This page includes Regulatory news filings supplied by issuers listed on the BSX. Please note the BSX is not responsible for the content, accuracy or completeness of announcements filed by issuers and disclaims all liability for any loss arising from reliance on information contained within issuer announcements.
Preliminary Announcement of KeyTech Six Month Interim Results
Hamilton, Bermuda: 03 December 2009 - KeyTech's consolidated net income for the six month period ended 30th September 2009 is $7,134,513 compared to a net income of $5,373,720 for the same period last year. Included in net income for the period is $1,954,891 annual profit from Bermuda Yellow Pages' print directory, which was distributed during the first six months of the fiscal year. Net income for the 2009 current period remains $2,327,325 below that achieved for the same period in 2007.
"The partial recovery in 2009 of consolidated unaudited net income is due to lower total costs as well as growth in data and wireless revenues," said KeyTech CEO Sheila Lines. "We remain cautious about general economic conditions, however 2009 growth in wireless and data revenues is an encouraging change over the same period in 2008. We attribute these results to our commitments to invest in wireless and data infrastructure technologies and to continuously improve service levels. In 2009, M3 Wireless deployed 3G services, the first cellular carrier in
Operating revenues for the period were $57,596,835 compared to $56,802,710 for the six month period ending September 30th 2008, an increase $794,125 or 1.4% due to growth in wireless and data revenues. As with incumbent telecom companies around the world, wire line local voice revenue for The Bermuda Telephone Company Limited ("BTC") continues to decline as customers increasingly rely on wireless and data messaging services for personal and business communications. Wire line voice revenues declined $1 million, or 9%, in the period.
According to Ms. Lines "The decline in fixed local voice revenues sparked by cellular substitution and increasing reliance on data services is a trend that we expect to continue. We have seen no leveling off of this tendency either globally or locally. Thus, BTC must continue to expand its data capabilities. We are currently developing a multi-year capital program to execute this strategy. A critical element in our decisions about how and when to invest in infrastructure, however, will be the policy choices the Ministry makes with respect to regulatory reform".
Total expenses for the period were $51,700,617compared to $52,200,914 for the same period last year, a decrease of $500,297 or 1% due to a number of cost reduction initiatives undertaken in the prior year.
During the six month period, KeyTech invested $6,176,242 in capital assets compared to $27,362,519 during the prior period. According to Ms. Lines, "As anticipated, our rate of capital investment has reduced with the completion of the Challenger submarine cable, BTC's Internet protocol-based Next Generation Network and M3 Wireless' WCDMA/3G network ."
In June BTC transitioned from its legacy billing and provisioning systems to a new integrated billing and operations system. This conversion was not without its issues, impacting BTC's ability to complete service faults and installations in a timely fashion. Fault repairs and Call Center answer times have now returned to previous high levels, and the process of service installations continues to improve.
In keeping with the growing demand for data services, in October, BTC offered reduced prices on 10 megabit per second ("Mbps") and 100 Mbps Ethernet services for business customers, and in November, BTC launched 6 Mbps Simply DSL service for residential consumers.
M3 Wireless was the first to launch 3G in March 2009 and complemented its high speed rollout with the introduction of the iPhone. Data revenues increased in the period while roaming revenue held steady. M3 Wireless' attractive unlimited voice, data and text plans launched in May 2009 have also proven to be popular.
Logic remains at the forefront of
Since its completion on budget and ahead of schedule in December 2008 Challenger has operated to specification and service has been uninterrupted. "Given extensive existing retail competition in the Bermuda telecommunications market, our strategy for Challenger continues as a wholesale service provider to other carriers. We believe this is the most effective way for our group, our industry and Bermuda to benefit from this substantial international cable system investment." Said CEO Sheila Lines.
In the current six month period WestTel, operating in the Cayman Islands, made important advances in the corporate market including the completion of phase one of a fixed line fiber network in key business areas.
"These are challenging economic times. However we will continue with our strategy of diversification across the communication sector and ensuring we have the assets, products and services to meet growing customer demand for data and wireless services," said KeyTech CEO Sheila Lines.
Equity earnings in affiliates for the six month period were $1,109,675 compared to $748,503 in the prior period due to growth in earnings from Bermuda CableVision.
Basic and fully diluted earnings per share for the six month period ended 30th September 2009 were $0.49 compared to $0.37 for the same period last year.
Investment income and realized gains and losses from marketable securities for the period were a loss of $85,507 for the period compared to a loss of $10.587 for the same period last year. Income from non-controlling interests for the period was $214,127 compared to $34,008 for the same period last year.
The Company declared a dividend of $0.15 per share for the quarters ending June 30th 2009 and September 30th 2009.