Telecoms firm KeyTech has posted a near $20 million loss for the six months to the end of September last year.

KeyTech made a profit of $6.4 million in the same period the previous year — but the firm said the sale of phone company BTC had hit the bottom line.

Earnings per share for the six months to September 30, 2014 was a loss of $1.31 compared to earnings per share of 34 cents for the same period the year before.

KeyTech CEO Lloyd Fray said the firm had bought BOTCAT Holdings in the Caymans — which increased its share of Bermuda CableVision, which meant that regulators insisted the firm sell off BTC to avoid KeyTech having a controlling interest in both residential access providers at the same time.

Mr Fray said: “We are committed to positioning the KeyTech group as the market leader for the 21st century.

“The telecommunications landscape has changed dramatically over the last decade and customers now demand high speed bandwidth to support increased lifestyle applications.

“The group has been hampered by legacy on-Island networks and cost prohibitive off-Island capacity which prompted KeyTech to build the Challenger subsea cable system in 2008.

“The BOTCAT acquisition is a continuation of this strategy for on-Island future-proofed networks in both Bermuda and Cayman.”

Operating revenues for the period were $39 million. Declines in data and voice revenues reflect the sale of BTC and the price adjustment for Logic’s residential internet service provider service in October, 2013 compared to the prior period. Bermuda Yellow Pages revenues declined as the market for directory and digital media sales remained weak. Fixed data revenues and other revenues increased from the acquisition of WestStar in Cayman.

Total operating expenses increased $0.5 million. One-time expenses related to the sale of BTC and the acquisition of BOTCAT totalled $1.8 million. Other expense decreases relate to the disposal of BTC.

KeyTech’s long term debt increased by $44.1 million to acquire BOTCAT and there is a loan receivable for $5.0 million from the sale of BTC.

KeyTech reduced its liability related to current and future pension obligations for BTC’s defined benefit plan by $4.3 million as BTC retained this liability.