FRIDAY, DEC. 7: KeyTech Limited says it will continue to “respect” the current economic climate after announcing a significant drop in operating profit for the six-month period ending September 30.

Operating revenues were also down as the company is forced to deal with customers’ reduced use of traditional wireline voice services (i.e. landline telephones).

The company’s operating profit for this period was $6,816,069 — down on the operating profit of $9,133,389 for the same period last year.

Included in the results for the six months ending September 30 in 2011, is a gain of $10,516,501 on the M3/CellOne merger, a writedown of assets associated with getting out of the hardware business of $4,098,930 and a goodwill and intangible asset impairment of $2,953,641.

Take these one-off charges out of the equation and operating profit for that period in 2011 was $5,669,459 — less than this year. However, operating revenues for the period ending September 30 this year were $39,750,121, a decrease of $4,223,657 compared to the same six-month period last year.

Of this, $1,422,080 relates to reduced use of wireline voice services, and $629,197 from reduced directory sales. Other revenues decreased $896,547 due to declines in colocation and building rents. Hardware and software revenues declined $631,533 — related to exiting that business.

KeyTech Limited reported in a press release: “Since the advent of cellular and with the increase of data driven social media communications for customers, service providers will continue to see declines in voice revenues. A trend that is sure to prevail over traditional ‘dial’ tone devices.

It added: “The stagnant economy continues to negatively impact revenues; however, the group is focused on delivering long term results to solidify our future. Our networks must have the ability to offer better performance for the ever-increasing need for high speed broadband.

“In April of this year BTC completed the implementation of its Metro Ethernet network (PRISM) and now offers new and advanced products to corporate customers. 

“Over the past six months, we have focused on enhancing our position by improving our networks while staying engaged with customers.  The group remains poised with respect to the economic climate; therefore we continue our efforts to improve on efficiencies within our operations.”