REGINA – While operating revenues came in 5% higher at $1.18 billion in 2012 , net income dropped by 16% to $129.6 million, the Crown Corporation reported Monday.
However, that net income was still higher than budgeted, driven by the growth in wireless revenues thanks to Saskatchewan residents quick adoption of smartphones, said the company. Its Max Entertainment Services revenues were also above budget due to greater than expected customer growth. The drop in 2012 income compared to 2011 was due to increased spending on network upgrades.
"In 2012, we successfully responded to the challenges of a rapidly changing industry with fierce competition through our investments in wireless and broadband technologies and by providing customers, employees, partners and suppliers with the products and services that connect them to their world." said Ron Styles, SaskTel president and CEO in the company’s release. "We also recognize that we must not only grow our top-line revenues but ensure that we are simplifying our business and driving productivity efficiencies across the organization to drive overall sustainability for SaskTel."
Wireless revenues increased by9.6% to $454.2 million in 2012 while total wireless subscriptions increased to 607,659 at year end, up 13,254 from 2011. Average revenue per wireless subscriber was $62.99. At year end, SaskTel had 353,490 data capable wireless devices, up 30.6% from 2011.
Max IPTV revenues increased to $125.6 million in 2012, up $14.7 million from 2011. At year end there were 97,262 Max customers compared to 93,960 at the end of 2011. Internet and data services revenues increased to $142.4 million in 2012, up $6.5 million from 2011. At year end there were 250,068 Internet and data accesses, up from 246,472 in 2011.
SaskTel's capital spending for the year was $319.8 million, up $54.1 million from 2011. The company “continues to focus on growing both the capacity and coverage of our wireless and wireline networks for the people of Saskatchewan. In 2012, SaskTel invested over $137 million to improve its wireline network infrastructure to handle new growth and service enhancements,” reads the release.
“This investment also included spending $49.8 million to start its fibre to the premises (FTTP) project, which will deliver a fibre optic network to both businesses and consumers in our nine largest urban centres by 2017.”
SaskTel also spent $86 million to increase coverage and improve services on its 4G wireless network.
