MTS Allstream rides wave of IPTV, IP business sales in Q4 2011

MTS Allstream (Toronto: MBT.TO) continued to see its bets on IP-based consumer and business services pay off in Q4 2011 as 2011 year net earnings rose to CAD 167.1 million (USD 167.6 million). On a quarterly basis, the service provider reported net revenues of CAD 36.9 million (USD 37 million).

However, ongoing declines in TDM-based local and long-distance voice service revenues, drove down full-year consolidated revenue for 2011 by 1 percent to CAD 1.765 billion (USD 1.762 billion), while consolidated EBITDA rose to CAD 594 million (USD 595.8 million) from CAD 565 million (USD 566 million) in 2010.   

Alternatively, MTS Allstream's growing IP services suite drove up business and consumer growth.

Driven by the ongoing demand for high-speed Internet and IPTV services, MTS Allstream's broadband and converged IP revenues rose 12.8 percent to CAD 52.1 million (USD 52.3 million) and up 10.7 percent to CAD 201.1 million (USD 201.8 million) for the fourth quarter and full-year 2011, respectively.

Internet revenues rose 7.8 percent to CAD 26.2 million (USD 26.3 million) in Q4 2011 and 6.8 percent to CAD 102.6 million (USD 102.9 million) in 2011. At of the end 2011, MTS Allstream had 188,946 broadband Internet subscribers. IPTV also had a strong revenue showing in Q4 2011, rising 21.8 percent to CAD 19.0 million (USD 19.1 million) and 19.3 percent to CAD 70.6 million (USD 70.8 million).

MTS attributes the IP revenue increase to its ability to migrate customers off promotional plans, increasing its subscriber base, and raising prices.

On the business side, the results illustrated ongoing growth in converged IP-based business services.

During the quarter, the service provider reported that converged IP services revenues rose 6.6 percent to CAD 60.0 million (USD 60.2 million) in Q4 and 8.7 percent to CAD 235.4 million (USD 236.2 million) in 2011. These results were driven by a 19 percent increase in IP sales in Q4 and 21 percent in 2011, respectively.

A key characteristic of the IP service revenue mix was that 47 percent of the IP data circuits that were sold were on Allstream's own fiber network. The service provider added 75 new buildings to its fiber network in Q4, bringing its total number of fiber-fed buildings to 2,388 by the end of 2011.

Looking forward, the service provider has forecast revenues for 2012 between CAD 1.67 (USD 1.68 billion) and 1.77 billion (USD 1.78 billion)

For more:
- see the earnings release (pdf)

Special report: Wireline in the fourth quarter 2011

Related articles:
Allstream adds nearly 300 fiber-fed buildings to network in Q4 2011
Allstream lights up 100G network with Ciena
MTS Allstream: Q3 IP service revenue gains offset by legacy service declines
MTS Allstream's Q2 earnings improve, driving increase in 2011 revenue guidance

Suggested Articles

Vodafone Business announced this week that it has launched a new resource hub to help businesses bounce back from the impact of the COVID-19 pandemic.

CenturyLink's Shaun Andrews has a contrarian view in regards to how much the pandemic fueled digital transformations.

Data center provider Stream Data Centers is leaning on Cox Business' fiber network for its new data center campus in Goodyear, Arizona.