Jul 31, 2015

Report an error MTS' cash flow is up 41% from 2014. Second-quarter statistics released Tuesday showed huge gains over last year, in large part due to a turnaround at MTS Allstream as the company plans to sell its out-of-Manitoba internet service provider. "The new strategies for MTS and Allstream have been readily embraced by the two organizations, and we have begun to see some encouraging initiatives and early progress as a result," said Jay Forbes, MTS Allstream chief executive officer. "Within MTS, we have identified opportunities to be more efficient and to become more customer-focused, and will launch corresponding initiatives to capture these opportunities in the third quarter. " Allstream reduced its staff by 25%, about 500 people, and cut its capital expenditures by 20-30% to make the gains possible. A further 263 employees have received working notice and have scheduled departure dates over the next 14 months as Allstream prepares to be sold off. Although the restructuring increased MTS' cash flow, in the short term it also forced MTS' net income down $18.4 million; new restrictions against three-year contracts were also to blame. By adding a comment on the site, you accept our terms and conditions . Sponsored Links