WINNIPEG – Despite revenue growth in its wireless, IPTV and Internet business, MTS Inc. reported a net loss of $52.9 million in its second quarter, the company announced Thursday.
MTS reported overall revenues increased just $0.6 million over Q2 2012 to $247.4 million. While revenues from wireless, broadband and converged IP services grew by 5.1% or $7.3 million compared to the same period a year earlier, it was offset by a $6.7 million decline in unified communications, security and monitoring, local, long distance and legacy data revenues.
MTS increased the number of customers with bundled services in the second quarter by 5.1%, to 99,418. In addition, it reported that 62% of post-paid subscribers now have data plans, 82% of MTS's IPTV customer base subscribes to its premium Ultimate TV service and over 200,000 Manitobans subscribe to MTS's high-speed Internet plans.
Wireless subscriber revenues for Q2 were at $88.8 million, a $7.6 million increase over the same quarter a year earlier. Wholesale revenues, on the other hand, decreased 36.1% to $6.2 million, as MTS said other carriers move their customers from MTS's CDMA network to their own HSPA networks. CDMA revenues were $28.6 million in 2012 and are expected to be $18.4 million in 2013, with further declines expected over the next three to five years.
In May, MTS announced it was selling its Allstream business services unit to Accelero Capital Holdings, the investment company owned by former Wind Mobile backer Naguib Sawiris, for $520 million; as a result it said Allstream is now reported as discontinued operations.
MTS also faced a potential strike of its professional and manager employees during its second quarter. Despite this, CEO Pierre Blouin said in a release that "MTS moves forward as a stronger, more focused and more stable company. Our second-quarter performance reflects our leading position in Manitoba as a pure-play telecom provider.”
Blouin added the company is well-equipped to defend its market position in Manitoba thanks to strong FCF growth, low customer churn, stable ARPU in MTS’s strategic business lines, and investments in its LTE and FTTH networks.
