I clipped their First Q Report... See Below or their website for details
Manitoba Telecom Services Inc. Continued Strong Performance in First Quarter
Stock Symbol : MBT
Winnipeg, April 25, 1997 - Manitoba Telecom Services Inc. (MTS) today announced its 1997 first quarter financial results.
Net income for the quarter increased to $21.2 million, producing earnings per share of $0.30 - an increase in net income of 9.8% (on a pro forma basis) over the first quarter of 1996. Operating revenues for the three months ended March 31, 1997 rose to $152.1 million, a 2.8% increase over the first quarter of 1996.
Commenting on the company's financial performance, Bill Fraser, President & CEO said, "Our strong performance in the first quarter reflects our commitment to grow our revenues, manage costs, and focus on our core businesses. MTS is the telecommunications pace-setter in the province, and Manitobans are taking full advantage of the new services we are introducing. Almost all our lines of business produced revenue gains in the first quarter."
Revenues from local services increased by 12.6% to $71.1 million over the first quarter 1996, due primarily to rate increases directed by the CRTC, price restructuring and continued growth in enhanced services.
MTS continued its lead, and enjoyed strong gains in the rapidly-growing wireless market. Revenues of $15.8 million for wireless services (cellular, paging and group communications) were 18% higher than in the first quarter in 1996. As the preferred provider of cellular services in Manitoba, MTS had more than 90,000 cellular customers by March 31, 1997 - a year over year increase of 34.3%. By the end of the quarter, MTS counted over 10,000 pager customers, an increase of 27.5%.
Investments in new technologies and new services are paying off as the company leads Manitoba into the digital, on-line future. Revenues from directory services and multimedia, including Internet services, were $7 million, representing a 16.1% increase over 1996. Internet customers tripled to over 13,500 at March 31, 1997. MTS is the leading commercial provider of Internet access in Manitoba.
Long distance revenues at $52.2 million were 15.9% lower than in the first quarter of 1996. "MTS is competing aggressively in the long distance market. Following up on the 14 cent a minute spot specials we introduced in the first quarter, last week we announced our most attractive long distance savings plan ever, called First RateTM " said Cheryl Barker, Vice President Finance & CFO. "In addition to retaining market share, these competitive actions in the long distance market will stimulate usage. At the same time, we're working hard to grow the other sources of revenues, which were up $14 million in the first quarter of 1997."
Consolidated operating expenses for the quarter increased by 4.2% to $123.9 million reflecting higher depreciation rates due to reduced service lives, together with higher operations expense resulting from increased levels of business. Debt charges were reduced by 56.2% to $9.5 million compared to the first quarter of 1996, as a result of the recapitalization.
Financial Highlights
(thousands of dollars)
(unaudited)Three Months Ended March 31ÿÿÿ19971996Total Operating Revenuesÿÿÿ$152,120 $148,016 Net Income From Operationsÿÿÿ$28,215 $29,145 EBITDA1ÿÿÿ$76,346 $71,828 Net Incomeÿÿÿ$21,162 $8,993 Cash Flow From Operationsÿÿÿ$38,112 $14,941 Total Capital Assetsÿÿÿ$1,037,802 $1,082,365 (1)Earnings before interest, taxes, depreciation and amortization
Manitoba Telecom Services Inc. is the only full-service provider of local, long distance, wireless, directory and multimedia telecommunications services in the Province of Manitoba. MTS operates a world class, fibre optic based, all digital, province-wide network. Its common shares are listed on the Winnipeg, Toronto and Montreal stock exchanges (trading symbol : MBT).
For further information, please contact :
Media :
June Kirby
Director Corporate Communications
(204) 941-7654
Investor Relations :
Brad Woods
Director Investor Relations
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