SaskTel posts $104.4M in net income in ’21-22 annual report

SaskTel exceeded its target for net income in 2021-22.

In its annual report released Thursday, the Crown corporation said it had a net income of $104.4 million in the ’21-22 fiscal year. Its target for the year was $100 million.

However, the company’s net income last year was $26.4 million lower than it was in the 2020-21 fiscal year due in part to higher depreciation and amortization expenses.

SaskTel reported $1.301 billion in revenue last year, down from $1.324 billion in the previous year.

According to the report, SaskTel had increased connections year over year in its fibre optic networks (up 11.9 per cent), broadband internet (an increase of 3.0 per cent) and wireless (up 1.3 per cent), but decreases in landline connections (a drop of 5.5 per cent) and its maxTV service (a decline of 3.4 per cent).

“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, 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,” read a media release.

“The decline was also offset by increased wireless revenues, which resulted from a growing wireless subscriber base.”

During the fiscal year, the company waived data overage charges for some customers due to the COVID-19 pandemic. It also waived some fees for customers with family members in Ukraine after Russia invaded its neighbour.

SaskTel contributed more than $2.8 million to 548 non-profit and charitable organizations, community associations, venues, events, and partnerships in more than 144 communities throughout the province.

In 2021, the corporation completed the Wireless Saskatchewan initiative, which included 106 small cell sites, 89 standard macro towers, improved wireless data capacity in 11 resort areas, and the expansion of SaskTel fusion Internet to 34 new sites.

The company put more than $465 million into capital investments during the fiscal year.

SaskTel declared dividends of $94 million to the Crown Investments Corporation, hiking its total over the past five fiscal years to $543.1 million in dividends.

Crown Investments Corporation

The corporation reported net earnings of $361 million from the Crowns during the 2021-22 fiscal year, and a contribution of $327 million to the General Revenue Fund in dividends and equity repayments.

The CIC’s net earnings were down from $585.4 million in the 2020-21 fiscal year.