SaskTel has released its 2016-2017 Q2 financial report, revealing that the crown-owned corporation’s net income came in at $36.1 million, about $200,000 less than it made during the same three month period ending September 30th in 2015. Despite the slight decrease, overall the carrier has seen significant year-over-year profit growth over the past six months and expects to exceed the target for its fiscal year ending March 31, 2017 of $104.2 million.
Net income for the six-month period ending September 30th was $72 million, a bump of $7.6 million over last year’s numbers and an 11.8 percent increase.
The company’s decreased profits aren’t due to lowered revenue — in fact, revenue increased in Q2 by 0.6 percent — but due to a 1.4 million (0.4 percent) increase in expenses. The company chalks up the higher operating cost to “decreased wireline access, long distance and equipment sales partially offset by increased internet, wireless, managed and emerging services and maxTV entertainment revenues.”
Looking at the situation over a larger swath of time reveals an overall decrease in expenses. When comparing the six-month period ending September 30th, 2016, with the six-month period ending September 30th, 2015, the numbers show expenses decreased by $2.5 million. SaskTel says this is due to an adjustment in the estimation of the useful lifespan of unspecified infrastructure and decreased goods and services purchased.
Decreasing expenses will be a crucial element for the carrier, which also saw a $5.9 million year-over-year drop in revenue for the six month period ending September 30th. Sasktel says this decrease is primarily driven by “decreased local and enhanced service and long distance revenues as a result of customers moving from wireline to wireless services, commonly referred to as wireless substitution and decreased equipment sales.”