Jan 2008 Financial News

TSTT records $124m profit

Jan 22, 2008

TELECOMMUNICATIONS provider TSTT revealed yesterday that it's back in the black recording net profit after tax of $124 million for the six-month period ended September 2007.

The telephone company came under heavy criticism recently following its massive $239 million loss at the end of the March 31, 2007 financial year, its first ever loss.

TSTT's recent record loss was blamed on the liberalisation of the local telecommunications market, which saw the entry of cellular telephone provider Digicel.

In a statement yesterday TSTT said, "According to un-audited results for the period April 1 to September 30, 2007, the first six months of TSTT's current financial year saw net revenue increase to $1,098 million, 14 per cent higher than the $963 million reported for the comparative period in 2006."

TSTT added: "The company's net profit after tax also increased to $124 million or $190 million more than the loss after tax of $66 million reported for the six-month period ended September, 2006."

The company attributed its success in "turning the ship around" to undertaking a radical review of its operations with the intention of returning the company to profitability.

"Several major initiatives have been launched during the current financial year. These initiatives include the expansion and enhancement of the mobile network to remain the number one network in Trinidad and Tobago", the company added.

As part of its restructuring process TSTT chief executive officer Roberto Peon said last week that more than 100 employees will lose their jobs as the company implements cost-cutting measures.

However, Peon made it clear that TSTT did not make the decision to cut employees to compensate for the loss.

On the latest un-audited results Peon said, "I am pleased with the financial progress for the first six months of this (financial) year and particularly proud of how our staff has responded to the challenges."

He added, "TSTT is committed to take the necessary actions to ensure that we remain the telecommunications service provider of choice and a key enabler in Trinidad and Tobago realisation of Vision 2020."

Source:
The Trinidad Express
Driselle Ramjohn dramjohn@trinidadexpress.com
Tuesday, January 22nd 2008

http://www.trinidadexpress.com/index.pl/article_business?id=161267398