Telemedia net profit drops by millions
Belize Telemedia Limited is holding its annual general meeting on September twenty-eighth and some bad news is going to be delivered to its shareholders. A peak at the financial statement of the nationalized company for fiscal year ending March thirty-first, 2012 shows a huge decrease in revenue. In the 2010/11 financial year, B.T.L.’s gross income was one hundred and fifty-eight million dollars, but for the year 2011/12 gross income decreased by eight percent to one hundred and forty-five million dollars, a reduction of thirteen million.
Overall Net Profit also decreased by seven point three million dollars from thirty-four million to twenty-six point five million; a twenty-two percent reduction. The total equity at the end of March, 2012 stood at two hundred and forty-four million dollars, with the return on equity dropping from twelve to nine percent. That is what is being reported, but the financial position would have been even worse if Government hadn’t reduced B.T.L.’s tax bill, while also ignoring a commercial loan that was in place at the date of nationalization in August 2009. The reduction in taxes created an additional and temporary eight million dollars improvement in the bottom line. Without that, the profits would have fallen to eighteen million, which is a forty-five percent reduction in profits compared with the previous year.
Since the first nationalization attempt in 2009, the Government and its appointees have already taken thirty-four million dollars from B.T.L. in dividends, and they are expected to take another ten million at the end of this month. That’s enough to pave all the roads in Belize City, twice over, but compensation to the former owners has still not been paid. One of those owners, the B.T.L. Employees Trust, has just applied to the Caribbean Court of Justice requesting that the payment of dividends at this year’s A.G.M. is stopped or placed in an escrow account, pending the determination of outstanding court cases that seek to return B.T.L. to its former owners. The Trust’s request to the C.C.J. refers to the Governments high credit risk following its decision not to pay the Superbond; the fact that B.T.L. is rushing through this A.G.M. so that they can make another dividend payment to themselves; as well as highlighting that the last court ruling confirmed the second nationalization was also null and void.
Hip hip hurray fu udp they are doing such a wonderful job.
that’s good to hear. If their profits have dropped by millions it means that the consumer is now paying less for telemedia’s services.
It looks like more financial mischief, at best.
The less profit they make simply means the less us citizens gave them as profit- ideally- it should be zero profit but no losses
This will be the PMs fault, right Rod?
That’s Right Storm… Once government involved.. nothing is and will ever be .. so if they say short in profit.. check the PM and the governors where did it go.. lol was it invested on the sweet hearts, lavish and more acquisition.. or deposited to international banks.. MONEY TRAIL JEJE..
NO SURPRISE THERE.. ONE MORE FOR THE GOVERNMENT..
Telemedia seems to also been robbed by udp. and the sad fact is that my bills are still the same if not higher.
Barrow the grand robber
Unu Betta check barrows bank account in Texas I do believe all the profits were transferred to a bank in Houston .
The less profits these guys make the more the consumer saves. OK?
so sad for the share holders, they are left holding the wrong end of the shaft.
Consumer saves? Just because profits fell does not mean consumer saves. Do you really think the GOB appointed personnel will still not get their cut? In the long run Telemedia will have to find ways to pick up back the following year.
Also notice that government reduced Telemedia’s tax bill. If this never happened the amount would be far worst for Telemedia. Seems that Telemedia is not worth investing your money.
Happy Cow, Simon and Javier Solis,
This is the problem with us in Belize, and why we can’t prosper. It is also why no large business should be run by a government. Have you ever stopped to wonder, if the company makes no profit, where is it supposed to find money to invest in growth and new technology???? Tax payer money? Taxpayers and rate payers are one and the same! Outside investment? No one invests in a profitless company and no bank lends to it. This is why we will descend within a short time period into black-outs and outdated telecom service if utilities remain in government hands.
DA FU We )))))) the grand beggar Dean Barrow, must be happy he is now the official chief of losers , hahahahah
I bet they made Less Profit because they paid Net Vasques & family + cronies a Lot More wages.
Bandidos but not necessarily Robin hoods.What a sick joke.
LOSS OF PROFITS IS BAD FOR ANY BUSINESS! Less profit does not mean they are saving you money.
Loss of Revenue would indicate a drop in sales or savings passed on to the consumer.
All this means is they are spending more money than before and have less to show after everyone is paid .
And where do you think that 45% drop in profit went??? Yes 45% is the real number because no one else would be let off the hook for taxes except the taxman himself.