KeyTech boosted its profits by more than $5 million and its total revenue by $3.1 million to $108.5 million, driven by growth in its data, cellular and fixed wireless business.

Net income for the year ending March 31, 2008, was $14.6 million up from $9.2 million the prior year.

Returns to shareholders increased and the company strengthened its strategic position as it strove to enhance data services to offset declining local voice revenue, according to its latest results statement.

It is also bidding to invest more in wireless and wire line technologies to provide new and more competitive products and services, as well was establishing its place in the Cayman Islands market.

"Although diminishing fixed-line local voice revenue is consistent with global industry trends, our diversified service offerings allow us to continue to grow revenue from rising business and residential customer demands for data and wireless services," said KeyTech chief executive officer Sheila Lines.

Operating expenses for 2007/08, excluding amortisation expenses, were $600,000 lower year over year, due to expense management and minimal windstorm or hurricane damage to plant and facilities. Amortisation expenses decreased $1.3 million from fiscal year 2006/07, largely resulting from the full depreciation of certain capital assets. In total, expenses dropped $1.9 million to $95.5 million.

During the financial year KeyTech invested $24.8 million in capital assets, to maintain existing plant and improve its networks in Bermuda and Cayman and also support provision of new services. During the prior year KeyTech invested $21 million in capital assets.

"Operational investments which reduced net income in 2006/07, the launch of M3 Wireless' easyConnect service and the preparatory work for a new submarine cable to Bermuda, have delivered results in 2007/08" reported KeyTech chief excutive officer Sheila Lines.

In July 2006, M3 Wireless introduced easyConnect, a wireless broadband service and during 2007/08 easyConnect revenue rose to $1.2 million, or 300 percent over the prior year.

In December 2007, KeyTech, together with its consortium partners Transact Ltd. and North Rock Communications Ltd., were successful in their bid before the Ministry of the Environment, Telecommunications and E-Commerce to acquire a Class A licence. The licence will allow the consortium to build and operate a new submarine cable between Bermuda and the US. Construction of the system is now well under way with an expected completion date during KeyTech's fiscal year to March 31, 2009.

During the past year, BTC developed plans to migrate its circuit-based voice network to a packet-based (or Internet protocol) next generation network platform. The first phase of the implementation is under way and the target date for commercial product launch is the fourth quarter of fiscal 2008/09.

Meanwhile M3 Wireless will complete its deployment of a WCDMA/3G network technology in the summer of 2008. This third generation (3G) network will offer mobile customers higher data speeds and enhanced roaming capabilities.

"We believe that providing exceptional customer service across all our businesses is fundamental to being able to retain our customers, grow our market share and continue to increase our revenue" said Ms Lines. "In 2007/08 we undertook in-depth customer satisfaction research to better understand what our business and residential customers expect from our companies and to measure how well we are performing against those expectations.

"Although our results show customer satisfaction levels on par with those reported for the largest telecommunications companies in North America, our objective is to better our performance year over year. With that in mind, each of our operating companies will develop and execute action plans in 2008/09 to improve customer satisfaction."

Contribution to net income from affiliates improved by $400,000 in 2007/08 to $500,000 primarily due to improved results from Bermuda CableVision. Bermuda CableVision settled a long-running copyright dispute with the Performing Rights Society, which resulted in a one-time charge to earnings from affiliates of $300,000 million in the prior year.

Total cash dividends paid to common shareholders for the year was 60 cents per common share, the same level as in the prior year. At the end of the year, net assets per common share were $10.96, increased from $10.30 in the prior year.

The dividend for the common shareholders of KeyTech for the quarter ending June 30, 2008 will be 15 cents per share. A one-for-10 share dividend for the holders of the common shares has been declared and will be issued fully paid at the end of July.

KeyTech's earnings per common share for the year were up at $1.10 from $0.69 in the prior year.