August 6, 2010 / 12:50 PM / 7 years ago

UPDATE 1-Manitoba Telecom posts lower Q2 profit, cuts dividend

* Q2 EPS C$0.44 vs C$0.47

* Rev down 2 pct

* Cuts dividend, 2010 outlook

Aug 6 (Reuters) - Canada’s Manitoba Telecom Services Inc MBT.TO reported a 6 percent drop in quarterly profit, as aggressive promotional pricing by a key cable competitor hurt margins, and cut its dividend and 2010 outlook.

The regional communications company cut its third-quarter dividend to 42.5 Canadian cents per share, from 65 Canadian cents.

For the second quarter, net income was C$28.2 million ($27.73 million), or 44 Canadian cents a share, compared with C$30.1 million, or 47 Canadian cents a share, a year ago.

The company earned 54 Canadian cents a share from continuing operations.

Revenue fell 2 percent to C$443.1 million.

Analysts on average were expecting earnings of 54 Canadian cents a share, on revenue of C$441.0 million, according to Thomson Reuters I/B/E/S.

For 2010, it sees earnings of C$1.80 to C$2.15 per share, compared with its prior view of C$2.00 to C$2.50 per share.

It expects 2010 revenue of C$1.74 billion to $1.79 billion. It had earlier forecast revenue of C$1.78 billion to to C$1.88 billion.

Shares of the company closed at C$27.32 Thursday on the Toronto Stock Exchange. ($1=1.017 Canadian Dollar) (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Don Sebastian)

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