Amalgamated Telecom Holdings profit up F$10.4 million

Amalgamated Telecom Holdings (ATH) recorded a F$34.9 million profit for its most recent financial year end, a F$10.4 million increase from its previous annual profit. The surplus was recorded despite tough changes to telecommunication costs laid down by the Fiji Commerce Commission last year.

Despite the reduction in rates ordered by the Commerce Commission, ATH put in place strategies to deal with the situation. These included costs savings from enhanced productivity and better management, particularly in the operations of the domestic fixed line network.

ATH said aggressive marketing by Vodafone Fiji helped overcome the impact of lower call charges.

The group is looking at the possibility of a new corporate structure. The group said it needed to become internationally competitive to facilitate communications between the South Pacific islands and the rest of the world. The group said the biggest problem it faced was the awkward structure of a regulated market.

Telecom Fiji Limited (TFL), a subsidiary of ATH reported a net profit of F$19.6 million for its 2006 financial year, following what it said was significant savings. TFL's expenses were reduced by a significant margin of F$10 million.

The company undertook a number of initiatives which resulted in the cost savings. These included "quick win" projects such as fleet and office equipment rationalisation, credit control initiatives, shared services and purchasing within the group, and initiatives with the Fiji Electricity Authority and Post Fiji Limited.

To attend to the decline in connections and stimulate traffic in the network, TFL has embarked on a program to grow the line base to 110,000 lines and increase traffic in the network by 50%.

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