The US company that is in the process of acquiring a controlling interest in KeyTech, has posted a third-quarter profit of $6.6 million, or 41 cents per share.

Atlantic-Tele Network (ATN) is a trading company that invests in the communications and renewable-energy industries. It is based in Massachusetts and has a connection with Bermuda that stretches back to 1998 when it was the primary investor in CellOne.

It was announced last month that ATN is seeking a controlling interest in Island telecommunications firm KeyTech. In the deal, ATN is giving KeyTech its existing shareholding in CellOne and $42 million in cash, in return the US firm will take a 51 per cent stake in KeyTech. KeyTech shareholders have agreed to the move, which is now awaiting regulatory approval.

ATN’s third-quarter net income was down about $10 million from the $16.2 million reported during the same three months of 2014. However, the firm also reported quarterly revenues of $96.8 million, which was 8 per cent higher.

The company’s operating income was $22.5 million, down 22 per cent, which included $2.5 million of transaction-related costs.

Following the completion of its acquisitions of KeyTech in Bermuda, and the Innovative group of companies in the US Virgin Islands, the firm is looking to boost its annual revenues by between $180 and $200 million, according to Michael Prior, ATN’s chief executive officer.

“Third-quarter results were in line with our overall expectations, reflecting a mix of factors affecting revenues and operating profitability that are consistent with the execution of our strategy,” he said.

“Our acquisition of a controlling interest in KeyTech Bermuda pairs our 43-per-cent ownership of CellOne with their 42-per-cent ownership and adds wireline voice, broadband and video services to our existing mobile services. KeyTech recently received shareholder approval for the transaction and we are now awaiting regulatory approval.”

Regarding the KeyTech and Innovative acquisitions, Mr Prior said: “In both cases, we are investing in markets and geographies we know well, and where we will have the ability to provide customers with a single connectivity solution for mobile and fixed telecom and media services.

“After accounting for the cash outlays associated with these agreements, ATN still will have significant cash resources and debt capacity to invest in organic-growth projects and to deploy in additional acquisitions, and we are actively reviewing opportunities in both categories.”