Winnipeg winner: MTS beats analysts’ estimates

6 Feb 2008

Canadian full-service telco Manitoba Telecom Services (MTS) has reported fourth-quarter revenues that beat analysts’ estimates, helped by growth in IP and multimedia services. Revenue in the quarter ended 31 December 2007 rose 2.1% year-on-year to CAD489.2 million (USD490 million), ahead of an average forecast of CAD473.9 million by analysts polled by Bloomberg. The Winnipeg-based operator reported that profits excluding restructuring and other costs rose 8.8% to CAD0.62 a share, also beating projections, whilst net income fell to CAD14.3 million, or CAD0.22 a share, from CAD216.1 million a year earlier, when the company gained from the sale of a directory business. ‘Growth services’ revenues, which include wireless, high speed internet, digital television and converged IP communications services, were up by 15% to CAD204.7 million in quarter of 2007, and by 12.6% to CAD759.5 million for the full year. Growth services contributed approximately 42% of total 4Q turnover and 40% annually, well ahead of the 37% and 35% contributions, respectively, for the same periods of 2006. Users of the company’s IPTV service grew 16% in 4Q, while its basic fixed line telephony customer base remained little changed. Revenue from local telephony decreased by less than 1% to CAD133.4 million as fewer than 3,000 customers cancelled services. Sales from long-distance calls slumped 7.3% to CAD90.2 million. The carrier, which offers mobile services in Manitoba and operates nationwide via long-distance and enterprise division MTS Allstream, is considering bidding in the government’s planned May wireless frequency auction.

Canada, Bell MTS (formerly MTS)