Fiji’s Amalgamated Telecom Holdings (ATH), the group which controls a number of local subsidiaries – including Telecom Fiji Limited (TFL), Vodafone Fiji, Fiji Directories Limited, Internet Services Fiji Limited (Connect), Transtel Limited, Xceed Pasifika, ATH Technology Park Limited, ATH Call Centre Limited (ATH Intouch) and Pacific Emerging Technologies Limited – has reported a 48% improvement in net profit for its fiscal first-quarter ended 30 June 2011. ATH said profit after tax reached FJD2.047 million (USD1.171 million) despite quarterly revenue dipping to FJD63.9 million from FJD64.6 million in the same quarter last year.
Local newspaper The Fiji Times notes however, that the holding group’s financial fortunes have faltered since 2007. That year ATH reported net profit of FJD23.5 million for its fiscal first-half, and twelve months on the company’s net profit for the corresponding six-month period was down to FJD19.4 million. By 2009, the impact of market competition had further eroded profits – which reached FID9.3 million – and in the group’s 2011 financial year, the figure slumped 73% to FJD4.1 million.
The telecom group’s waning performances have been attributed to a number of factors such as a weak economy, increased competition and price reductions forced by the Fiji Commerce Commission. All of these have had a negative impact on revenue, while it has been saddled with increases in depreciation and amortisation due in part to significant capital expenditures. ATH is majority-owned by the Fiji National Provident Fund with the government of Fiji being the second largest shareholder.