November 6, 2008 / 8:39 PM / 10 years ago

UPDATE 1-Manitoba Telecom profit hit by restructuring costs

TORONTO, Nov 6 (Reuters) - Manitoba Telecom Services MBT.TO posted a lower third-quarter profit on Thursday, as restructuring costs drove its expenses higher.

The communications company said it earned C$38.1 million ($32 million), or 59 Canadian cents a share, in the three months ended Sept. 30. That was down from a profit of C$45.5 million, or 70 Canadian cents a share, in the same period a year earlier.

Operating revenue rose to C$479.9 million in the quarter, from C$475.9 million a year earlier.

It said growth in wireless, digital TV, high-speed Internet and other Web based services helped results during the quarter.

The Winnipeg, Manitoba-based company has been clamping down on costs and, as a result, C$7.1 million in restructuring expenses cropped up in the quarter, a jump from C$2.3 million a year earlier.

“We have been very effective at achieving cost efficiencies over the last two years and expect to continue to find cost savings going forward,” the company said in a statement.

It said its enterprise services division, which deals with large corporate clients, was currently undergoing a review to determine where additional cost-cutting could be done.

The company kept its outlook for the rest of the year unchanged, but said it will adjust its expense and investment levels based on “any impact that the current economic conditions may have in the context of our 2009 plan.”

Shares of Manitoba Telecom were down 24 Canadian cents at C$42.50 on the Toronto Stock Exchange shortly after the results were released.

$1=$1.19 Canadian Reporting by Wojtek Dabrowski; editing by Rob Wilson

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