WINNIPEG – First quarter profits at MTS Allstream were up $10 million over last year due largely to the strength of its wireless, Internet and IPTV services in Manitoba.
The Winnipeg-based company reported net earnings of $53.1 million for the three months ended March 31, 2012, up from $43.4 million in the same period last year. Revenues were weighed down by the planned reductions in Allstream legacy revenues, resulting in a 1.0% year-over-year decrease from $439.4 million to $435.1 million.
Consolidated EBITDA grew 2.8% when compared to the prior year due to growth in MTS revenues, Allstream's continued focus on converged IP revenues and improving margins, and strong cost management.
At MTS, wireless, high-speed Internet and IPTV services generated 8.9% revenue growth, which offset declines in local, long distance and legacy data services. The division increased the number of customers with bundled services by 6.9% to almost 92,000.
Wireless subscribers grew 1% to 488,571, with postpaid subscribers totalling 391,997, a 4.0% increase over last year. At quarter end, 48% of all postpaid wireless subscribers had data plans, a 31% increase.
MTS reported a total of 100,087 television customers, including 95,695 IPTV subscribers, a 5.8% year-over year increase, while its high-speed Internet subscribers rose 2.7% to 190,247 this quarter.
The company’s Allstream business telecom division added 99 buildings to its national IP fibre network in the first quarter of 2012, increasing its total number of fibre-fed buildings to 2,487, a 14.9% increase from the first quarter of 2011.
The company also said that it achieved $18.0 million in annualized cost savings and is “well-positioned” to meet its guidance range of $25 million to $35 million in annualized cost savings for the year.
"The first quarter of 2012 was a solid start to the year. MTS delivered excellent results, proving once again we are the telecom provider of choice in Manitoba”, said CEO Pierre Blouin, in a statement. “Nationally, Allstream continues to drive growth and improve profitability with its focus on on-net converged IP services – adding 99 more fibre-fed buildings to its national IP network. Our performance in the first three months of the year positions us well to meet our 2012 financial guidance ranges."
In addition, the board of directors declared a quarterly cash dividend of $0.425 per share for the second quarter of 2012, payable on July 16, 2012 to shareholders of record.
