LIME rakes in over $8 million in challenging fiscal year

BASSETERRE, St. Kitts – AFTER a surprise rebranding of the company and facing surging financial and economic uncertainties, LIME (formerly Cable & Wireless) has announced an EC $8.6 million profit for the year, a marked reduction from the expected EC$ 14.8 million.

This announcement was made yesterday (Aug. 6) at the company’s Annual General Meeting (AGM), held at the St. Kitts Marriott Resort. The AGM brought together hundreds of shareholders and executive members from both St. Kitts and Nevis to discuss changes over the last fiscal year and table recommendations for the best way forward. 

According to the Financial Review for the year 2008-2009, presented by LIME Finance and Corporate Affairs Vice-President Jonathan Bass, the company achieved gross revenues of EC$ 105.6 million.

Bass noted that the revenue was in line with that of the previous year. He reported, however, that profit before taxation was EC$ 17.4 million, a 33% decrease when compared to the 2007/2008 fiscal year.

A general trend of decreasing revenue was witnessed in 2008-2009 for the company. Compared to last year, the company experienced a 6% decline in data revenue, international revenue from incoming calls decreased by EC$ 0.9 million, domestic fixed line revenue decreased by 4% and revenue gained from fixed international outgoing calls fell by 24%.

However, LIME was able to record a 4% increase in mobile revenue and a marginal 1% increase in total internet revenues when compared to the last financial year.

According to Country Manager David Lake, although 2008/2009 was a “whirlwind year of challenges, opportunities and changes”, LIME was able to weather the storm and deliver “encouraging results” for the year ended March 31, 2009.

“The challenges of the previous year did not abate, but rather were exacerbated by the global financial turmoil that unfolded during the latter half of the year. Notwithstanding the exigent economic environment, your Company was able to stay on course through operational efficiency gains and productivity improvement changes over the year in review,” Lake noted in his first AGM report as Country Manager.

Meanwhile, Bass explained the reason for the reduction in profit to the present shareholders. He stated that an increase in operating costs was mainly responsible the decline.

According to his report, total operating costs increased by EC $9.5 million, an 18% leap from last year’s expenses.  Bass attributed the increase mainly to the transformation and restructuring of the company, which ran up to EC $5.9 million. He further explained that a 31% increase in utilities due to expansion and upgrade of the networks, an EC$ 0.8 million increase in Government Licence Fees and an EC$ 2.9 million increase in Management Fees also increased the expenses of the company.

Against a backdrop of sliding global share prices, LIME has encouragingly been successful in keeping its share price at EC $6.50. 

Shareholders and executive members remained hopeful that the performance of the company amid stormy economic circumstances would prepare the company for the much-anticipated economic upturn.