MTS profits leap on directory business sale, but turnover down

Manitoba Telecom Services (MTS) has reported fourth-quarter net profit of CAD216.1 million (USD182.5 million) up from CAD14.6 million a year ago, thanks to the sale of the Winnipeg-based telco’s directories business to Yellow Pages Group for CAD281 million. Quarterly revenues were CAD479.1 million, down from CAD494.2 million a year ago. For the year, net income amounted to CAD299.4 million, up from CAD213.7 million in 2005, on revenues that declined to CAD1.9 million from CAD1.98 million amid the transition of the company’s business mix to higher-growth services. ‘Our fourth-quarter results demonstrate the progress we have made in improving our business fundamentals and creating a sound platform for long-term growth,’ stated CEO Pierre Blouin. MTS is the incumbent local telephony provider in Manitoba, and also operates national communications services, mainly aimed at corporate and wholesale clients. It has recently suffered a decline in its residential subscriber base in its home province, but in 2007 it says it is focused on increasing its broadband customer base whilst aiming to launch a new range of services for small businesses across the country