MTS improves wireless churn, but still feeling double-cohort effect

Manitoba Telecom Services Inc. said it made improvements to its post-paid wireless churn for the third consecutive quarter, though its total wireless subscribers were still down from a year ago, as it reported higher earnings numbers Wednesday evening. The telecom provider, which is in the midst of being acquired by BCE Inc., reported revenues for the three-month period ended June 30 of $252.3 million, a 1.6 per cent increase compared to the same quarter last year. Net income was also up 0.9 per cent over the year to $11.3 million in the second quarter of 2016. Regarding the Bell acquisition, CEO Jay Forbes said the company filed the necessary documents with the CRTC, the Competition Bureau and Innovation, Science and Economic Development, the last of the regulatory approvals needed to close the transaction. It is expected to close later this year or early next year. MTS added 1,743 wireless customers in the quarter, for a total of 484,021 wireless subscribers. However, that total was down by 12,438, or 2.5 per cent, compared to a year ago. Wireless revenue was also down to $87.3 million this quarter from $87.6 for the equivalent quarter last year. Blended wireless average revenue per user (ARPU) was up, however, by $1.11 to $59.08. “Churn management has been a huge focus for us over the last number of quarters,” Heather Tulk, MTS’ chief customer officer said on a conference call Wednesday evening. “We are proud to say that we’ve seen improvement in post-paid churn now for the third consecutive quarter.” She added that the positive trend is despite “a much higher than historical level of our customers off-contract at any given time.” Last summer, the CRTC’s Wireless Code provisions eliminating three-year contracts came into effect, creating a double-cohort effect of both three and two-year contracts expiring at the same time. The company also reported a gain of 2,111 Internet subscribers in the quarter, for a total of 229,467. It lost 542 TV subscribers for a total of 105,570 IPTV subscribers by the end of the quarter. Internet revenues were up 3.1 per cent to $38.2 million, but IPTV was down slightly to $22.1 million, resulting from a decline in subscribers and channel subscriptions.

MTS improves wireless churn, but still feeling double-cohort effect

Brief | August 4, 2016

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MTS improves wireless churn, but still feeling double-cohort effect

Brief | August 4, 2016

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