Expenses drive MTS profits down by a third

Manitoba Telecom Services (MTS) has posted a 33% year-on-year drop in second-quarter net profit to CAD38 million (USD36 million) following a rise in restructuring and other expenses. Revenues in the three months ended 30 June 2008 climbed 2.6% to CAD486 million compared to CAD474 million in the same quarter last year. The full-service telco said that it incurred costs related to its recent CAD41 million purchase of 35MHz of mobile spectrum covering Manitoba. However, it added that it cut overall costs by CAD20 million in the first half of the year, and has implemented efficiency measures aimed at saving CAD30 million in full-year 2008.