WINNIPEG – First quarter profits at MTS Allstream jumped 58% driven by performances in its wireless and broadband divisions, the company announced Wednesday.
Net income for the quarter ended March 31, 2011 was $43.4 million, more than double $27.4 million in the same period last year, which the company said was due to an increase in EBITDA and other income, partly offset by higher depreciation, amortization expense, and income tax expense. Consolidated revenues of $439.3 million in the quarter were down 6% from $442 million year-over-year, though EBITDA grew 14.7% ($19.2 million) compared to the same period in 2010.
CEO Pierre Blouin said that the company’s first quarter results are in line with its expectations and financial outlook for the full year.
"Our first quarter results across the company were strong and demonstrate that our strategy is working," Blouin said in a statement. "We are focused on driving growth in wireless, IP television, broadband and IP-based services; increasing high-margin on-net sales at Allstream through the expansion of our fibre network; and continuing our cost reductions. In the first three months of the year, we made excellent progress in each of these areas and are well positioned to deliver results in the 2011 outlook ranges."
Revenues in the company’s “growth services” (wireless, high-speed Internet, and IP TV) increased collectively by 9.4%. At March 31st, MTS Allstream had 483,722 wireless subscribers, a 5.3% increase from 459,554 in the first quarter of 2010; a high-speed subscriber base of 184,899, up 0.8% from the prior year; and 90,468 subscribers to its IP TV services, representing a year-over-year increase of 1.1%. Close to 44,000 of those customers subscribe to the MTS Ultimate TV service, double the number of subscribers from the same time last year.
The company’s Allstream division continued to benefit from the increasing market demand for IP-based services as converged IP revenues increased 7.9% in the first quarter when compared to the same period last year.
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