GT&T nets US$8.3M in first quarter
32% increase in cellular subscribers
Stabroek News
April 30, 2004
The Guyana Telephone & Telegraph Company (GT&T) continues to be a cash machine for Atlantic TeleNetwork (ATN), raking in 94% of ATN's revenues in the first quarter of this year to carry its net income position to US$3.1M, compared with US$2.8M for the same period last year.
The other operations of ATN contributed a mere six per cent to its income before taxes and minority interest of US$8.8M.
GT&T's net income before taxes for the first quarter was US$8.3M, compared with US$7.3M at March 31, 2003, an increase of 13%. Total telephone operating revenues for the firm were US$19.3M compared with US$18.1M for the first quarter in 2003, an increase of US$1.2M. Telephone operating expenses increased by US$329,000 in the comparative period or by 3% and 11% of this was because of the large increase in cellular subscribers and the small increase in land line subscribers. However, the increased lines and handsets saw an increase in GT&T's international long distance traffic and revenues. International outbound expenses for GT&T fell by 25% as a result of lowered settlement rates.
A statement from ATN says the increase in revenues for GT&T was because of a 16% (US$1.5M) increase in international long distance revenues as a result of increased volume traffic at GT&T. However, local exchange service revenues fell by US$231,000 to reach US$7.8M, attributable to the depreciation in the Guyana dollar as ATN accounts are in US currency. In Guyana dollars, the local service revenues increased by one per cent to reach $1.56B. However, the depreciation realised a gain for GT&T as it decreased the value of its net liabilities denominated in Guyana dollars.
GT&T's cellular subscribers, which numbered 92,756 at the end of March last year, grew by 32% to reach 122,862 at the end of March 2004. The growth was only 3.5% when compared with the end of the December subscriber base of 118,658.
The number of land lines recorded a six per cent growth at 93,520 when compared with March 2003 and a marginal 0.9% increase when compared with December, 2003.
"Our GT&T subsidiary had another excellent quarter. International long distance traffic continued its robust growth thanks to the substantial increase in handsets and lines in service over the past twelve months. On the other hand, a decline in the value of the Guyana dollar against the US dollar limited the revenue growth for GT&T's local exchange operations. This currency movement also led to a surge in other income, a major factor in our increased earnings for the first quarter, an effect that may not continue in future quarters," ATN's chairman, Cornelius Prior said.
He noted that the results of the other operations were not as favourable, despite continued subscriber growth at Choice Communications in the US Virgin Island.
Choice Communications and Atlantic TeleCentre in Guyana reported losses of US$1.2M combined for the first quarter this year, an increase of US$394,000 over the comparable period for 2003. The increase in loss was attributed to increase in expenses at choice.
"Management was able to cut call centre expenses at ATC compared to the comparable quarter last year..." the ATN statement said.