Saskatchewan

SaskTel revenues rise by $26.7M but no talk of potential sale, minister says

Growth in maxTV, internet and data helped increase SaskTel's revenues in 2015-16 to the tune of $26.7 million. The company released its annual report on Wednesday.

MaxTV, internet and data revenues helped push financial growth

SaskTel says it's pleased with rising revenues despite many challenges in the market. (Neil Cochrane/CBC)

Growth in maxTV, internet and data helped increase SaskTel's revenues in 2015-16 fiscal year.

It rose 2.2 per cent to the tune of $26.7 million. The figures are contained in the company's annual report released on Wednesday.

Overall net income of the provincially-owned phone company is $126.7 million, bolstered by that 2.2 per cent increase in revenues. The company also reported a 0.6 per cent decline in operating expenses.

"As changes to customer demands, technology, competition, data traffic and regulations continue their rapid advance, we are extremely pleased to report a higher than anticipated net income," said SaskTel CEO Ron Styles.

SaskTel exceeded its net income target by $20.9 million.

"If we are anything less than being the best in the market here in Saskatchewan, we are going to have problems," Styles said.

SaskTel President and CEO Ron Styles said his company has adpated to rapid changes in the telecom industry. (CBC)

Government awaiting internal review

SaskTel's recent risk assessment was again a topic of conversation Wednesday.

The report released in June showed the potential sale of MTS to Bell could cut into SaskTel's net income. The minister responsible for SaskTel, Jim Reiter, said he has had no conversations about a sale of the company.

"If we did get an unsolicited offer tomorrow we don't have a mandate to accept that. We also don't really feel like if it was a lucrative offer, we really don't have a mandate to reject that," said Reiter.

The province has asked Styles and the SaskTel board to conduct a review of the risk analysis and share it at their next meeting in late August or early September.

"We're optimistic about the future but it's a rapidly changing industry and it's important to continue to look forward to try and determine what that future will be," said Reiter.

now