WINNIPEG – In its Q1 2013 results announced today, regional telecom MTS Allstream reported a 6.5% decrease in revenues to $406.7 million compared to the first quarter of 2012.
The company attributes part of the loss to a $14.1 million planned reduction at Allstream, as well as a $4.8-million reduction in MTS wireless wholesale revenues as other carriers move their customers from MTS’s CDMA network to their own HSPA networks. Free cash flow increased by 31.9% to $47.6 million, an increase of $11.5 million from the same period last year.
“MTS Allstream’s first-quarter results show that we continue to make progress on our strategy, with a 32% increase in free cash flow and annualized cost savings of $17.0 million,” said CEO Pierre Blouin in a statement. “Our ability to move quickly to take costs out of the business in response to changing market conditions helped offset declines from our MTS wholesale wireless revenues, and legacy revenues at Allstream.”
MTS wireless subscriber revenues were reported at $85.6 million, up 6.8% over Q1 2012, after adjusting for one-time equipment sales of $1.1 million in Q1 2013, driven by a 26.5% increase in wireless subscriber data revenues. The number of high-speed internet subscribers increased by 3.4% to 196,643 in the first quarter of 2013. Total television and IPTV subscribers also increased 2.5% and 2.7%, respectively, to 102,568 TV customers and 98,289 IPTV subscribers.
The first quarter of 2013 marked Allstream’s tenth consecutive quarter of year-over-year EBITDA growth and its return to generating positive free cash flow.
MTS Allstream says its first-quarter financial performance reflects the company’s strategy to leverage investments its MTS’s wireless and broadband networks in Manitoba, and Allstream’s IP fibre network nationally.
