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SaskTel shows $130M in net income for 2020-21, $1.3B in operating revenue

On Thursday, SaskTel reported a net income of $130.8 million in 2020-21 and operating revenues of $1.318 billion – a year-over-year revenue growth of $34 million.
On Thursday, SaskTel reported a net income of $130.8 million in 2020-21 and operating revenues of $1.318 billion – a year-over-year revenue growth of $34 million. File / Global News

SaskTel released its annual report for 2020-21 on Thursday showing a net income of $130.8 million, along with $1.318 billion in operating revenue, which is a year-over-year revenue growth of $34 million.

The Crown corporation’s revenue is generated mainly through its wireless network services and equipment at 46.3 per cent.

Fixed broadband and data generated 20.8 per cent of its revenue in 2020-21, while wireline communications and maxTV made up 14.9 per cent and 7.9 per cent of total revenue, respectively.

Read more: SaskEnergy annual report shows $59M in net profit for 2020-21, low commodity rate

“This past year has shown that a consistent and high-quality broadband connection is of vital importance to both SaskTel’s rural and urban customers,” said Don Morgan, Saskatchewan’s minister responsible for SaskTel.

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“SaskTel invested over $308 million in capital improvements to provide these connections, expand its network and plan for future demand.”

Of the $308 million invested, $283.9 million was spent on property, plant and equipment, which included fibre to the premises (FTTP), wireless networks (LTE and Wi-Fi), access network demand and other network improvements.

The remaining $24.3 million was spent on customer self-serve systems, accounting reporting systems and billing systems.

Read more: SaskPower shows $160M in net income for 2020-21, down $45M from a year ago

During the COVID-19 pandemic, SaskTel provided customers with unlimited wireless data on its post-paid wireless data plans, noSTRINGS pre-paid wireless plan and SaskTel fusion internet plans from March 17 to June 8, 2020. and again from Dec. 17, 2020, to Jan. 11, 2021.

SaskTel also provided free content for maxTV and maxTV Stream customers and waived late payment charges for a six-month period.

It also provided a two-month service credit to SaskTel customers who were signed up to the federal government’s connecting families initiative.

“As the COVID-19 pandemic carried on, SaskTel never lost sight of our purpose and vision: to be the best at connecting people to their world,” said Doug Burnett, SaskTel president and CEO.

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“The pandemic has highlighted just how essential technology is in our lives, and SaskTel will continue to evolve our business by delivering an exceptional customer experience, lead the market in broadband services, and focus on digital transformation.”

SaskTel paid $110.5 million in dividends to Crown Investment Corporation during the fiscal year ending on March 31, 2021 – $3.3 million more than a year ago.

Its full annual report can be viewed on the SaskTel website.

Click to play video: 'SaskTel discusses costly challenges to delivering internet province wide' SaskTel discusses costly challenges to delivering internet province wide
SaskTel discusses costly challenges to delivering internet province wide – Mar 20, 2021

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