GT&T parent company reports 16 per cent increase in revenue

Nov 06, 2008 News

Atlantic Tele-Network, Inc. the parent Company for Guyana Telephone and Telegraph Company (GT&T) yesterday reported a 16 per cent increase in revenue for the third quarter of the year ended September 30, 2008.
For the three months ended September 2008, the revenue was reported to be US$55.9M which represented a an increase of US$7.8M, or 16 per cent, as compared to revenue of US$48.1 M for the three months ended September 30, 2007.
Operating income increased 17 by per cent for the quarter to US$20.4M, as compared to US$17.4M for the said quarter the previous year.
Net income was reported at US$10.1M for the quarter, as compared to US$9.4 M for the same period in 2007, a minimal increase of US$0.7M.
Earnings per share were negatively impacted this quarter according to the report by US$0.04 as a result of the addition of two early-stage businesses; which include IslandCom Telecommunications, a Turks and Caicos-based wireless company, a controlling interest of which was acquired by Bermuda Digital Communications (BDC) in September, and ION, a New York State fiber optic network, in which Sovernet acquired a majority stake of in August.
For the first nine months of 2008, revenue was US$152.0 M, an increase of US$14.8 M or 11 per cent as compared to revenue of US$137.2 M for the nine months ended September 30, 2007.
Net income was US$28.2 M for the nine months ended September 30, 2008, as compared to US$25.3 M for the same period in 2007, an increase of US$2.9 M or 11 per cent. On a per share basis, net income also increased by 11 per cent to US$1.85 per diluted share from US$1.66 per diluted share for the nine months ended September 30, 2007.
“Our wireless operations accounted for well over half of all revenue in the quarter” said Michael Prior, Chief Executive Officer of Atlantic Tele-Network, Inc. “Strong growth in our US wireless operations continued, and this business unit accounted for two-thirds of total wireless revenue.
“This growth largely reflects the success of our accelerated build-out programme in rural areas of the West and Midwest in the first half of 2008 to meet the needs of our larger carrier customers.
“We expect the recent investment in Turks and Caicos by Bermuda to provide a small boost to wireless revenue over the next twelve months; however, the start-up nature of those operations is likely to generate modest losses for at least that period.”
“On the fixed line side of our business, our Guyana subsidiary helped drive another nice quarter of growth, but we expect to reduce our build-out of local access lines in coming quarters.
“We are excited by Sovernet’s expansion beyond Vermont and New Hampshire with its investment, alongside a number of rural telephone operators, in a state-wide fiber optic network in New York State. While we were happy to make these two new investments in the third quarter, they are relatively small and, given the strength of our balance sheet, we continue to look for larger opportunities.”
Local telephone and data revenue grew to US$12.8 M compared to US$11.6 M in 2007, an increase of US$1.2 M, or 10per cent. Our Guyana operations increased their local telephone and data revenue by US$0.7 M, or 10 per cent, from US$6.8 M to US$7.5 M, as access lines increased from 127,000 lines to 136,000 lines, or 7per cent, and interconnect fees increased.
International long distance revenue, all of which is generated by GT&T, was US$11.8 M in 2008, a decrease of US$1.5 M, or 11per cent, from US$13.3 M in 2007. This decrease was as a result of a considerable increase in illegal bypass activities in the quarter, resulting in lost revenue opportunities.

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GT&T parent company reports 16 per cent increase in revenue

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