Released on April 25, 2005
SaskTel today released solid 2004 financial results, highlighted by a net income of $94.5 million and operating revenues of $932 million despite operating in an increasingly competitive communications market with continued regulatory challenges.
"SaskTel is committed to maintaining a financially sound revenue base that allows the company to return benefits to its customers and the province," Minister responsible for SaskTel Maynard Sonntag said. "SaskTel's solid financial results are a testament to a successful growth strategy that focuses on increasing revenues and profits."
"With today's competitive communications market, we are extremely pleased with the financial success achieved in 2004," SaskTel President and CEO Robert Watson said. "SaskTel will need to remain committed to customer loyalty, while focusing on operational efficiency and growth to remain Saskatchewan's leading communications company."
"In addition to Max and VoIP, SaskTel's growth strategy will see further expansion of our wireless services, prudent investment, and the export of SaskTel products and services outside Saskatchewan," Watson added.
Financial and operating highlights for SaskTel in 2004 include:
• SaskTel has grown its revenues to $932.4 million in 2004, from $574.5 million in 1990, despite a reduction in long distance revenues of more than $250 million per year. In the early 1990s, only 7 per cent of the Corporation's revenues directly resulted from its growth strategy, today approximately 57 per cent result from its growth strategy.
• SaskTel's external investment program is increasing in value, fulfilling its goal for the future. Today, the estimated value of SaskTel's external investment portfolio is $251 million to $316 million compared to the $152 million net amount invested.
• Max™ Interactive Services grew to over 25,000 customers and SaskTel expanded the movie offerings of Max Front Row™ video-on-demand service.
• Under phase II of CommunityNet, SaskTel will be expanding high speed internet service in Saskatchewan to 71 additional communities in Saskatchewan reaching 86 per cent of the population within the next three years, serving virtually every community of 200 people or more, and every community of 100 people or more with a school.
• SaskTel Mobility's capital expenditures for 2004 totaled $28.8 million with the majority invested in network expansion and improvement. SaskTel Mobility added 41 new cellular sites, seven of them providing cellular service to areas with no previous cellular coverage. At year end, SaskTel Mobility's cellular network spanned approximately 94 per cent of the Saskatchewan population.
• In 2004, SaskTel paid over $21.2 million in commissions to its dealer network in Saskatchewan consisting of 102 SaskTel Mobility dealers, 67 SaskTel High Speed Internet service dealers, 32 Max dealers and 13 SecurTek dealers.
• Further example of SaskTel's commitment to Saskatchewan is the investment in excess of $2.5 billion in infrastructure in Saskatchewan in the last 15 years. In 2004, a total of $123.1 million in capital spending, reflecting a continued focus on growth and diversification initiatives such as Max™ Interactive services and wireless services.
• Dividend of $88.0 million to Crown Investments Corporation (CIC) in 2004 and a total of $883 million in the last 15 years.
• In 2004, SaskTel exceeded its operational efficiency target of $18.7 million and achieved $20 million in realized savings with various cost reduction initiatives including an Early Retirement Program (ERP). SaskTel also introduced a new cost reduction program with the goal of eliminating $87 million of annualized costs by the end of 2007.
• Debt ratio of 25.7 per cent, down from 72.2 per cent as of December 31st, 1990.
• For fifth straight year, SaskTel was recognized as one of "Canada's Top 100 Employers" by MediaCorp Canada Inc.
About SaskTel
SaskTel employs over 3,800 people in over 50 Saskatchewan communities and is the leading full service communications company in Saskatchewan. It offers complete wireline, wireless, internet, entertainment and e-business solutions over a state-of-the-art, digital network. SaskTel maintains investments in companies that provide a variety of products and services, and partners with more than 140 Saskatchewan businesses. In 2004, SaskTel donated $2.6 million to more than 1,600 not-for-profit organizations, and spent more than $271 million on materials and services from over 3,900 Saskatchewan suppliers. Visit SaskTel at www.sasktel.com.
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For More Information, Contact:
Michelle Englot
SaskTel
Regina
Phone: (306) 777-4476 |
