One Communications 2017 Financial Results

In a filing with the Bermuda Stock Exchange [BSX], One Communications Ltd., today [April 26] announced financial results for the year ended December 31, 2017, with a net income for the year of $15 million.

The filing stated:

One Communications, a diverse telecommunications holding company, is pleased to announce its results for the year ended December 31, 2017.

Overview of the year ended December 31, 2017:

• Net income for the year of $15 million, or $0.36 per diluted share [2016 8-month results: $2.1 million, or $0.05 per diluted share];

• Shareholders’ equity of $136.4 million as at December 31, 2017 [2016: $123.2 million];

• Cash flow generated from operating activities of $27.2 million [2016 8-month results: $21.5 million]

• Significant $30.6 million capital investment during the year [2016 8-month results: $28.2 million];

• $16.9 million cash at December 31, 2017 [2016: $15.6 million].

Commenting on the financial results, Frank Amaral, CEO of One said: “2017 was a strong year for the Company. We maintained the revenue growth achieved in 2016 while significantly reducing operating expenses, which resulted in the Company recording a profit for the year of $15 million.

“The Company completed its roll out of its high speed 4G LTE mobile data services in November 2017. All of our internet customers received a free speed boost in Q4 2017 as part of our FibreWire infrastructure build and we continue to make progress on our revolutionary television platform which is to be launched towards the middle of 2018.

“On the customer service front, we are focused on improving the customer experience as we rollout new systems and performance measures, and undertake key internal integration to allow us to provide customers with the convenience of one bill in the second half of 2018.

“Cayman continues to generate positive growth as we build out our fibre network and add customers as the islands’ highest customer rated service provider.

“We have seen significant changes in the organizational structure of the Company at all levels and are confident that these changes will equip us to remain at the forefront of what is an increasingly competitive operating environment”.

Summary of One’s results for the year ended December 31, 2017

Introduction

One recorded net income for the year of $15 million. This compares with net income of $2.1 million for the 8 months from May 3, 2016 – December 31, 2016. Net income per share for the year ended December 31, 2017 was $0.36 per share [2016: $0.05 per share].

One’s total assets increased during the year to $198.3 million [December 31, 2016: $185.4 million].

During the year we sold investments realizing a $0.9 million gain on disposal. We also sold our equity interest in Quo Vadis Holdings Ltd. to WISeKey SA, receiving $1.0 million in cash and 88,800 shares of WISeKey, valued at $0.4 million for a total consideration of $1.4 million. The Company did not recognize a gain or loss on the transaction.

Borrowings

During the year One amended and restated the Long-Term Debt Agreement to increase the facility to $37.5 million. In connection with the amended and restated debt, the Company increased the limit of its overdraft facility from $5 million to $10 million. As per the amended and restated agreement, the Company entered into a swap transaction effective June 30, 2017 for a notional amount of $11 million.

Shareholders’ Equity

Shareholders’ equity increased to $136,425 [2016: $123,177]. The Company’s board approved a share buyback program effective March 1, 2017 to December 31, 2017 and restricted to a maximum of 5% of the Company’s outstanding share capital. During the year the company repurchased 446,652 shares at an average cost of $2.78 per share.

The Annual General Meeting of the Company is scheduled for 9am on Wednesday 16th May, 2018 to be held at 30 Victoria Street, Hamilton, Bermuda.

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