SaskTel's annual report shows increased profits

SaskTel took in $127.4 million in profits during its last fiscal year, according to a provincial news release.

The Crown corporation's annual report, which covers the fiscal year that ended March 31, was released Monday.

SaskTelsaid achange in how profits were calculated in which $14.4 million in expenditures made on customer accounts or intangible assets were reclassified from capital expenditures to cost to obtain meant the final profit total was lower than it would have been had the previous year's method been used.

Under the new accounting method, SaskTel's profit was$6.4 million more than the year before. Underthe old method, it would have been an increase of $15.8 million.

It attributes the profits toincreased adoption of its wireless service in Sask. andpeople signing up for services offered over SaskTel's fibre network.SaskTel brought in $1.3 billion in revenue, with more than 40 per cent of that from wireless service.The number of subscribers went up by about2,500 people compared to the same time last year.

Slightly less than30 per cent of the revenue came frommaxTV, internet and data, while most of the rest was brought in from "local access, enhanced services" and long distance calls.

SaskTel increased the dividends paid to the Saskatchewan Crown Investments Corporation to $116.3 million, which was $26.4 million more than the previous year.