As a result of the strong demand for the Company's array of services and containment of operating costs, consolidated net income (for the period ending 31 March 1999) increased to $14 million from $12 million in 1998. Revenues increased in 1999 to $82 million, up from $69 million in 1998.
This was due in large part to the continued increase in service demand, as well as a full year of operations for Logic. The growing acceptance of cellular as a convenient and affordable complementary service to the more traditional wireline communication service provided outstanding growth during the year, assisting in increasing the Company's weighted average earnings per share to $7.70, up from $6.32 in 1998.
KeyTech substantially increased its capital expenditure in 1999 to $25.0 million, compared with $19.6 million in 1998. The Company will continue to make substantial capital investments to meet the growth needs of our customers in the future and to provide advanced telecommunications solutions.
The Company also had a successful year with its portfolio of investments producing a $1 million gain on sale of foreign currency and Bermuda dollar investments. As gains of this nature are the result of movement in international and local markets, KeyTech is not forecasting a similar experience in future years.
KeyTech's mix of revenues will vary significantly for the financial year 2000. The introduction of competition in both the local and international markets has seen, and will continue to see, traditional subsidies removed. Prices of services will be affected by market forces as well as the cost of providing these services.
The purpose of creating KeryTech Limited as a holding company for opening subsidiaries was to afford greater flexibility in the rapidly changing competitive environment.
As we go forward, KeyTech will establish new partnerships and alliances that will add flexibility and growth to core businesses."
Additional Financial Highlights:
Total Operating Expense 1999 - $67,435,068 vs. 1998 - $55,854,972
Net Operating Revenue 1999 - $14,108,973 vs. 1998 - $13,142,264
Other Income 1999 - $2,491,201 vs. 1998 - $1,258,800
Dividends Per Share 1999 - $2.00 vs. 1998 - $2.00