One Communications foreign parent hit by Q1 loss – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

Log In

Reset Password
BERMUDA | RSS PODCAST

One Communications foreign parent hit by Q1 loss

ATN International Inc, the Massachusetts-based parent company of One Communications and Fireminds, has reported a net loss attributable to ATN stockholders for the first quarter of 2022 of $1 million.

That compares with net income attributable to ATN stockholders of $2.7 million in the same period a year ago.

ATN said first-quarter consolidated revenues were $172 million, up 38 per cent compared with $124.5 million in the same period a year ago.

A decrease in operating income for the quarter was mainly driven by $3.4 million of one-time losses on disposed assets in both the company’s US and international telecom businesses.

ATN’s international telecom segment, of which One Communications and Fireminds are a part, had revenues of $86.8 million for the quarter, up 4 per cent year over year.

The company said this increase was mainly due to mobility subscriber growth as well as higher carrier services revenue, partially offset by a decline in federal high-cost support subsidies for the US Virgin Islands.

Increased travel and tourism in Bermuda and the USVI contributed to the increases in segment revenues.

Operating expenses for the quarter increased incrementally year over year as the company’s operations returned to pre-pandemic levels and the company invested in brand positioning to expand its subscriber base in certain markets.

The international telecom segment reported operating income of $11.8 million and adjusted ebitda of $27.1 million in the quarter, compared with operating income of $13.1 million and adjusted ebitda of $26.9 million in the prior year period.

The company said the year-over-year changes were due to higher operating expenditures offsetting the increase in segment revenues, and the impact of a one-time loss on disposed assets in the quarter.

Michael Prior, chief executive officer of ATN, said: “We started off 2022 on the right foot, expanding our subscriber counts and reach in multiple markets.

“With a persistent focus on being first to fibre, we are rapidly deploying fibre optic facilities and other high-speed solutions in the communities we serve.

“More communities, homes, businesses, schools, and even other carriers now have access to world-class connectivity as a result. Customers up and down the value chain are very appreciative of these inroads, and we continue to build relationships for the long term.”

He added: “We currently have more than half a million homes passed by our broadband networks, up 92 per cent from a year ago, and we are now capable of delivering higher-speed data services to 38 per cent of our residential subscribers.

“We expect to continue to increase the number of homes, schools and businesses passed by our high-speed services as well as the number of customers subscribed to those services throughout the year which should be reflected in our financial results through revenue growth and margin improvement.

“We continue to see attractive investment opportunities in many of our markets with good growth potential. We plan to further expand our offerings of higher-speed services via fibre and other high-speed data solutions to capture this sizeable opportunity.”

ATN’s international telecom segment also includes GTT in Guyana, Viya in the USVI, Logic Communications in the Cayman Islands, and ATOC in the Caribbean.

Michael Prior, chief executive officer of ATN (File photograph)

You must be Registered or to post comment or to vote.

Published May 03, 2022 at 7:57 am (Updated May 03, 2022 at 7:38 am)

One Communications foreign parent hit by Q1 loss

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon