Jul 2016 Financial News

TSTT posts $316m loss under new chairman

Jul 28, 2016

Port of Spain: MAJORITY State-owned telecoms provider TSTT has posted an after-tax loss of $316 million for its fiscal year ended March 31, 2016, chairman Emile Elias said in a two-page news advertisement yesterday.

The loss means a 345 per cent deterioration in the total comprehensive profit for the company for its first year under new chairman Elias and chief executive officer Ronald Walcott.
The Telecommunications Servi­ces of Trinidad and Tobago (TSTT) had a total comprehensive profit of $166.6 million for the year ended March 31, 2015.

Last year, TSTT accoun­ted for the largest movement in National Enterpri­ses Ltd's (NEL) fi­nan­cial performance.
The company's pro­fit was a recovery from the loss of $226.1 million in 2014.

The ageing of equipment was blamed, in part, for the poor performance.

TSTT cancelled media interviews on Tuesday, the day before the release of the results, and instead, issued a statement, part of which read: “...Walcott noted that because TSTT will be investing significantly ($3.7 billion) over the next two years, especially in new broadband technology, the existing broadband technology had to be fully reviewed. The results of the interrogation mandated the need to accelerate depreciation on some assets and absorb an impairment on others since the assets involved faced shortened revenue-generating life spans and/or impending obsolescence.

“The impairment charge amoun­ted to $375 million and the accelerated depreciation was $259 million. These $575 million charges eroded the otherwise normal profitable operations, resulting in an after-tax loss of $316 million.”
The former telecommunications monopoly, which still enjoys the highest number of fixed-line and mobile customers, said it “will roll out an augmented fibre-centric residential solution that will pass over 200,000 homes”.

Digicel Play and Massy Communications now offer fibre solutions to homes and businesses seeking fixed-line, Internet and high-definition (HD) television.

TSTT said it is targeting 20 per cent revenue growth over the next five years.

Source:
By Aleem Khan
Trinidad Express
Wednesday July 27, 2017, 11:30 pm AST

http://www.trinidadexpress.com/20160727/news/tstt-posts-316m-loss-under-new-chairman