AYLMER – Thanks to an acquisition completed earlier this year, Amtelecom Income Fund posted revenue gains in the third quarter of 2006, ended September 30th.
Amtelecom Income Fund owns and operates cable TV, telco and Internet operator Amtelecom.
For the third quarter of 2006, the Fund generated revenues of $7.9 million, earnings before financing costs, income taxes and amortization (EBITDA) of $3.5 million and net earnings of $400,000. This compares to revenues of $6.1 million, EBITDA of $3 million and net earnings of $1.1 million in the third quarter of 2005.
For the nine month period ending September 30, 2006, the Fund generated total revenues of $23 million, EBITDA of $10.5 million and net earnings of $2.6 million, compared to ’05 revenue of $17.8 million, EBITDA of $8.6 million and net earnings of $3.4 million.
"We have realized significant synergies from the newly acquired People’s Tel and we are pleased with the results thus far," said CEO Michael Andrews. "Our EBITDA growth of $1.9 million, a 22% improvement over the previous year, clearly demonstrates the strategic fit of this acquisition.
"As well, we are now beginning to see the benefits of indirect synergies from the People’s acquisition such as the recently completed interconnection of two of our standalone cable television systems that were in close proximity to People’s. This has allowed us to accelerate the introduction of high speed Internet into those previously unserved communities much sooner and more economically than we would have otherwise been able to do."
At the end of September, Amtelecom had 26,968 telco customers (a 24% increase over September 2005); 8,804 cable customers (flat); 10,302 high speed Internet customers (an 81% increase) and 3,121 dial-up customers (a 144% jump).
