Rent reduced for riders, early budget items approved by Regina Council
6h ago
Regina's city council covered a lot of ground in a three-hour meeting on Wednesday. With all members in attendance, coun...
SaskTel is still calling the last year a strong one, despite bites taken out of its bottom line by the COVID-19 pandemic.
The company made about $130.3 million in net income, but the pandemic took about $10.7 million in impairments out of it, leaving $119.8 million after adjustments. The company’s annual report for the 2019-20 fiscal year was released Wednesday.
Doug Burnett, CEO of SaskTel, said the pandemic also affected how the company does its business.
“(The difference involved) having to manage a network where our customers have moved from their business office to their residence, and ensuring that we were able to meet the demands for data, conference calling — all of that,” said Burnett.
He thinks the company did an “outstanding” job of providing essential services in the pandemic.
Burnett said the company is retooling even now to make sure it can meet customers’ expectations. He explained things had changed — like customers wanting to do business more online — and adjustments had to be made to how services are provided.
SaskTel, along with other Crown corporations, made some allowances for customers during the pandemic like giving free access to some SaskTel Max channels and not charging for data overages for wireless customers.
Burnett said the company was foregoing significant revenue, pointing out the data overages alone would have been about $600,000 a month.
Burnett couldn’t say how much it all added up to because the company doesn’t know how many customers will take advantage of things like the interest deferral program.
“Pulling all of those numbers together is not possible until we have a better sense of just how long this will go on and how badly customers may be impacted and will react to some of the program,” said Burnett.
Burnett said there will be a significant impact on the company’s finances this year, but couldn’t put a number to it yet.
Capital projects could be affected the other way due to the pandemic. Burnett said there could be more projects or others could be brought forward because the company is being encouraged to help stimulate the economy.
SaskTel had to deal with a strike last year, but Burnett said it didn’t have a huge effect on the company. He said things got back to normal very quickly after the strike was over.
“Managers did a very good job of continuing to provide the essential services that our customers needed and I think that the employees were responsible in terms of the way they conducted themselves on the picket line, and when it was all said and done I’m very happy to say that there’s very little disruption within the organization,” said Burnett.
Burnett said there were actually some salary savings from the strike, to the tune of about $2 million.
SaskTel saw a decrease of more than 20 per cent in local access, enhanced, and long-distance services in the 2019-20 fiscal year. Burnett said over the last three or four years the company has seen a straight line of cord-cutters on wired line and long distance, taking about $20 million a year away in revenue.
But Burnett said the company has been planning for that and has been replacing the revenue loss with other “managed and emerging technologies,” including internet and wireless.
“While one service is certainly on the decline, others are still very much on a growth trajectory,” said Burnett.
In the 2019-20 year, SaskTel put $262.9 million into capital projects. According to the company’s figures, 56.4 per cent of the province is covered with fibre, and fibre to the premises increased by 12.2 per cent in the year. Burnett said the investments in fibre and rural access will continue in 2020-21.