“KeyTech is firmly committed to Logic Cayman, where we have invested and continue to invest in a fiber rollout strategy. In November of this year, 2012, Logic Cayman was the first provider of IPTV and the first to offer a triple play service in Grand Cayman.

The 2012 6-month consolidated profits are actually up by $1.15 million when normalized for one time occurrences in 2011. The drop in revenues is primarily due to declines in traditional landline revenue and Bermuda’s challenging economic conditions. The decline in voice revenue is no surprise as it is a worldwide occurrence.

KeyTech is continuing to invest in the network infrastructure of both jurisdictions (Bermuda and Cayman) to meet consumers demand for resilient high speed and quality data products. In Cayman we are investing for growth and we are focused on serving both the corporate customer and the residential markets. ”

This follows the report issued last week showing a big loss:

‘Stagnant Economy’ Impacts KeyTech Revenue

KeyTech’s consolidated operating profit for the six-month period ending September 30th 2012 was $6,816,069, while operating profit for the same period last year was $9,133,389.

Included in the results for the 6 months ended September 30th 2011, is a gain on the M3/ CellOne merger of $10,516,501, a writedown of assets associated with the exit of the hardware business of $4,098,930 and a goodwill and intangible asset impairment of $2,953,641. Excluding these one-time charges, prior year operating profit was $5,669,459.

A company spokesperson said, “The stagnant economy continues to negatively impact revenues; however, the group is focused on delivering long term results to solidify our future. Our networks must have the ability to offer better performance for the ever increasing need for high speed broadband.

“In April of this year BTC completed the implementation of its Metro Ethernet network (PRISM) and now offers new and advanced products to corporate customers. Over the next 12 months, BTC will work meticulously on improving the residential network.

“Logic Cayman is steadily deploying its fiber based infrastructure to compete in both the residential and corporate market which enables Logic to offer triple play services – voice, data and IPTV.

“Operating revenues for the period were $39,750,121 compared to $43,973,778 for the six month period ending September 30th 2011, a decrease of $4,223,657. Of this decrease, $1,422,080 relates to reduced use of wireline voice services, and $629,197 from reduced directory sales.

“Other revenues decreased $896,547 due to declines in colocation and building rents. Hardware and software revenues declined $631,533, which is directly related to exiting that line of business.

“Since the advent of cellular and with the increase of data driven social media communications for customers, service providers will continue to see declines in voice revenues. A trend that is sure to prevail over traditional ‘dial’ tone devices.

“Total expenses for the period were $36,632,122 compared to $44,369,136 for the same period last year, a decrease of $7,737,014 reflecting continued efforts to reduce expenses in the difficult economic environment that is affecting revenues.

“Of this decline, $2,253,859 reflects reduced salaries expenses and $1,414,324 is the result of reduced operations and maintenance expenses. There are no staff termination costs included in the expenses for the period, compared to $519,385 for the same period last year. Depreciation and amortization expense decreased $4,137,741 from 2011.

“Over the past six months, we have focused on enhancing our position by improving our networks while staying engaged with customers. The group remains poised with respect to the economic climate; therefore we continue our efforts to improve on efficiencies within our operations.

“Share of profits of associated companies for the six month period were $3,737,811 compared to $1,980,677 in the prior period, with CellOne contributing profits of $2,342,263 ($487,719 in 2011), Bermuda CableVision contributing profits of $1,695,053 ($1,592,744 in 2011), and QuoVadis a loss of $299,505 ($99,786 loss in 2011).

“Total comprehensive income for the year was $5,065,516 compared to $9,193,080 for the prior year. Changes in the defined benefit pension plan included in other comprehensive income were an expense of $1,832,236 in the six months ended September 30th 2012, with no comparable expense in the same period of the prior year.”

During the six month period, KeyTech invested $7,761,787 in capital assets compared to $4,801,646 during the prior period.

Basic and fully diluted earnings per share for the six month period ended September 30th 2012 were $0.35 compared to $0.63 for the same period last year. Investment income and realized gains and losses from marketable securities for the period were $9,643 compared to $12,621 for the prior period.

The Company declared a dividend of $0.12 per share for the quarters ending June 30th 2012 and September 30th 2012.

For more on this story go to:

http://tunuptv.com/2012/12/05/stagnant-economy-impacts-keytech-revenue/