TORONTO – After reining in revenue projections for next year, MTS Allstream said that it is also aiming to cut costs by between $25 million and $35 million.
The cost reductions will come from “operational efficiency programs mainly associated with legacy product lines and restructuring initiatives”, the Winnipeg-based company said Wednesday in its 2011 financial outlook. Revenue projections range from $1.67 billion to $1.77 billion next year, a slight decrease from 2010 totals which projected $1.74 billion to $1.79 billion.
"Our 2011 financial outlook reflects our belief that improved performance at Allstream, the continued stability and strength of MTS, and tight cost management will combine to make MTS Allstream a more competitive and a more valuable company," said CEO Pierre Blouin, in a statement.
The MTS division, which delivers services like home Internet and TV services, is gearing up to roll out its new high-speed packet access (HSPA) wireless service next year, plus will expand its fibre-to-the-home program in four new communities where it faces cable telephony competitors. It also announced plans for a new billing platform early in the new year.
The Allstream group, which caters to corporate customers, announced plans to exit what it called “low-margin product lines” and “shift resources to support IP growth” which will result in the loss of 150 positions. IP revenues are forecast to grow by 10 – 12% next year.
Blouin said that the company’s financial outlook is in line with analysts’ consensus estimates. For more on the company’s plans in 2011, click here.
