SaskTel Reports 2007 Net Income of $84.1 Million
April 23, 2008
SaskTel today released its 2007 financial results, highlighted by a net income of $84.1 million and operating revenues exceeding $1 billion for the second consecutive year.
“SaskTel’s century-long legacy of delivering solid financial results is a testament to a company with a long-term commitment of providing world-class products and services to its customers and the communities its serves,” said Ken Cheveldayoff, Minister of Crown Corporations. “SaskTel leads the way in Canada in bringing digital cellular and high speed internet service to rural areas. As of the end of 2007, more than 95% of Saskatchewan’s population had access to digital cellular service and over 85% had access to high speed internet.”
“SaskTel will face many challenges as we move into our second century and we’ve identified three key areas that need to be addressed going forward – productivity, strategies for growth and industry transformation,” said Robert Watson, SaskTel President and CEO. “With a truly convergent industry, competition will continue to increase and traditional revenues will decline further. Ensuring our future viability will be a matter of developing strategies to capture new growth revenues while retaining our existing revenue base and improving our overall productivity. We are confident that with the hard work, creativity and intelligence of our employees, management and Board of Directors, SaskTel will thrive well beyond our Centennial.”
Financial and operating highlights for SaskTel in 2007 include:
- Net Income of $84.1 million, up $11.6 million from 2006.
- SaskTel reached $1,067.4 million in revenues in 2007, an increase of $57.8 million over 2006. Strong customer growth in cellular services, Max™ Entertainment services and internet services contributed.
- Max™ Entertainment Services revenues increased by $13.4 million from 2006 and grew to 62,244 customers. In 2007, SaskTel launched Digital Television Recorder (DTVR) and now offers 28 HD channels.
- Wireless revenues increased significantly to $301.3 million in 2007, an increase of 15.8% over 2006. Total wireless accesses increased by 49,542 for a total of 452,218. The average revenue per cellular subscriber increased to $57.90, up $2.40 from 2006. SaskTel invested $27 million to enhance and expand the wireless network including 26 new cellular sites. As well as improving coverage, SaskTel was the first company in Canada to launch Voice Mail to Text service.
- SaskTel now reaches over 85% of the population with its high speed internet service. At year end there were 206,233 internet accesses, up 7% from 2006.
- Capital expenditures were $172.2 million in 2007, down $55.8 million from 2006. Since 1987, SaskTel has invested over $3.1 billion in infrastructure in Saskatchewan.
- “Other revenues” primarily from growth initiatives increased to $149.8 million in 2007, an increase of 10.5%. This increase was due to increased sales of customer premise equipment, and to increased revenues from DirectWest Corporation, SecurTek Monitoring Solutions Inc. and Hospitality Network Canada Inc.
- Dividend of $30 million declared to Crown Investments Corporation (CIC) in 2007 for a total of over $1 billion paid in the last 18 years.
- Since 2000, SaskTel has been focused on operational efficiency and has removed approximately $135 million in annual operating costs. Initiatives such as the Early Retirement Program (ERP) and other cost containment measures such as process improvements contributed to the savings realized.
- Debt ratio of 27.7%, down from 72.2% as of December 31, 1990.
- Through SaskTel TelCare, the employees’ benevolent fund, $260,526 was donated, which is matched 50% by SaskTel for a total of $390,790 to 93 Saskatchewan charities.
- In 2007, we continued to advance our environmental strategy, “Eco(log)ical”, by completing an environmental review of all operations, including subsidiaries, performing a waste audit, approving a Greenhouse Gas Management Plan, and launching a province-wide florescent light tube recycle program.
- In 2007, SaskTel met most of our Representative Workforce targets with 25.5% female representation in management, professional or technical positions, 34 aboriginal permanent hires, 11 permanent hires of people with disabilities and 13 visible minority hires.
- At the end of 2007, our Saskatchewan dealer network included more than 130 dealer locations and paid over $29 million in commissions to our wireless, high speed, and Max dealers.
- SaskTel also purchased goods and service from more than 4,600 Saskatchewan suppliers contributing $369 million to the Saskatchewan economy.
- Through our Community Investment Program, SaskTel contributed over $2.2 million to over 1,300 non-profit and charitable organizations in Saskatchewan.
- In 2007, we received a number of employer awards being recognized as:
- one of “Canada’s Top 100 Employers” by MediaCorp Canada Inc. for eighth consecutive year, SaskTel was recognized as one of “Canada’s Top 100 Employers” by MediaCorp Canada Inc.
- One of Saskatchewan’s Top 10 Employers
- One of the top 50 companies in Saskatchewan
- As well, SaskTel ranked 9th in the American Society for Training and Development (ASTD) Best award for demonstrating enterprise-wide achievement for employee learning.
For more information, please contact:
Michelle Englot , SaskTel Corporate Affairs
(306) 777-4476
michelle.englot@sasktel.sk.ca
