MTS Allstream earnings reach $53M on IPTV, business services increase

MTS Allstream (Toronto: MBT.TO) reported that earnings rose to CAD 53.1 million (USD 52.9 million), up from CAD 43.1 million (USD 43.0 million), in the same period a year ago with a 19 percent jump in IPTV earnings and a 4 percent increase in Converged IP services for businesses.

The growth of its IP-based consumer and business services drove up the telco's consolidated EBITDA 2.8 percent over Q1 2011, while earnings per share were CAD 0.80 (USD 0.79), up from CAD 0.67 (USD 0.67), in the same quarter a year ago.

At MTS, the division that serves consumers, the service provider reported that wireless, broadband data and IPTV generated 8.9 percent revenue growth, offsetting ongoing declines in local and long distance voice and legacy data services. On a year-over-year basis, broadband and converged IP services rose 13.6 percent, to CAD 52.5 million (USD 52.4 million).

Of particular note, the number of customers that took a bundle increased by almost 6.9 percent to about 92,000 during the quarter.

Driven by the ongoing growth of IP on-net fiber-based services like Ethernet and Unified Communications (UC), Allstream reported that it increased EBITDA by 1.7 percent, to CAD 29.3 million (USD 29.2 million). Converged IP services rose 4.1 percent, to CAD 61.1 million (USD 61 million), while Unified Communications revenues were up 0.9 percent, to CAD 21.8 million (USD 21.7 million).

During the quarter, Allstream also continued to build a foundation for new business customer growth by adding 99 buildings to its fiber network, ending the quarter with a total of 2,487 buildings.

Of course, Allstream, like its MTS consumer counterpart, saw continued declines in traditional local voice services and legacy data. Local access declined 3.9 percent, to CAD 66.9 million (USD 66.7 million), and long distance and legacy data declined 12.8 percent, to CAD 19.1 (USD 19.1 million).

MTS Allstream's shares were trading Monday morning at CAD 33.99 (USD 33.90), down CAD 0.47 (USD 0.47), or 1.36 percent, on the Toronto stock exchange.

For more:
- see the earnings release (PDF)

Special Report: Wireline in the first quarter of 2012

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