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Manitoba Telecom Services posts net loss of $87.8 million in Q4

February 6, 2014

WINNIPEG - Manitoba Telecom Services has posted a fourth-quarter net loss of $87.8 million due to one-time accounting charges related to the failed sale of its Allstream business division and a Supreme Court decision involving one of its pension funds.

The loss amounts to $1.25 on a per share basis, compared with a net profit of $25.4 million, or 38 cents per share, in the same quarter a year ago.

CEO Pierre Blouin says that while the one-time charges hurt net income, they won't impact the Winnipeg-based telecom company's dividend.

Blouin said as a result of the high court's decision, MTS will have to increase benefits in one of its employee pension plans by $142 million in a move that affects current employees, retirees and employees who have left the company since 1996.

For fiscal 2013, consolidated operating revenues were $1.63 billion, down four per cent from $1.704 billion for 2012.

The net loss for the year was $84.4 million, or $1.24 per share, versus a net profit of $144.4 million, or $2.17 per share, for all of 2012.

(The Canadian Press)

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Source: Canadian Press Broadcast Wire (Canada)

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