Published: Friday June 27, 2008
Telecommunications Services of T&T (TSTT) has recorded a $160 million after-tax profit for the financial year ended March 31, 2008.
Net revenues amounted to $2,958.3 million and profit after tax was $159.9 million.
This compares to a loss of $239.2 million in the previous financial year.
Rakesh Goswami, chief financial officer of TSTT, yesterday described the results as $400 million turnaround.
The company said that TSTT's profits and improvements made to its internal controls and debt collections policy had increased its asset base by seven per cent or $325 million during the financial year.
Investment in capital projects exceeded $500 million and the profit represented a return on capital employed at six per cent.
In a release issued yesterday, TSTT identified five factors which played a critical role in its profitability.
- Reduced bad debt and fraud as a result of improved internal controls related to revenue leakage and improved debt collection.
- Reduced marketing costs as a result of a levelling off in the growth cycle of the mobile market.
- Reduced cable theft/ vandalism costs as a result of increased public awareness as well as more efficient cable laying techniques and security surveillance.
- Lower impairment costs as a result of improved management review processes of the useful life of assets in accordance with international accounting standards.
- Finalisation of the interconnection agreement relating to the mobile line of business
Chief executive Roberto Peon said that the numbers speak for themselves. He said that the company was trimming its excess and focusing on improving its process.
He said that the re-organisation of the company management into lines of business allowed for operational efficiency and cost controls.
“We’ve slashed costs and focused on where we want investment,” he said.
He noted that in the financial year, TSTT faced competitor for its landline service and had seen revenue from international calls cut sharply.
But he said TSTT is looking forward to capitalising on the cable television licence which was awarded two years ago. The company has created a new line of business and former mobile boss, Gary Barrow, has been named executive vice president, IPTV and content.
“The next 12 months will see the company placing emphasis on: deepening the level of integration among new technologies deployed,continuing the fiber-centric modernisation of the fixed line network, upgrading and expanding TSTT's wireless infrastructure and ensuring that employee’s skillsets are augumented to complement the needs of the organisation. These actions will contribute to ensuring that the turnaround of TSTT’s performance during this year becomes sustainable for the foreseeable future,” said chairman Sam Martin in his report.
Source: Trinidad Guardian Newspapers