST a bit? If it wasn't for Bell coming in a few years ago with their $50 plan... you'd still be paying upwards of $70/80 a month for crappy service.
5/5/2014 4:43:50 PM
educator says:
I'm not sure where you got your information from, but tbaytel has never stated they were in trouble and from the looks of their increased revenue streams, I see nothing but positive results.

It's uniformed fear mongers such as yourself starting unsubstantiated rumours that makes me shake my head. Your hatred for tbaytel is clearly evident given the fact you make up crisis to try and support your opinion.
5/5/2014 7:15:10 PM
chezhank says:
It would be nice to know how much revenue was generated from the rate increase TBAYTEL gave customers? Also what were the expenses? Okay Leith,ask them what the net revenues were from TBAYTEL? How about a little transparency from city hall!
5/5/2014 5:48:50 PM
OdieCleghorn says:
Bell Mobility all the way. Cheaper plan, faster network. I don't see how people continue with Tbaytel when they don't even match the $50 a month plan anymore.
5/5/2014 6:33:20 PM
debt collector says:
Really? Some of the most vocal Bell supporters have started posting negative comments about Bell's service on social media, some have even switched back to tbaytel.

Doesn't sound like things are all that rosy with Bell.
5/5/2014 11:07:54 PM
Wolfie says:
Bell isn't offering the $50 plan either anymore.
5/6/2014 7:12:10 AM
OdieCleghorn says:
Ahh you're right. Brutal, oh well glad I got in at $50 a month when I did.

5/6/2014 12:26:59 PM
Shane Caker says:
I'm tired of lending my tbaytel cell phone to Bell subscribers while traveling in the district.
5/6/2014 6:08:36 PM
j_northey says:
Bell was doing a 'loss leader' with the $50 plan earlier - people throughout the country were claiming to be in Thunder Bay in order to get it (same plan was over $100 elsewhere). I switched away from Bell during that stretch as I was so sick of poor reception outside the city. TBayTel isn't perfect, but I've used Rogers, Telus, and Bell in the past and all have their issues too. At least with TBay I know profits come back to our city.
5/7/2014 9:02:52 AM
OntNortherner says:
You could get the $50 plan from Bell without having to claim that you were in TBay. Also I did a speed test on my Bell phone while in TBay and the download speed was an incredible 46.66 mps on their true LTE network. I was a TBay tel customer for many years and never seen speed like that, ever. Alos was downloading music on the ride home on the highway to see if their network working and yea it works. They have more towers on 11/17 than TBay tel, so I have been told. So far pretty happy with the switch to Bell.
5/7/2014 10:52:00 AM
Wolfie says:
I may be wrong, but I thought the $10 million wasn't borrowed from the city. I thought it was borrowed on the open market to take advantage of low rates? Does anyone know for sure?
5/5/2014 6:49:21 PM
Wolfie says:
5/6/2014 7:16:00 AM
bluejaysfan says:
Sandstorm did you ever stop to think that maybe Bell is offering predatory pricing in Thunder Bay and that that $50 plan is offered literally nowhere else in Canada. In Toronto my plan would cost $120 for less then what you get in Thunder Bay by either Bell or Tbaytel.

I don't see Bell putting $30 million into the economy or offering over 400 decent jobs.
5/5/2014 7:24:28 PM
tbay1983 says:
Sandstorm if you ever happen to leave your cave and travel to any large city in Canada you'll find that $70 or $80 would be a deal. Bell was only offering a cheap plan in TBAY. Anywhere else the same plan is around $100. If you look at all carrier pricing now they are all inline including tbaytel and is the best in the country. As for the 10 million that was borrowed if you understood business you'd know that all businesses borrow at times instead of paying cash. It doesn't mean your broke. The economics of selling tbaytel even if would be for 750 million would be detrimental to our city by the loss of direct jobs, spinoff jobs and subsequent tax increases.
5/5/2014 7:33:00 PM
SomeGuy says:
It's very short sighted to sell TBaytel for a quick money fix. Given that if we can only sell it for $300 million you will most likely not get a all cash offer since most large transactions are for cash & stock.

Do we really want to saddle the city of a bunch of Rogers/Telus/Bell stock? No we don't because their stock is driven by the market out $300 million could turn into a lot less really quick.

Second off TBaytel is still managing to pay a 10% dividend which is a very good return on your investment. TSX 60 stocks only return about 1/3 of that on average.

Revenues have not declined, yes they have flat lined but the market is saturated not a lot of growth and the company still turns a profit.
5/5/2014 7:47:20 PM
reese says:
Dish Network with internet acess and majic jack works fine until it rains love my land line

Can you hear me now?
5/5/2014 9:41:42 PM
Today1 says:
Tbaytel 425 employees-telephone
CUPEE 87 620 employees- the rest of the City
5/6/2014 12:03:46 AM
nvjgu says:
Wow, 17 MILLION dollars just from Tbaytel. What happins to all that money. It's obvious they are not paveing.
5/6/2014 12:17:05 AM
The Badger Mountain Hermit says:
Maybe if they hired 1,000 people their phone service would be twice as good.
5/6/2014 7:08:20 AM
northernpedlar says:
Also we should remember all the sponsership that Tbaytel provides. How many organizations, sports teams and events benefit from their generous donations. This would be greatly missed if Tbaytel were sold.

5/6/2014 8:26:16 AM
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