TV Service Continues to Gain Market Share

Article Excerpt

MANITOBA TELECOM SERVICES INC. $47 (Toronto symbol MBT; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 66.8 million; Market cap: $3.1 billion; SI Rating: Average) launched its TV service in 2003, which uses high-speed Internet technology to deliver TV signals over regular telephone lines. This business now has 27% of Winnipeg’s TV market, and should easily reach its goal of 35% by 2010. Bundling this service with other packages has also helped Manitoba Tel fend off strong competition from cable companies. The company will probably have to start upgrading its TV system in the next few years so it can handle more high-definition channels. But the costs should not impair Manitoba Tel’s ability to pay its $2.60 dividend, which yields 5.5%. Besides, adding new services such as video-on-demand and pay-per-view should attract new customers and expand revenues from current users. Manitoba Tel is a buy. buy…