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Ag CEO: TSTT in line for $100m profit
Just months after TSTT recorded a loss of more than $500 million for the financial year ended March 2014, acting CEO George Hill says is confident the company can earn profits of more than $100 million by the end of the financial year
Hill announced a recovery in the telecommunication company’s bottom line during a recent breakfast meeting with business and technology journalists at TSTT’s Edward Street office. He said at the end of the first quarter for the current financial year, the company was on target with its five-year strategic plan for financial and operational milestones.
The strategic plan identified infrastructure, automation and organisation transformation as key pillars for moving the company towards strong profitability through targeted growth and operational efficiencies. “When we look at what we are trying to achieve based on our strategic plan, we took a decision to absorb the exceptional one-off costs in the first year which resulted in the loss, with the understanding that if we stayed on plan, we will begin to see tangible operational and financial improvements from year two of the plan,” Hill said.
He said unaudited results of TSTT’s first quarter performance show that revenue growth and cost reductions are in line with the plan. The acting CEO said an integral part of the company’s organisational transformation is the voluntary separation programme. “It was a necessary one-time cost which will streamline the company, resulting in greater efficiency and profits in the future,” said Hill, adding that the company treated the separation of its employees as more than just a matter of taking a cheque and leaving.
“The separation of someone from an institution must be treated with dignity and respect. Some of the employees leaving have anywhere between 2- 40 years of service, so each month, we host a farewell reception for staff leaving in that month to thank them, because we recognise the importance of their service and the things they have done for the company.”
He said TSTT has been able to follow through with its commitment to improving its network infrastructure which includes changing out parts of its copper plant to fibre optics to maximise the utility of the company’s core IP network. Major fibre optic and wireless broadband projects have been put in motion.
Underserved communities will be able to receive wireless broadband access using LTE (Long-Term Evolution) Technology. Wireless broadband in communities such as in Sangre Chiquito, Rancho Quemado, Cheeyou and Golden Lane allows the Company to better cater for the needs of customers now and in the future. Several projects are being rolled out as the year progresses and Hill explained that the plan includes raising $1.5 billion in financing.
“The strength of the company’s balance sheet was evident from the number of companies that expressed serious interest in brokering this financing which we hope to conclude in August,” he said.