WINNIPEG – MTS saw first quarter profits increase by 35.6% year-over-year, despite a dip in revenues.
For the period ended March 31, 2014, consolidated revenues of $401.5 million were down 1.3% from $406.7 million in the first quarter of 2013. This was mostly due to Allstream legacy revenue declines, lower wireless voice revenues and wireless wholesale declines, partly offset by strong revenues from broadband, converged IP, wireless data and EPIC Information Solutions.
Consolidated EBITDA of $147.6 million fell 0.7% from $148.6 million year-over-year as cost reductions and growth in strategic lines of business were offset by lower margins from Allstream legacy services and lower wireless wholesale revenues. Net income for the period was $41.9 million, up from $30.9 million in the first quarter of 2013.
The company's MTS division, which includes its wireless, Internet and television services, had operating revenues of $248.5 million, a 2.1% increase from $243.5 million last year.
Total wireless revenues of $90.4 million dipped 1.2% compared with $91.5 million year-over-year, while Internet revenues grew 10.1% to $30.6 million from $27.8 million in the same quarter last year. Revenues from the company's Internet protocol TV services were $21.1 million, a 6% lift over $19.9 million in the first quarter of 2013.
In Q1 2014, MTS surpassed the 100,000 bundled customer milestone, as the number of customers with bundled services increased by 4.9%, to 102,553. MTS also delivered increased average revenue per user (ARPU) from wireless subscribers and Internet, and added subscribers in wireless, Internet and IPTV.
The company's business unit, Allstream, posted total operating revenues of $161.9 million, a 5.7% decrease from $171.7 million last year. Allstream’s Q1 2014 performance reflects improvements in its operations and continued growth in on-net IP-based services while improving profitability.
“MTS Allstream delivered solid results and made progress on our 2014 strategic plan in Q1,” said CEO Pierre Blouin, in a statement. “We are regaining momentum at Allstream, where IP revenue grew 4.3% during the quarter. At MTS, we exceeded 100,000 bundled customers. This is a major milestone that reflects one of our key strategic advantages and which contributed to our strong broadband results.”
