MTS sees slight decline in revenue and slight increase in profit in second quarter

Hey there, time traveller!
This article was published 30/07/2014 (3550 days ago), so information in it may no longer be current.

MTS has reported a slight decline in revenue and a slight increase in profits for the second quarter as it continues to assert its market dominance in Manitoba and its long term struggle for profitability in its national enterprise division, Allstream.

The Winnipeg-based company posted revenue of $403.3 million for the period ending June 30, 2014, a 1.7 per cent decline.

Operating profits or EBITDA (earnings before interest, taxes, depreciation and amortization) was $142.5 million up 7.9 per cent.

Earnings per share was 37 cents for the quarter, up $1.15 from the second quarter of 2013 when the company was required to take an asset impairment review of Allstream.

MTS’s wireless subscriber numbers grew by two per cent but revenue declined $1.7 million to $87.1 million due to wireless pricing competition in Manitoba.

Internet revenue was up 12 per cent in the quarter and television services were up two per cent.

Total revenue at its Allstream division was down 5.4 per cent to $161.9 million but revenue from the key converged IP services were up 7.2 per cent to $64.2 million.

Even with increasing competition in the wireless market, MTS has 53 per cent of the Manitoba market, 54 per cent of the high-speed Internet business and 34 per cent of the Winnipeg market for television services which had previously been completely dominated by the cable companies.