August 01, 2012
Wednesday, August 01, 2012
THE Fiji National Provident Fund-owned Amalgamated Telecommunication Holdings (ATH) recorded an 87.8 per cent improvement in net profit after tax, largely attributed to major subsidiaries such as Vodafone Fiji and the gains from the FINTEL purchase this year.
ATH chairman, Ajith Kodagoda said in the company's 2012 annual report released yesterday that the company's focus on consolidating some of its subsidiaries proved to be prudent considering the tough economic climate.
ATH's consolidated net operating profit after tax and minority interest for the year ending March 31, 2012 was $18.3 million, an increase of $14.2 million as compared to last year's result.
The $14.2 million increase, the report said, was because of improved performances by major subsidiaries in the group like Vodafone Fiji and the fair value gain from the acquisition of FINTEL earlier this year."
"The turbulent global economic situation has - and will continue to have -some effect on both Fiji and ATH in spite of the resilience and optimism that our company nurtures," Mr Kodagoda said.
Despite global trends, Fiji's GDP achieved modest growth in 2011, primarily because of an increase in tourist arrivals, while other areas of Fiji's economy have mirrored the reduced growth of other countries.
Real per capita incomes in Fiji have declined over the past few years, as has private investment, both of which provide the fuel to power our economy by creating growth.
These indicators are further affected by internal economic setbacks, such as the January and March 2012 floods in the Western Division, and external economic forces such as the continuing global economic slowdown and financial uncertainty.
"In the face of such a forecast, ATH's decision to engage in the consolidation of its companies has proven to be a prudent move.
"Our acquisition of 49 per cent shareholding in FINTEL in mid-March 2012, together with ATH's management rights on the Fiji government's 51 per cent meant that ATH gained effective control of FINTEL."
The overall growth for the ATH Group was fairly consistent with 2010-2011, with a slight increase in consolidated revenues by $2.3 million.
The upward results are particularly attributed to the profits of FINTEL and reduction in cost of sales.