Telecommunications group KeyTech Ltd posted an $8 million operating profit in its latest six-month earnings results, as revenue shot up by nearly a third.

The company attributed the improvement to its transaction with US firm ATN International, which took a 51 per cent interest in KeyTech earlier this year.

KeyTech, which owns the One Communications brand comprising the operations including those formerly known as Logic Communications, CellOne and Bermuda CableVision, said subscriber growth in Bermuda and Cayman helped to boost data revenues by $1.9 million.

The company also reported television revenues that were down by $1.6 million — evidence of “cord cutting” by subscribers, who opted for online video content instead of TV, KeyTech said.

Operating profit of $8 million for the six months ended September 30 this year compared to a loss of $1.7 million in the corresponding period last year. KeyTech’s revenue surged to $61.1 million, up from $46 million in the same period in 2015.

KeyTech’s deal with ATN resulted in the company acquiring full ownership of Bermuda Digital Communications Ltd, or CellOne, and $41.6 million in cash.

“As a result of this transaction, the company has recorded an estimated $22 million gain on the resulting full consolidation of the company’s wireless business, measured at a provisional amount based on management’s preliminary estimate of fair value,” KeyTech stated.

“Our six months results already start to highlight for shareholders the benefits we expect to see from our strategic transaction with ATN,” Frank Amaral, chief executive officer of KeyTech, said.

“The operational efficiencies and stronger balance sheet gained from the transaction put us in a great position to invest in and expand our networks to improve value both for customers and shareholders as a streamlined fixed and mobile provider.

“To highlight our new position and strategy heading into the next year, we launched a new, unified brand for all of businesses operating under the ‘One Communications’ name in November. We look forward to putting the new investment in the company to work revamping our operations under this new name to better serve our residential and business clients.”

Operating expenses rose to $53.1 million, up from $47.7 million in the prior-year period.

KeyTech said the increase in expenses was “related to the increased support needed for the full consolidation of the company’s wireless business”.

The company added that it retired all of its subordinated debt of $24.7 million as part of the transaction with ATN and reduced its remaining long-term debt by $3.2 million during the period.

A one-time dividend of $11.4 million, or 75 cents per share, was paid during the period, as part of the ATN transaction.

Earnings per share for continuing operations for the half-year were 64 cents compared to 3 cents in the same period last year.

KeyTech will be changing its reporting year end from March 31 to December 31, effective December 31, 2016, the statement added.