» MTS Reduces Revenue Outlook on Lower Enterprise SalesTelecommunications Industry News

Telecom News Editorials Reports Glossary

MTS Reduces Revenue Outlook on Lower Enterprise Sales

4:32 pm on October 8, 2009 | Category: Business, Telecom Services, Telephone

Manitoba’s incumbent telephone operator, MTS Inc., reduced its 2009 revenue outlook yesterday, blaming the sluggish economy for lower-than-expected enterprise long distance sales.

The company expects to generate revenue of $1.855 billion to $1.9 billion for all of 2009, down from a previous forecast of $1.9 billion to $1.98 billion. Earnings per share are expected to be between $2.60 and $2.90 for the year.

MTS Chief Executive, Pierre Blouin, says that a decline in enterprise long distance revenue “is having a near-term impact on our financial results but has done nothing to undermine our positive long-term outlook.”

“We are taking the appropriate steps to position the company to benefit when the economy recovers, including our targeted cost reductions which are expected to achieve $50 million to $60 million of annualized savings in 2009,” Blouin explained.

Telecommunications Industry News