MTS Allstream's Q1 broadband, converged IP revenues rise to $53.5 million

MTS Allstream reported in Q1 2013 that broadband and converged IP revenues rose 3.2 percent year-over-year to CAD 54.2 million (USD 53.5 million) due to strong IPTV and broadband revenue gains.

Despite the gains it saw with IPTV and broadband, overall revenues declined 6.5 percent year-over-year to CAD 406.7 million (USD 401.7 million), a factor it attributes to legacy service declines, including planned reductions at Allstream.

On the consumer side, Internet and IPTV revenues rose 4.9 percent to CAD 27.8 million (USD 27.5 million) and 2.6 percent to CAD 19.9 million (USD 19.6 million), due to subscriber growth and increased ARPU. Overall converged IP revenues were CAD 6.5 million (USD 6.42million).

At the end of the quarter it had a total of 196,643 broadband subscribers and a total of 102,568 TV subscribers. Meanwhile, IPTV and high-speed residential ARPU rose 0.4 and 3.9 percent CAD 66.63 (USD 65.85) and CAD 41.57 (USD 41.09), respectively.

As expected, local access and long distance and legacy data revenues declined 4.3 and 5.2, respectively, to CAD 64 million (USD 63.2 million) and CAD 18.1 million (USD18 million).

At Allstream, the story continued to be the growth of on-net IP-based services sales, which rose 1.3 percent. The telco added 88 buildings to its IP fiber network, ending the quarter with a total of 2,811 fiber-fed buildings.  

However, unified communications, hosting and security revenues declined 18.8 percent year-over-year to CAD 17.7 million (USD 17.4 million) due to decreases in one-time enterprise product sales and re-pricing of services.

Similar to the consumer group, Allstream's business local access and long-distance and legacy data revenues declined 17.4 and 15.7 percent to CAD 40.6 million (USD 40.1 million) and CAD 41.8 million (USD 41.3 million), respectively.

Shares of MTS Allstream were trading at CAD 31.84 (USD 31.4), down 0.28, or 0.87 percent, in late Friday morning trading on the Toronto Stock Exchange.

For more:
- see the earnings release (.pdf)

Earnings roundup: Wireline telecom earnings in the first quarter of 2013

Related articles:
MTS expands VDSL2, FTTH home network capabilities with Pace gateways
Legacy declines drag down MTS Allstream by 6 percent in Q4, to $410 million
MTS Allstream earnings get boost from IPTV, IP business services
MTS seeks U.S. investor for its Allstream business-services unit
MTS Allstream earnings reach $53M on IPTV, business services increase
Allstream adds nearly 300 fiber-fed buildings to network in Q4 2011

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