August 7, 2009 / 1:03 PM / 9 years ago

UPDATE 1-Manitoba Telecom Q2 profit falls, cuts FY EPS view

* Says to cut capex from cont ops

* Sees FY rev, EBITDA at lower end of prior view

Aug 7 (Reuters) - Canada’s Manitoba Telecom Services MBT.TO posted lower quarterly results hurt mainly by lower revenue at its Enterprise Solutions division and lowered its full-year earnings view due to expected lower revenue and a debt refinancing.

Manitoba reported a net income of C$30.1 million, or 47 Canadian cents per share, for the second quarter, compared with C$38 million, or 58 Canadian cents per share, a year ago.

Earnings from continuing operations fell 6 percent to 67 Canadian cents per share.

Operating revenue fell about 5 percent to C$464.3 million.

Analysts on average had expected the company to earn 76 Canadian cents a share, excluding items, on revenue of C$484.9 million, according to Reuters Estimates.

The company said it expects 2009 earnings from continuing operations of C$2.80 per share, which is below the low end of its earlier forecast of between C$2.90 and C$3.20 per share.

Manitoba said it expects to meet the lower end of its 2009 outlook for revenue, EBITDA (Earnings before Interest, Tax, Depreciation, Amortization) and free cash flow from continuing operations.

The company also said it would reduce capital expenditures from continuing operations to reflect expected revenue and will be reduced by an additional 10 percent in the Enterprise Solutions division.

Manitoba also raised its cost-cut target for 2009 to between C$50 million to C$60 million, from its earlier estimate of C$35 million to C$40 million.

Shares of the company closed at C$34.50 Thursday on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Gopakumar Warrier)

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