CellularOne owners Bermuda Digital Communications recorded revenue of $5.3 million in the first quarter of this year.

Results published by US telecommunications company Atlantic Tele-Networks (ATN), which owns a 58-percent stake in BDC, showed the company had 19,375 subscribers on the Island.

"Equity in the earnings from BDC, our Bermuda affiliate, remained fairly consistent for the quarters ended March 31, 2007 and 2008," ATN added in its earnings statement.

Massachusetts-based ATN said its revenue rose four percent for the first quarter to $45.6 million, while profits was $7.9 million for the quarter, as compared to $6.9 million for the same period in 2007, an increase of 14 percent. The ATN results do not take into account that the American company increased its holding in BDC's common stock from 43 percent to 58 percent.

BDC announced that $16.5 million in shares of its common stock had was tendered by shareholders in exchange for cash.

ATN did not tender any shares for repurchase, and, as a result of the transaction, its holding in the Bermuda company increased.

"We are delighted to be able to provide our loyal shareholders, most of which have been invested in BDC for over 10 years, with an opportunity to receive some liquidity," said Kurt Eve, BDC's chairman and chief executive officer.

"Thanks to the hard and creative work of our managers and employees, and the loyalty of our customers and shareholders, BDC has been a wonderful success story for investment in Bermuda's telecommunications infrastructure.

"We found the perfect partner with ATN, as our largest investor and shareholder, and we are very comfortable with our working relationship and appreciate their continuing support of our management team.

"We look forward to continuing to expand and improve our services and hope to be able to continue to reward our shareholders and customers for a long time to come."

Michael Prior, ATN's president and chief executive officer, said: "This has been a great investment for us and a great partnership. We do not expect any fundamental changes in the way BDC conducts its business. We hope only to be able to provide BDC and its management with the opportunity and support to expand their operations and continue to provide the best mobile voice and data and best customer care in Bermuda."

No shareholders tendered more than half of their shares and Mr. Eve, BDC's Bermudian founder, chairman and CEO, will remain a substantial shareholder. No management changes are expected as a result of this transaction, as Mr. Eve and all senior management will continue in their positions.

Bermudian individuals, including members of management, will continue to hold approximately 35 percent of BDC's common stock. BDC expects to fund its purchase of the tendered shares through a combination of cash on hand and bank borrowings.

Currently, ATN accounts for its investment in BDC under the equity method of accounting and does not, for financial reporting purposes, consolidate BDC's financial results. Following the closing, ATN will consolidate BDC's financial results beginning in the quarter ending June 30 this year.