MTS revenues down due to legacy revenue declines

Manitoba Telecom Services Inc.'s third-quarter revenues were down 3.7 per cent, the company reported Thursday. Revenues were $408.4 million for the three-month period ended Sept. 30, down from $424.3 million at the same time a year earlier. The company said in a release Thursday the decline was “due to legacy revenue declines, including $12.2 million in planned reductions at Allstream, and a $2.6 million reduction in MTS wireless wholesale revenues as other carriers move their customers from MTS’s CDMA network to their own HSPA networks.” Net income was $25.4 million, down $33.2 million from the same period a year earlier, the company reported. “Strong growth in data revenues” contributed to an increase in average revenue per user for wireless services, which was $62.35 per month in the third quarter, up from $60.58 a year earlier, MTS said. The company had 496,749 wireless subscribers by the end of the quarter, a 0.4 per cent increase from 494,564 a year earlier. MTS also said it increased its number of residential high-speed Internet subscribers by 7.1 per cent, from 176,921 a year earlier to 189,546. Its television subscribers increased 6.7 per cent in the same time period, from 99,723 to 106,406. The quarterly report included the results of MTS subsidiary Allstream. In October, the federal government blocked the planned sale of Allstream to Accelero Capital Holdings. MTS CEO Pierre Blouin said in a release the company was “disappointed in the government’s decision to reject the sale of Allstream” and that its planned focus for the subsidiary was to “continue to focus on adding more on-net IP customers, expanding our share of connected buildings in major urban centres across Canada, delivering innovative products and services to our customers, and reducing our cost structure to improve financial performance.”

MTS revenues down due to legacy revenue declines

Brief | November 8, 2013

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