By The Canadian Press

MONTREAL - Manitoba Telecom Services Inc. (TSX:MBT) more than doubled its third-quarter profit, as cost-cutting efforts offset a decline in revenue from its older communication services.

Net income and comprehensive income rose to $27.9 million or 43 cents per share, up from $13.7 million or 21 cents per share a year earlier.

Revenue fell to $449.4 million from $476.4 million, as a small increase at its "growth" services was more than offset by a decline at its older legacy services.

The company, which owns Manitoba's former regional phone monopoly, operates nationally through its MTS Allstream division, which provides enterprise services to large-scale business and public-sector clients.

"While economic pressures continue to impact our enterprise legacy portfolio and unified communications services, our results also highlight our success in strategic product lines that will define our long-term success, such as wireless, high-speed Internet, television and converged IP, which all grew strongly," said Pierre Blouin, the company's chief executive officer.

Blouin said the company isn't looking to be a national wireless player at this time.

He also said Manitoba Telecom Services doesn't have any plans to partner with new cellphone company Globalive, now sidelined because the CRTC has ruled the Toronto-based company isn't Canadian owned and controlled.

"I think the question is still a bit premature in the sense that the minister of industry has said he will look at this decision and consider it," Blouin said.

MTS is building an advance wireless network with Rogers Communications Inc.(TSX:RCI.B), which will also give it access to the national Rogers network as a roaming partner.

"Right now, we're happy with the arrangement that we have with Rogers," Blouin told analysts.

Blouin added that the company continues to look for operational improvements at its Enterprise Solutions division.

The company has revised its cost-cutting target for 2009, having already achieved $51.4 million in annualized savings in the first nine months of the year. The new target is for up to $60 million in savings this year.

Revenue from legacy services fell by $22 million or eight per cent to $244.7 million from $266.6 million in the third quarter of 2008. Revenue from newer services that are expected to provide long-term growth increased by $5.1 million or 2.4 per cent to $218.2 million.

Within the services categorized as growth opportunities, the biggest increases were at consumer-oriented markets where Manitoba Telecom faces less competition than at the national level.

The Consumer Markets division increased revenue from wireless services by 7.3 per cent, from Internet by 4.8 per cent and from digital television by 9.6 per cent.

The Enterprise Solutions division didn't fare as well, with total revenue falling by 6.4 per cent to $254.3 million. Most of the decline was at the division's legacy services but even revenue from so-called growth services fell by nearly $2 million to $110.2 million, a decline of 1.9 per cent.