Manitoba Telecom Services its revenue and cash flow outlook for the year on Wednesday, saying its long distance business and enterprise unit were hurt by the recession and the slow pace of economic recovery.

MTS said it now expects 2009 revenue of C$1.855 billion ($1.75 billion) to C$1.90 billion, down from an earlier forecast of C$1.9 billion to C$1.98 billion.

It cut its target for earnings before interest, taxes, amortization and other income to between C$625 million and C$645 million, from a range of C$645 million to C$685 million.

Earnings per share are now forecast at C$2.60 to C$2.90, compared with approximately C$2.80 previously.

The company's revised outlook primarily reflects a sharper than expected decline in its legacy long distance business, as well as in the unified communications business, it said in a statement.

Its free cash flow target was trimmed to C$230 million to C$250 million, down from a range of C$250 million to C$280 million previously.

MTS released its updated forecast after markets closed. Its shares closed down 2 Canadian cents at C$32.98 on the Toronto Stock Exchange on Wednesday.

($1=$1.06 Canadian) (Reporting by Wojtek Dabrowski; editing by Peter Galloway)