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Investment Profile
Manitoba Telecom Services Inc.
Common Shares
Trading Symbol: MBT
Listed on the Toronto Stock Exchange
Manitoba Telecom Services Inc. is a leading national communications provider in Canada. Our company is organized into two operating segments, the MTS Unit ("MTS") and the Allstream Unit ("Allstream"). Operating under two principal brands, MTS and Allstream, we build upon our unique combination of market leadership in Manitoba and agile competitive presence in business markets across Canada to deliver innovative telecommunications solutions that bring value to customers. We employ approximately 6,000 people.
MTS leads every telecommunications market segment in Manitoba, delivering a full suite of next generation wireless, high-speed Internet and data, converged IP, digital television and wireline voice services under the MTS brand, as well as security and alarm monitoring services through AAA Alarm Systems Ltd., a subsidiary of Manitoba Telecom Services Inc. This complete range of products is unmatched by any other provider in Manitoba, and the digital television service offered by MTS is recognized as one of the leading North American digital television services. With this innovative combination of products and services, we connect people, homes and businesses everywhere.
Allstream is a leading competitor in the national business and wholesale markets, offering customers a portfolio of solutions tailored to the needs of small, medium and large businesses looking for success in a world of rapidly evolving technology - Internet protocol ("IP")-based communications, unified communications, voice and data connectivity, and security services. Allstream operates an extensive national broadband fibre optic network that spans almost 30,000 kilometres, and provides international connections through strategic alliances and interconnection agreements with other international service providers. Allstream's advanced services, combined with the impressive reach of a state-of-the-art network and continued leadership in technological innovation, have allowed us to forge strong relationships with top national business customers across the country.
| At a Glance | |||
|---|---|---|---|
| (in millions, except EPS) | 2009 | 2008 | |
| Revenue* | $1,823.4 | $1,867.1 | |
| EBITDA* | $625.1 | $666.4 | |
| EPS* | $2.64 | $3.03 | |
| Free Cash Flow* | $233.5 | $266.2 | |
| Total Assets | $2,896.4 | $2,653.0 | |
| Shareholders' Equity | $1,316.9 | $1,382.0 | |
| Common Shares Outstanding | 64.7 | 64.6 | |
| Operating Statistics** | 2009 | 2008 | |
| Wireless Subscribers | 458,478 | 434,776 | |
| Consumer High-Speed Internet Customers | 181,913 | 176,637 | |
| MTS TV Customers | 86,520 | 84,544 | |
| Business Network Access Services | 844,514 | 854,763 | |
| Residential Network Access Services | 348,098 | 369,003 | |
| * from continuing operations - see our 2009 annual Management's Discussion and Analysis for a description of our continuing operations ** as at December 31 |
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Core Strengths
- an extensive IP national network, spanning almost 30,000 kilometres of fibre across the country, together with a leading-edge regional network with extensive broadband capabilities in Manitoba
- an innovative product portfolio of IP-based services and network solutions for large enterprise, mid-market and small business customers
- a regional telecommunications franchise, which operates in Manitoba as the leading full-service provider, with very high brand recognition among residential customers and businesses
- a strong regional wireless franchise with significant continuing growth potential and the unmatched ability in Manitoba to bundle up to five services including wireline, wireless, high speed Internet, television and alarm monitoring services
- unrivalled high-speed Internet and wireless market shares of approximately 60% respectively in the Manitoba market
- a thriving digital television service offering, with a success rate that is unparalleled in North America; gaining a 34% market share in six years of operation in Winnipeg, Manitoba, the largest market in which we offer digital television services
- a dedicated, talented team of people, having the latest in skills and expertise with next generation products across the country, who are motivated to deliver on our strategies
- a strong balance sheet which provides significant financial flexibility, and
- a cost structure that supports profitable competitive success in our markets
2010 Financial Outlook
This financial outlook and the information contained herein have been reviewed by our Audit Committee and should be read in conjunction with the "Disclaimer Regarding Forward-Looking Statements" and the "Risks and Uncertainties" sections in our second quarter 2010 interim MD&A, as well as similar sections in our interim MD&A's for the first quarter of 2010 and fourth quarter of 2009, as well as our 2009 annual MD&A.
Our financial outlook for 2010 is as follows:
| 2010 Financial Outlook - Continuing Operations* | |
|---|---|
| Revenues | $1.780 Billion to $1.880 Billion |
| EBITDA | $585 Million to $635 Million |
| EPS | $2.00 to $2.50 |
| Free Cash Flow | $175 Million to $225 Million |
| Capital Expenditures | 14% to 16% of Revenues |
* As at August 5, 2010
This Investment Profile includes contains certain forward-looking information. Material factors or assumptions were applied in drawing conclusions or making a forecast or projection reflected in such forward information. Actual results may differ materially from a conclusion, forecast or projection in such forward-looking information. Additional information about such material factors and assumptions can be found in MTS's filings with the Canadian securities regulatory authorities. Except as required by law, MTS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise