Several companies announced their financial results on Monday, April 22nd including Saskatchewan-based telecom carrier SaskTel. The company has made it known that it has posted a net income of $1.18 billion in 2012 that was 5 percent more than what SaskTel managed to achieve back in 2011. SaskTel was able to achieve this 5 percent growth in its net income due to the rapid increase in wireless revenues, as people in the region swiftly adopted smartphones. To have an exact idea about the financial earnings of SaskTel see the official report of the carrier below:
“SaskTel today reported strong 2012 net income of $129.6 million and operating revenues of $1,182.4 million, up $56.6 million (5.0%) from 2011. The higher than budgeted net income was driven by the rapid growth in wireless revenues resulting from Saskatchewan residents replacing their old phones with new smartphones. Max™ Entertainment Services revenues were also above budget due to greater than expected customer growth.
“Once again in 2012, SaskTel had a very successful year delivering high quality, accessible and affordable services to residents throughout Saskatchewan while investing in the development of new products and services such as 4G LTE,” said Don McMorris, Minister Responsible for SaskTel. “In the year to come, SaskTel will build on its successes and invest to ensure that the company is meeting the changing needs of its customers across Saskatchewan.”
“In 2012, we successfully responded to the challenges of a rapidly changing industry with fierce competition through our investments in wireless and broadband technologies and by providing customers, employees, partners and suppliers with the products and services that connect them to their world.” said Ron Styles, SaskTel President and CEO. “We also recognize that we must not only grow our top-line revenues but ensure that we are simplifying our business and driving productivity efficiencies across the organization to drive overall sustainability for SaskTel.”
Financial Highlights
SaskTel 2012 Net Income – $129.6 million
SaskTel 2012 Revenues – $1,182.4 million
EBITDA Margin – 26.9%
Return on Equity – 16.8%
Dividend of $84.3 million declared to Crown Investments Corporation (CIC) in 2012
Industry-leading debt ratio of 42.0%
Operating Highlights
Wireless Services
Wireless revenues increased by $39.8 million (9.6%) to $454.2 million in 2012.
Total wireless accesses increased to 607,659 at year end, up 13,254 from 2011
Average revenue per wireless subscriber was $62.99
At year end, SaskTel had 353,490 data capable wireless devices, up 30.6% from 2011.
Max Entertainment Services
Max revenues increased to $125.6 million in 2012, up $14.7 million from 2011.
At year end there were 97,262 Max customers compared to 93,960 at the end of 2011.
Internet and Data Services
Internet and data services revenues increased to $142.4 million in 2012, up $6.5 million from 2011.
At year end there were 250,068 Internet and data accesses, up from 246,472 in 2011.
Advertising and Directory Services
Advertising and directory revenues were $43.4 million in 2012. SaskTel continues to offer both traditional print, as well as online digital products and services.
Security Monitoring Services
Security monitoring revenues grew to $19.9 million in 2012.
Software Solutions and Consulting
Software Solutions and Consulting expenditures fell to $7.9 million primarily due to fewer consulting contracts in 2012.
Capital Spending
SaskTel’s Capital spending for the year was $319.8 million, up $54.1 million from 2011. SaskTel continues to focus on growing both the capacity and coverage of our wireless and wireline networks for the people of Saskatchewan. In 2012, SaskTel invested over $137.0 million to improve its wireline network infrastructure to handle new growth and service enhancements.
This investment also included spending $49.8 million to start its fibre to the premises (FTTP) project, which will deliver a fibre optic network to both businesses and consumers in our nine largest urban centres by 2017.
SaskTel also invested more than $86.0 million to increase coverage and improve services on its 4G wireless network and to prepare SaskTel’s infrastructure to allow adoption of the new long term evolution (4G LTE) wireless technology to be launched in 2013.
Corporate and Business Highlights
Significant investments on infrastructure in 2012 included:
$45.7 million to provide for network growth and enhancements.
Investment in intangible assets included:
$14.2 million on a new Customer Relationship Management system, which will consolidate customer information and allow seamless provisioning of services.
$6.8 million on a Field Services Efficiency system, which is an automated system that will improve the efficiency and responsiveness of our dispatch of field technicians.
$6.5 million to modernize our asset management system, Martens.
$5.2 on million on Customer Self-Serve to enhance the customer experience when accessing SaskTel products and services.
Technological Firsts:
First converged core in Canada for two different communications networks – 4G and LTE
First residential High Speed Internet offering of 260 Mbps on our fibre optics network – infiNET
First company in Canada to offer its customers LTE roaming
Awards and Recognition – 2012:
Canada’s Top 100 Employers – 13th consecutive year
Canada’s Greenest Employers
Canada’s Best Diversity Employers
J.D. Power & Associates – SaskTel was ranked number one in overall customer satisfaction in the full service category for all of the major carriers
Recognized for Aboriginal Employment Practices by Aboriginal Government Employees Network (AGEN)
SaskTel We See You program awarded Global Best Award.”
At this point in time, SaskTel holds 73 percent wireless market share in the area and it has also offered iPhone 5 to its customers. The Saskatchewanian company has also launched its 4G network just two months ago in January, but SaskTel criticised the rules of the forthcoming wireless spectrum by saying that are ‘unfair’.
Source: iPhoneinCanada, SaskTel
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