Outstanding year, but uncertain future for BTL
It’s one of the most anticipated annual general meetings in Belize, usually because shareholders leave with nice gifts and hefty dividends. But this year things were a little different, not because of a lack of profits, but because of confusion over how the profits would be distributed. News 5’s Janelle Chanona reports.
Janelle Chanona, Reporting
The faces in the audience represented the so-called “small” shareholders of Belize Telecommunications Limited, eager to find out how their investment was doing. The company report card showed an outstanding year, with more than twenty-six million dollars in after tax profits. But on December twenty-ninth 2002, BTL won’t be the only team playing on the telecommunications field. The company is bracing itself for a future that is far less certain than the past.
Lord Michael Ashcroft, Chairman of the Board, BTL
“The board is therefore recommending today, and taking into account the financial factors of the small shareholders to declare a dividend of thirty-one cents per share, which is the same as the final dividend last year. The board is also recommending that share holders be given the choice of receiving their dividend either in cash or in additional shares.”
But when the proposal was put to the floor, some shareholders did not respond favourably.
Shareholder #1
“No notice was given because the papers were handed out when we entered this meeting.”
Shareholder #2
“If all of us, all the small shareholders vote for one thing and Carlisle vote for the other, what will happen to the motion.”
Lord Michael Ashcroft
“The motion is carried by the majority of the shareholders.”
Shareholder #3
“Regardless of how many of us vote against it, it will make no difference, it will be carried.”
The matter wasn’t resolved by a show of hands so the board of directors went to a poll. Given the mumblings emanating from the audience, government representative Billy Musa felt it necessary to address the assembly.
Billy Musa Sr., Govt. Representative, BTL Board
“We went through this thing, until five to 6:00 this afternoon, you all got your notice saying that no dividends will be declared and I think we were able to convince the board that dividends should be declared. You have the option to take cash or shares in leu of cash. Mr. Esquivel’s point is taken, that due notice should have been given but that’s not the point right now. The point is if the resolution is defeated, then no dividends would be declared.”
But despite that reaction, the matter was approved by the majority of the shareholders present. Chairman of the Board, Lord Michael Ashcroft explained why things were done differently this year.
Lord Michael Ashcroft
“We have significant capital plans over the next year in which will cost us sixty million dollars. And what we were trying to do…a final dividend of thirty-one cents would cost the company ten million dollars. We are hoping that a substantial number including Carlisle, including the social security board, including many of the small shareholders will elect to take the shares instead of the cash, in order that we can preserve the cash in order to fund what is necessary before competition comes. And for those shareholders who rely on, dependent or would like the cash, then it’s available for them.”
Dividends aside, Lord Ashcroft also alluded to the fact that when the company’s monopoly comes to an end, local call rates will see an increase.
Lord Michael Ashcroft
“If the objective of the government is to bring the benefits of competition to the Belize telecommunications market then it is essential to allow re-balancing of the rates to levels that more closely reflect the cost of providing services. In fact, experience in the region has shown that the policy of restricting or prohibiting rate re-balancing, which may include a rise in local servicing rates, may hinder the realisation of the benefits of competition in the telecommunications market.
In this brave new world of competition, BTL will lose market share as some of its existing customers decide to try out the competition. The Government of Belize and its associates presently account for around twenty percent of BTL’s business. In the current environment, BTL has to accept the possibility that they lose all this business in an unfair manner to a government supported competitor.”
But even if BTL profitability returns to less Olympian levels those Belizeans fortunate enough to get in at the beginning have received financial rewards that will likely never be repeated by any local company. Reporting for News 5, I am Janelle Chanona.
On a point of interest, for all non-shareholders carrying cell phones, the annual report shows the close to seventeen thousand cellular customers accounted for as much as twenty-one percent of the company’s revenues this year, second only to international calls.
