SaskTel’s net income came in higher than expected, despite a drop in revenue.
For the fiscal year, SaskTel reported an income of $104.4 million, down by over 20% from the previous year but higher than the expected $100 million.
In total SaskTel saw its revenue come in at $1.301 billion, a decrease from $1.324 billion, while it spent $1.17 billion.
“While revenue decreased by $16.8 million due to ongoing declines in legacy wireline services and decreased year-over-year demand for customer premise equipment,” SaskTel said in a media release.
“This decline is partially offset by growth in fixed broadband and data revenues from a growing subscriber base and increased revenue per customer as customers opt for higher internet speeds and more services delivered on SaskTel’s fibre optic network. The decline was also offset by increased wireless revenues, which resulted from a growing wireless subscriber base.”
SaskTel declared dividends of $94.0 million to Crown Investments Corporation during the fiscal year ending March 31.
NDP MLA Trent Wotherspoon, the critic for SaskTel, said that instead of issuing a dividend, the money should be reinvestment into SaskTel to better connectivity in northern and rural communities.
“Cellular and internet services are essential for safety, community cohesion and economic prosperity in 2022,” said Wotherspoon. “Yet the Sask. Party is pulling money from SaskTel that they should be investing in rural and northern connectivity to pay for their government’s fiscal mismanagement.”
