from $8.7 million, on revenues of $51 million in the year to March 31.

Earnings per share were $5.45, compared with $4.37 in the year to March 1993.

The company declared a dividend of $3,962,810.

Shareholders' equity is $80,430,976, compared to $73,587,771 from a year ago.

Equity per share is $40.59, compared with $37.14 last year.

The company briefed shareholders at an annual general meeting on Friday, after having mailed out the annual reports earlier in the week.

Chairman Dr. James King, reported a record number of new lines (2,282 as opposed to 797 last year) were added and there was real growth in the business sector, especially in the City of Hamilton.

Local calls were up 9 percent to 77 million and overseas call revenue was up 5.5 percent, with outgoing calls increasing by 17 percent to 7.2 million.

Cellular telephone usage jumped by 57 percent last year.

Dr. King detailed the December price reduction in overseas services and the company's $12.9 million capital expenditure, $11.7 million last year. Further capital expenditure is anticipated next year.

Telco spends half of its operating expenses on salaries and employment benefits ($25.5 million) for its 407 employees.

Investment income totalled $703,471, a little less than last year's $773,242.

Retained earnings at the end of the year were $46,474,165. Fixed assets are valued at $60.5 million, just up from $56.2 million from the year before.

Total assets are placed at $91.1 million, up from $82 million a year ago. The company made more than $22 million from overseas calls, more than $9 million from local calls and more than $8 million each from equipment rentals and access charges.

The annual report also discussed Telco's application to the Telecommunications Commission with Dr. King stating, "There has been much discussion on the price of the overseas service and how it needs to be lowered to allow Bermuda to become a more competitive international business domicile.

"Through its application, the company has stated that economic efficiencies would result from its entry into the international arena and, therefore, significant price reductions could be achieved.''