Bermuda-based KeyTech Holding reported operating profit of USD8 million for the six months ended 30 September 2016, reversing a loss of USD1.7 million in the corresponding period last year, as revenue rose to USD61.1 million, up from USD46.0 million. Operating expenses rose to USD53.1 million, up from USD47.7 million in the prior-year period. KeyTech, which owns telecoms interests in Bermuda and the Cayman Islands, those formerly known as Logic Communications, CellOne and Bermuda CableVision, attributed the improvement to its transaction with US firm ATN International, which took a 51% interest in KeyTech earlier this year, The Royal Gazette reports. The ATN deal resulted in the company acquiring full ownership of Bermuda Digital Communications, or CellOne, and USD41.6 million in cash. ‘As a result of this transaction, the company has recorded an estimated USD22 million gain on the resulting full consolidation of the company’s wireless business, measured at a provisional amount based on management’s preliminary estimate of fair value,’ KeyTech stated.
The telecommunications group reported that strong subscriber growth in Bermuda and Cayman helped to boost data revenues by USD1.9 million, although sales derived from TV services dipped by USD1.6 million, which it said was indicative of so-called ‘cord cutting’ by subscribers, opting for online video content over traditional TV content. Nevertheless, Frank Amaral, CEO of KeyTech, commented: ‘Our six months results already start to highlight for shareholders the benefits we expect to see from our strategic transaction with ATN … The operational efficiencies and stronger balance sheet gained from the transaction put us in a great position to invest in and expand our networks to improve value both for customers and shareholders as a streamlined fixed and mobile provider … To highlight our new position and strategy heading into the next year, we launched a new, unified brand for all of businesses operating under the ‘One Communications’ name in November. We look forward to putting the new investment in the company to work revamping our operations under this new name to better serve our residential and business clients.’
KeyTech will be changing its reporting year end from 31 March to December 31, effective 31 December 2016, the statement added.