Topic: How To Invest

MANITOBA TELECOM $33.90 – Toronto symbol MBT

MANITOBA TELECOM $33.90 (Toronto symbol MBT; Shares outstanding: 67.8 million; Market cap: $2.3 billion; TSINetwork Rating: Average; Dividend yield: 5.0%; www.mts.ca) recently sold its Allstream subsidiary for $405 million in a deal that closes later this year.

Without Allstream, Manitoba Tel earned $28.2 million, or $0.42 a share, in the three months ended June 30, 2013. That’s down 12.7% from $32.3 million, or $0.49, a year earlier.

However, revenue rose 0.2%, to $247.4 million from $246.8 million, as strong demand for wireless and Internet services offset lower revenue from the company’s regular telephone services.

Manitoba Telecom is a buy.

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