Oct 31, 2009 News
– but parent company records significant profit
International calls routed through the Guyana Telephone and Telegraph Company (GT&T) have seen revenues dropping by 23 per cent and it is believed that the grim financial situation worldwide and illegal bypass activities have contributed.
This is according to the Third Quarter Report of GT&T’s owner, Atlantic Tele-Network Inc. (ATN).
International long distance revenue, all of which is generated by GT&T subsidiary, declined 23 per cent to US$9.1 million from US$11.8 million in 2008.
“We believe this decrease is a result of continued and considerable illegal bypass activities in the quarter resulting in lost revenue opportunities, as well as an overall reduction in call volume into Guyana attributable to the current difficult global economic environment.”
Wireless (mobile phones services) revenue in Guyana “increased by US$0.1 million as compared to the prior year. At the end of the third quarter, the local company had approximately 277,000 subscribers in Guyana, up from the 273,000 we had at the end of last year`s third quarter, and up from 266,000 as of the end of the 2009 second quarter,” an online statement said yesterday.
ATN said that its third quarter highlights saw total revenue up 18 per cent to US$65.9 million and wireless revenue increased 41 per cent to US$42.9 million.
“Operating income is up 13 per cent to $23.1 million, or 35 per cent of revenue” while net income increased 18 per cent to US$11.9 million, or $0.78 per diluted share.
According to the statement, for the three months ended September 30, 2009, revenue was $65.9million, 18 per cent above the $55.9 million reported for the third quarter of 2008 and a nine per cent sequential increase over the second quarter of 2009‘s revenue of US $60.3 million.
“Driving these revenue increases were 41 per cent year-over-year and 18 per cent sequential increases in the Company’s wireless revenue fueled by significant growth in the Company’s existing U.S. wireless business.
“The growth in wireless revenue more than offset the year-over-year and sequential decreases in international long distance revenue from the Company’s Guyana operations.”
Local telephone and data revenue increased nine per cent to US$13.9 million compared to US$12.8 million in 2008.
“Local telephone and data revenue generated by our Guyana operations increased eight per cent to US$8.1 million compared to US$7.5 million in 2008, while access lines increased six per cent to 144,000 from 136,000.”
For the nine months ended September 30, 2009, ATN’s revenue was $182.2million, up 20 per cent from the $152.0 million reported for the same period in 2008. Operating income increased $3.9 million, or seven per cent, to US$58.0 million for the nine months ended September 30, 2009 from US$54.1 million for the same period in 2008, in part due to the inclusion of US$4.7 million of operating losses at two early stage businesses acquired during the third quarter of 2008, for which results were not included in the first half of 2008.
Atlantic Tele-Network, Inc. is a telecommunications company operating digital wireless, wireline and both terrestrial and submarine fiber optic networks in North America and the Caribbean.
Its principal subsidiaries include Commnet Wireless, LLC, which provides voice and data wireless roaming services for U.S. and international carriers in rural areas throughout the United States; Guyana Telephone and Telegraph Company, Ltd., which is the national telephone service provider for all local, long-distance and international services in Guyana, as well as a wireless service provider; Bermuda Digital Communications, Ltd., which is the leading provider of wireless voice and data services in Bermuda operating as Cellular One, and also an early-stage wireless provider in Turks and Caicos through its IslandCom subsidiary; Sovernet, Inc., which provides wireline voice and data services to businesses and homes in New England and high capacity communications network transport services in New York State through its ION subsidiary; and Choice Communications, LLC, which provides wireless broadband services in the U.S. Virgin Islands.
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