MTS reports declines

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This article was published 12/05/2016 (3499 days ago), so information in it may no longer be current.

JUST weeks after announcing an agreement to sell the company to BCE, Manitoba Telecom Services reported slight declines in top- and bottom-line metrics the first quarter.

The company is about a year into its transformation process to become a “customer-first” organization, and company CEO Jay Forbes said the results reflect progress made in that regard.

He said, “Our free cash flow has improved 35.7 per cent from the fourth quarter of 2015, and our operating metrics reflect the shift in focus to a customer-first company. These improvements are indicative of the progress made through transformation efforts launched in the last half of 2015.”

Revenue for the first quarter of 2016 was down two per cent to $250.7 million compared to the first quarter of 2015, EBITDA was down 7.6 per cent to $111.1 million and free cash flow was down 5.4 per cent to $45.6 million.

Capital investments decreased $12.1 million, mainly the result of more disciplined capital investment strategy.

As for the Bell deal, Forbes said it was historic for MTS and for the telecommunications industry in Canada.

“We believe the transaction with BCE positions us for an even of more successful future,” Forbes said. “The sensitivity Bell demonstrated in crafting an offer that addressed the unique needs of the Manitoba marketplace shows, in our view, that Bell is the perfect long-term owner of MTS, and under its ownership, Bell MTS will play a continued and significant role in the future of Manitoba.”

The deal is not expected to close until the end of 2016 or early 2017.