The Fiji Sun Online reports that after five consecutive years of financial losses, Telecom Fiji Limited (TFL) returned to profit in its fiscal year ending 31 March 2015, booking a net profit of FJD18.49 million (USD8.75 million), compared to a FJD15 million loss the previous year. TFL’s turnaround was aided, it said, by the sale of its asset, Ganilau House in Suva. TeleGeography notes that TFL is wholly-owned by Amalgamated Telecom Holdings (ATH), a holding company owned by Fiji National Provident Fund (58.2%) and the government of Fiji (34.6%); the remaining ATH shares are distributed.
Commenting on the financial results, TFL chief executive officer Mothilal De Silva said that telco’s turnaround was achieved ‘through persistent initiatives addressing key business performance areas’. TFL has undertaken a major cost rationalisation programme which De Silva notes required ‘some tough operational decisions such as reductions in human capital and disposal of certain assets within the company’. Simultaneously, the telco has worked to improve its commercial offers as it looks to protect and expand its revenue and market share. In the year under review, TFL increased its core operational revenue by 3.25% (FJD2.85 million), through a focus on increasing its sales and marketing activities. Revenue growth was fuelled, he said, by a 16% increase in business customers, who demand ‘faster speeds and higher resiliency and availability of communications networks’. Going forward, TFL plans to continue improving its networks and services to meet customer demands for ever-faster data speeds and to further improve its service delivery. One such project includes the upgrade of its fibre-optic networks across the country. Upon completion, the telco says it will be able to deliver fibre connectivity to end users at speeds of between 10Mbps and 50Mbps.