KeyTech boosted its profits by almost $3.5 million over the six-month period to the end of September, mainly due to the improved financial performance of its five subsidiaries.

The utilities company's consolidated net income for the six month period was $9,461,838 compared to a net income of $6,062,903 for the same period last year, an increase of $3,398,935.

"With all indicators moving in the right direction, we are very pleased with the consistent progress we are experiencing across all our endeavours," said CEO Sheila Lines.

"We particularly congratulate BTC's residential service team for consistently delivering well over 90 percent on its 'Promises Met' targets."

Net income for the period includes $1,862,189 of annual profit from the Bermuda Yellow Pages's print directory compared to $1,653,558 in 2006, which is distributed during the first six months of the fiscal year.

Operating revenues for the period were $57,732,939 compared to $54,672,878 for the same period last year, an increase of $3,060,061. This growth is a result of enhanced revenues from cellular services in Bermuda, residential wireless data services in the Cayman Islands, and directory advertising revenue.

Operating expenses for the period were $39.6 million compared to $39.1 million for the same period last year, an increase of $551,329. Amortisation expenses for the period were $9,257,116 compared to $10,515,086 for the same period last year, a decrease of $1,257,970.

Equity earnings in affiliates for the six-month period were $386,741 compared to $418,639 in the prior period.

During the six month period, KeyTech invested $8,447,923 in capital assets compared to $9,192,878 during the prior period, as we continue to improve our infrastructure and develop new services in Bermuda and the Cayman Islands.

Basic and fully diluted earnings per share for the six month period ended 30th September 2007 were $0.71 compared to $0.46 for the same period last year.

In addition, BTC has been engaged in developing plans and strategies for rolling out a next generation network, an Internet Protocol based infrastructure which will provide the foundation for new and innovative services. Phased implementation will take place during 2008.

M3 Wireless continued to build on our competitive advantages in network quality, roaming, and product knowledge, enjoying particular success with the BlackBerry products in the corporate market and with easyConnect in the residential market. In July, M3 Wireless launched mobile data plans for residential consumers to enable them to enjoy BlackBerry data services with pricing packages as low as $10 month.

In September, M3 Wireless launched 'My Friends & Family Plan', which allows free calls and shared minutes among friends and family in the plan. Overall M3 Wireless revenue grew $1.5 million or 20 percent compared to the same period in 2006.

Meanwhile, Logic is in the process of re-establishing its position in the consulting and hardware services market with a number of key new hires following a management restructuring in late 2006. Logic's long distance voice, residential Internet and corporate data businesses remain strong.

In July, Logic launched a two megabit per second Internet service for consumers at $99.95 per month. During the period, it implemented a number of technologies to make more efficient use of our international bandwidth. Logic's net income for the period was $1.1 million compared to $100,000 in the prior year attributable to both a growth in revenues and a reduction in operating expenses.

WestTel grew revenues $1 million or 40 percent compared to the prior period. Residential Internet revenues are strong and corporate data revenues continue to increase steadily. During the period, WestTel improved our network coverage with a number of new tower installations, which enabled the launch of local voice services in September.

Over the last year, KeyTech in partnership with other Bermuda carriers made progress on a project to build a new international submarine cable between Bermuda and the United States. Last month, the Minister of the Environment, Telecommunications and E-Commerce announced that KeyTech and its partners will be offered the requisite International Class A license and the foreshore license.