BTL reports record profits

Since the beginning of its privatization in 1988 the corporate performance of Belize Telecommunications Limited has been nothing short of spectacular. This year has been no exception with B.T.L. posting record revenues, record profits and for shareholders¼record dividends. While the figures will not be official until presented at next Thursday’s Annual General Meeting, Chairman Lisa Shoman offered a sneak preview on last night’s “One on One with Dickie Bradley.”

Lisa Shoman, Chairman, BTL

“”For this year I think gross revenue is going to be something in the lines of about eighty million. Okay, out of that eighty million earnings before taxation will come up to around 42 million dollars. When you take taxation out, which works out to about 15.6 million or thereabouts, it works out to something like 26.4 million.”

Aside from its hefty take in taxes, government will also collect record dividends from the block of BTL Shares held by the Social Security Board. Other Shareholders, including MCI, the Carlisle Group and a number of individual Belizeans, are expected to receive dividend payments of 59 cents per share. This is up four cents from last year and means that if you bought shares in 1998 or 1990 at two dollars each, your annual yield for 1998/99 will be nearly thirty percent, a rate of return unheard of in the annals of modern corporate capitalism.

But while BTL and its shareholders may be awash in a sea of cash, Shoman warned that the company must prepare itself for the year 2002 when it’s privileged status as a legal monopoly will end.

Lisa Shoman

“We know that we must become more competitive. It’s not a matter…we can’t prolong a situation whose time has ***. We are well aware that it is not just a matter of the Government of Belize. It is a matter of free trade, it is a matter of W.T.O., it is a matter of many commitments that the country has made. That is our task and we’re not waiting until we are told we no longer have an exclusive license. We are doing that now.”

Most observers believe that competition for BTL will come in the areas of cellular and internet services. Another cloud on the horizon is the coming establishment of a government appointed board to regulate utility rates. With over fifty cents of every dollar paid to BTL winding up, as profit there will be tremendous public pressure to “say it for less.”