newsbytes@clarinet.com (02/04/90)
MISSISSAUGA, ONTARIO, CANADA, 1990 JAN 30 (NB) -- Canadian Satellite Communications (Cancom) has reported a 19 percent revenue increase and expects a federal regulatory ruling to boost its profit in 1990. Cancom, which provides voice and data communications services by satellite along with satellite television operations, had revenues of C$36.4 million in 1989. That was a 19 percent increase from 1988's C$30.5 million revenues. Net income rose to C$4.2 million from C$2 million. Cancom has boosted its 1990 profit projection from C$6 million to $8 million because the Canadian Radio-television and Telecommunications Commission (CRTC) has told Telesat Canada to reduce the rates it charges Cancom for the use of its satellites. Louise Tremblay, vice-president of finance and administration, told Newsbytes the CRTC order corrected excessive charges to Cancom since 1984. Tremblay also confirmed that Rogers Communications, a major cable television operator and part owner of CNCP Telecommunications of Toronto, Ontario, plans to increase its stake in Cancom from 15 to 21 percent. That move needs CRTC approval, Tremblay said. Approval is expected to be granted. Cancom's major shareholder is WIC Western International Communications, of Vancouver, British Columbia. Cancom also announced that Southam, a Toronto-based publisher which owns daily newspapers across Canada, has signed a contract to use its Satlink very-small aperture terminal (VSAT) satellite communications service. Voice and data communications account for about 15 percent of Cancom's business, Tremblay said, while broadcasting makes up the rest. (Grant Buckler/19900202/Press Contact: Louise Tremblay, Cancom, 416-272-4960)