fiscal 1993 -- 7.5 percent less than 1992.

Telco's results were affected by the company having to pay $1.4 million to Cable and Wireless and AT&T for the use by its customers of calling cards in respect of previous years.

Without the extra charge, Telco would have recorded growth of 4.1 percent.

Earnings per share for the 12 months to March 31, 1993, came to $4.37, compared with $4.73 the year before.

Operating revenues increased one percent ($489,774) to $47 million, while operating expenses went up 3.2 percent ($1.22 million) to $39.36 million.

Overseas telephone calls were down by 3.7 percent ($754,753) on the year but still accounted for 42 percent ($19.77 million) of total revenue.

Equipment rental revenue remained stable at $8 million, access charges went up by 5.2 percent ($394,319) to $8 million and revenue generated by local calls increased by 6.4 percent ($489,407) to $8.14 million.

Other connection charges went up by 3.5 percent ($62,751) to $1.9 million, paystation revenue went down by 1.6 percent ($7,287) and other income increased by 52.6 percent ($257,042) to $745,320).

The biggest drain on expenses were salaries and employee benefits, which went up by 5.7 percent ($1.1 million) to $20.4 million.

Depreciation and retirements increased by 10.8 percent ($849,439) to $8.69 million, Government taxes and fees went up by 7.5 percent ($251,530) to $3.6 million, maintenance costs went down by 20.6 percent ($927,515) to $3.57 million and general and administrative expenses decreased by 1.6 percent ($49,478) to $3.1 million.

Assets went up by 8.2 percent ($6.18 million) to $82 million, while liabilities increased by 1.9 percent ($1.32 million) to $8.43 million.

Shareholders' equity increased by seven percent ($4.86 million) to $73.59 million.

Telco president Mr. Colin Young called the performance "creditable'' and said he was particularly pleased with the increase in local calls, prompted in part by new services.