Manitoba Telecom reports higher Q3 profit of $36.8M; revenue down slightly

WINNIPEG – Manitoba Telecom Services Inc. (TSX:MBT) says year-over-year net income increased in the third quarter despite a small decline in revenue.

The Winnipeg-based telecom which offers wireless, Internet and television and other services primarily in Manitoba, says it earned $36.8 million or 47 cents per share in the third quarter from $25.4 million or 38 cents in the comparable 2013 period.

Revenue declined marginally to $402. 4 million from $408.4 million.

The company said the $6 million or 1.5 per cent drop in revenue was mostly due to declines in Allstream legacy revenue as well as in wireless wholesale and wireless voice revenues, partly offset by strong revenue growth from converged IP, broadband, wireless data and business services.

Meanwhile, MTS said it added 10,875 post-paid wireless subscribers, 10,996 high-speed Internet subscribers and 5,402 IPTV customers in the past year.

“This strong growth in subscribers is reflected in MTS’s increased number of customers with bundled services, which grew six per cent to 104,463 since Q3 2013,” it said.

Wireless subscriber revenues were $91 million, up $1.7 million over the prior-year quarter, benefiting from a 17.9 per cent increase in wireless data revenues, partly offset by a decline in voice revenues driven by competitive pricing pressure in Manitoba.