SASKTEL EXCEEDS $1 BILLION IN REVENUES FOR FIRST TIME IN ITS HISTORY

SaskTel today released its 2006 financial results, highlighted by a net income of $72.5 million and operating revenues exceeding $1 billion for the first time in its history.

“SaskTel’s solid financial results are a testament to a company with the vision to expand into new revenue streams and lead the market with technologies that anticipate customer need while maintaining an unwavering commitment to the customers and communities its serves,” Minister responsible for SaskTel Deb Higgins said.  “From delivering high speed Internet to remote and sparsely populated areas, to fostering opportunities and hope for our young people with programs like YOUTHnetwork, to partnering with dealers and suppliers in every corner of the province, SaskTel truly does contribute to the quality of life in Saskatchewan.”

“With a communications industry that is changing and consolidating as technologies converge and we face new competition in all lines of business, SaskTel must continue to grow and re-invent its business,” SaskTel president and CEO Robert Watson said.  “SaskTel continues to go beyond the traditional bottom-line and has become increasingly accountable for its social and environmental impact.”

Financial and operating highlights for SaskTel in 2006 include:

• SaskTel has grown its revenues to $1 billion in 2006, an increase of $30.8 million over 2005.  Strong customer growth in cellular services and Max™ Entertainment services contributed to this milestone.
• Max™ Entertainment Services grew to 51,277 customers and increased revenues by $14.4 million from 2005.  In 2006, SaskTel launched Max HD, the world’s first commercial launch of HDTV over an IPTV network, three and four set-top boxes, Live Event Pay-Per-View and Local Video on Demand.
• Wireless revenues increased significantly to $260.2 million in 2006, an increase of 18.5 per cent over 2005.  Total wireless accesses increased by 43,101 for a total of 411,918.  SaskTel invested $20 million to enhance and expand the wireless network including 28 new cellular sites and its cellular network now spans over 96 per cent of the Saskatchewan population.  As well as improving coverage, SaskTel launched SaskTel 10-4™ service, a push-to-talk service and was the first company in Canada to offer Say & Send service.
• Under phase II of CommunityNet, SaskTel has deployed 43 out of 57 planned tower sites and now reaches over 83.7 per cent of the population, serving virtually every community of 200 people or more, and every community of 100 people or more with a school.
• “Other revenues” primarily from growth initiatives increased to $135.6 million in 2006 from $122.9 million in 2005, an increase of 10.3 per cent.  The most significant contributor to the increase in other revenues was DirectWest, which expanded operations in Alberta through their subsidiary company, The Phone Book Company.  Hospitality Network also contributed to increased revenues by expanding their managed communication and entertainment solutions to Canadian hospitals and seniors care homes.  SaskTel International also realized revenue growth in their consulting and installation services to international customers.
• Dividend of $50 million declared to Crown Investments Corporation (CIC) in 2006 for a total of over $1 billion paid in the last 17 years. 
• Between 2004 - 2006, SaskTel achieved over $60 million in annual operational efficiencies.   Initiatives such as the Early Retirement Program (ERP) and other cost containment measures such as process improvements contributed to the savings realized in 2006.  
• Debt ratio of 30.5 per cent, down from 72.2 per cent as of December 31, 1990.
• In 2006, SaskTel has partnered with over 102 private Saskatchewan businesses in over 50 locations and paid over $28 million in commissions to its dealers.  SaskTel also purchased goods and service from more than 4,300 Saskatchewan suppliers contributing $364 million to the Saskatchewan economy.
• Capital expenditures were $233.6 million in 2006, reflecting the most aggressive capital program in SaskTel’s history.  SaskTel’s Next Generation Access Infrastructure (NGAI) program is aimed at enhancing infrastructure to deliver improved Internet Protocol (IP) services to both urban and rural Saskatchewan.  Since 1987, SaskTel has invested over $2.9 billion in infrastructure in Saskatchewan.
• Through the Community Investment Program, SaskTel contributed over $2.6 million to more than 1,300 non-profit and charitable organizations in Saskatchewan and the SaskTel Pioneers donated 74,941 hours and over $450,288 in supporting worthwhile community initiatives.
• Through SaskTel TelCare, the employees’ benevolent fund, $234,614 was donated, which is matched 50 per cent by SaskTel for a total of $351,921 to 90 Saskatchewan charities.
• In 2006, we continued to implement our new environmental strategy, “Eco(log)ical”, and this year alone SaskTel diverted more than 500,000 kilograms of waste from landfills, spared 7,500 trees from the pulpmill, saved 30,000 litres of water, and prevented 4,600 tonnes of greenhouses emissions.  
• In 2006, SaskTel either met or exceeded Representative Workforce targets with 25.5 per cent female representation in management, professional and technical positions, 37 aboriginal permanent hires and 23 permanent hires of people with disabilities.
• SaskTel’s excellence in customer service was reaffirmed by a study conducted by J.D. Power & Associates, a global market research firm.  In their Canadian Wireless Customer Satisfaction Study, the results ranked SaskTel highest in customer satisfaction for contracted wireless service for the second consecutive year.
• For seventh straight year, SaskTel was recognized as one of “Canada’s Top 100 Employers” by MediaCorp Canada Inc.

About SaskTel

Saskatchewan Telecommunications Holding Corporation (SaskTel) is the leading full service communications provider in Saskatchewan, offering competitive voice, data, dial-up and high speed Internet, entertainment and multimedia services, security, web hosting, text and messaging services, and cellular and wireless data services over its digital networks.  The Corporation also provides security monitoring services through SecurTek, directory services through DirectWest, in-room communications services to the healthcare sector through Hospitality Network, telecommunications consulting service through SaskTel International and an out-of-province sales and service channel in Alberta and British Columbia.  SaskTel and its wholly-owned subsidiaries have a workforce of approximately 5,100 full-time, part-time and temporary employees.  Visit SaskTel at www.sasktel.com.

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For more information, contact:

Andy Tate
SaskTel
Regina
Phone: 306-777-4548
Email: andy.tate@sasktel.sk.ca
Cell: 306-537-1226