MTS Allstream reports lower Q4 revenues

WINNIPEG - Regional telecom MTS Allstream (TSX:MBT) reported Wednesday a net profit of $37 million in the fourth quarter of 2012, almost unchanged from $36.9 million in 2011.

Revenues in the fourth quarter were down six per cent to $413.1 million from $439 million in the same quarter of 2011.

Earnings per share were down a penny to 55 cents year-over-year.

The Winnipeg-based company says for fiscal 2012 it had revenues of $1.7 billion, down 3.5 per cent in 2012, mostly due to a decline in revenue from older technology and voice services.

While net profit was higher at $175.4 million, compared with $167.1 million in 2011.

Earnings per share for fiscal 2012 were $2.63, up 3.1 per cent in 2012, mostly attributable to earnings before interest, taxes, depreciation and amortization and lower income tax expense.

MTS Allstream said it had $33.6 million in annual cost savings, the eighth consecutive year in which the company achieved its target.

For fiscal 2013, the company expects revenues to be $1.63 billion to $1.73 billion and earnings per share to be $1.75 to $2.15.

The company's Manitoba Telecom Services Inc. division said its wireless data revenues were up 29.7 per cent to $116.3 million for fiscal 2012.

Revenue for its Internet protocol TV services were up 11.2 per cent, or $78.5 million, year-over-year.

And high-speed Internet revenues were up 8.4 per cent or $110.1 million, in 2012.

In the Allstream business division, revenues for Internet protocol services were $243.6 million, up 1.6 per cent, for fiscal 2012.

The company said it has no news to report on the strategic review of the Allstream division, which could include its sale.

Revenues from local phone services in fiscal 2012 were $179.7 million, down 8.6 per cent and long distance revenues were $91.8 million, down 14 per cent.