As a result, returns for shareholders increased and KeyTech’s strategic position strengthened.  For the year ending March 31, 2008 KeyTech’s net income was $14.6 million, up from $9.2 million in the prior year.

Total revenues for 2007/08 increased $3.1 million to $108.5 million due to growth in data, cellular and fixed wireless revenues which offset declines in fixed line local voice revenue.  “Although diminishing fixed line local voice revenue is consistent with global industry trends, our diversified service offerings allow us to continue to grow revenue from rising business and residential customer demands for data and wireless services” said KeyTech CEO Sheila Lines. 

Operating expenses for 2007/08, excluding amortization expenses, were $0.6 million lower year over year due to carefully considered expense management and minimal windstorm or hurricane damage to plant and facilities. Amortization expenses decreased $1.3 million from fiscal year 2006/07 largely resulting from the full depreciation of certain capital assets.  In total, expenses decreased $1.9 million to $95.5 million.

During the financial year KeyTech invested $24.8 million in capital assets, to maintain existing plant and improve its networks in Bermuda and Cayman and also support provision of new services.  During the prior year KeyTech invested $21 million in capital assets. 

“Operational investments which reduced net income in 2006/07, the launch of M3 Wireless’ easyConnect service and the preparatory work for a new submarine cable to Bermuda, have delivered results in 2007/08” reported KeyTech CEO Sheila Lines.

In July 2006 M3 Wireless introduced easyConnect, a wireless broadband service and during 2007/08 easyConnect revenue increased to $1.2 million, or 300% over the prior year. M3 Wireless’ success in attracting wireless broadband customers indicates that there exists an increasing demand for wireless broadband.  The easyConnect service is well positioned to meet those customer needs.

In December 2007 KeyTech, together with its consortium partners Transact Limited and North Rock Communications Ltd., were successful in their bid before the Ministry of the Environment, Telecommunications and E-Commerce to acquire a Class A license.  The license allows the consortium to build and operate a new submarine cable between Bermuda and the USA. Construction of the system is now well underway with an anticipated completion date during KeyTech’s fiscal year to March 31, 2009.

Technological innovation is essential in maintaining market leadership in telecommunications. During the past year, BTC developed plans to migrate its circuit-based voice network to a packet-based (or Internet protocol) next generation network platform.  The first phase of the implementation is underway and the target date for commercial product launch is the fourth quarter of fiscal 2008/09.

To meet mobile customer demands and keep pace with global technology, M3 Wireless will complete its deployment of a WCDMA/3G network technology in the summer of 2008. This third generation (3G) network will offer mobile customers higher data speeds and enhanced roaming capabilities.  The new network will interoperate with M3 Wireless’ existing 2G network, providing additional network resiliency.

“We believe that providing exceptional customer service across all our businesses is fundamental to being able to retain our customers, grow our market share and continue to increase our revenue” said KeyTech CEO Sheila Lines.  “In 2007/08 we undertook in-depth customer satisfaction research to better understand what our business and residential customers expect from our companies and to measure how well we are performing against those expectations.  Although our results show customer satisfaction levels on par with those reported for the largest telecommunications companies in North America, our objective is to better our performance year over year.  With that in mind, each of our operating companies will develop and execute action plans in 2008/09 to improve customer satisfaction.

“Fiscal year 2008/09 will be a busy one for us” said KeyTech CEO Sheila Lines. “BTC will roll out its next generation network as well as implement its new billing, operational support and services system while M3 Wireless finishes construction of its WCDMA/3G cellular network. Together with its consortium partners, KeyTech will complete the US-Bermuda submarine cable system. Against this backdrop of network and technological development, KeyTech will continue its drive to be customer centric and marketing led. Our goal is to provide exceptional customer care together with the innovative products and services that our customers demand.”

Contribution to net income from affiliates improved by $0.4 million in 2007/08 to $0.5 million primarily due to improved results from Bermuda CableVision.  Bermuda CableVision settled a long-running copyright dispute with the Performing Rights Society which resulted in a one-time charge to earnings from affiliates of $0.3 million in the prior year.   

Total cash dividends paid to common shareholders for the year was $0.60 per common share, the same level as in the prior year.  At the end of the year, net assets per common share were $10.96, increased from $10.30 in the prior year.

The dividend for the common shareholders of KeyTech Limited for the quarter ending June 30, 2008 will be 15 cents per share.  A 1 for 10 share dividend for the holders of the common shares has been declared and will be issued fully paid on July 24, 2008.

KeyTech’s earnings per common share for the year were $1.102 up from $0.693 in the prior year. 

Operating revenues for the year were $108,477,914 as compared to $105,382,940 for prior the year. 

Net income attributable to shareholders was $14,595,959.  Net income attributable to shareholders for the prior year was $9,169,984.

Total equity earnings in affiliates for the year were $487,726 as compared to $29,544 for the prior year. 

Investment income for the year was $1,101,048.  Investment income for the prior year was $739,841.

Non-controlling minority interests for the year were $63,846 of earnings as compared to $441,789 for the prior year.