BELIZE CITY, Fri. Nov. 24, 2023
Belize Telemedia Limited (BTL) today held its 17th Annual General Meeting (AGM) in a hybrid format, with shareholders participating virtually via Microsoft teams, and the Board of Directors and staff gathered at the Belize Olympic and Commonwealth Games Association facility off Princess Margaret Drive in Belize City. Dividends of 20 cents per share were declared, resulting in the Government of Belize as majority shareholder earning BZ$6.8 million from the total $11.8 million that will be paid out in dividends. BTL’s Chief Executive Officer, Ivan Tesecum, says the dividends for fiscal year ending March 2023 are 54% higher than last year when only 13 cents was declared. The return on equity (ROE) is cited at 9.9%. According to a 5-year projection, the Board of Directors expects the ROE to have increased to 12% by fiscal year ending in March 2026.
Speaking about the company’s performance, BTL chairman Markhelm Lizarraga commented, “This year has been marked by significant milestones and remarkable progress as we continue to evolve and shape the future of communications in Belize. In a rapidly changing and competitive landscape coupled with hardening, Digi has once again demonstrated its resilience, its adaptability, remaining at the forefront of innovation and customer-centricity.” Tesecum, in his presentation, reported revenue of $152 million, up from $141.3 million last fiscal year – an increase of 7.6%. Net income is reported at $21.6 million – an increase of 35%.
The directors of BTL have assured shareholders that the company’s prudent financial management and strategic investments have laid the foundation for its future growth.
Going into more detail, Tesecum highlighted an increase in demand for internet connectivity that helped to offset a decline in mobile revenue. Based on the numbers provided in BTL’s Annual Report, broadband customers grew this fiscal year by 6,000 to 37,000; and mobile customers increased by 4,200 up to 208,200. Tesecum shared that this is the trend globally. In line with those trends, BTL expanded its Fiber-to-the-Home Network with 14 new sites, and increased its mobile network by adding 18 new sites in fiscal year 2022/2023. Tesecum told Amandala that they are also planning to target traditionally unreached areas in the ongoing fiscal year 2023/2024. Fifteen new mobile sites and 7 Fiber-to-the-Home sites are planned. Those would provide connectivity to plug existing gaps on the Southern Highway, including to villages like Trio and Bladen. BTL also plans to provide connectivity through the Coastal Plains Highway. When those come onstream, BTL would have 170 mobile sites.
Tesecum also touted their discipline as regards operational costs in the face of inflation so as to assure a strong operating cash flow. Operating expenses went from $118.1 million to $123.1 million for fiscal year 2022/2023. BTL says the increase was the result of Hurricane Lisa restoration costs ($1.2 million), an increase in overall General Network Maintenance, and an increase in General and Administration costs of $2.8 million (featuring allowances, staff activities and advertising).
Looking to the future, Tesecum says they accept that BTL must be able to stay on top of a changing landscape in telecommunication. It therefore needs to diversify away from voice, data and SMS, which are considered the core telecom revenues. Tesecum revealed a breakdown in revenue for the fiscal year ended March 2023 of $71 million from the company’s fiber network and $58.8 million from its mobile network. Notably, in its Annual Report, BTL highlights that its mobile revenues have not yet returned to pre-COVID levels.
According to Tesecum, they have already started the diversification process with the introduction in August 2022 of their Home TV product (referred to as DigiTV) with over 140 local and international channels, and Digi Wallet, a payment platform (with a subscription base of 20,000 users, over 1,400 merchants and partnerships with GoB and UN Agencies to make “Financial Inclusion a Reality”). Tesecum explained that this makes Digi the only Quad Play provider in Belize, offering customers four services: home phone service, mobile service, internet and entertainment. BTL markets the package as DigiOne. BTL is also currently applying to upgrade to 5G capacity and has sought to import the equipment it will need.
During the business portion of the AGM, shareholders voted to re-elect Eric Eusey to represent minority shareholders on the board as a publicly elected director. He was the only nominated candidate. Voting also took place to decide whether HLB Belize LLP would be re-appointed as auditors of the company until the next AGM.
In an interview after the AGM, Chairman Lizarraga was asked about the decision of businessman Michael Bowen and attorney Denise Courtenay not to continue as Government-appointed directors on the board. Lizarraga said they cited that they were occupied in their own businesses. The Government as majority shareholder appointed Narda Garcia, CEO in the Office of the Prime Minister, and Arturo Vasquez to replace them.
We asked Lizarraga how their revenue was impacted by the switch in service of some government ministries from BTL to SMART (Speednet Communications Ltd.). Lizarraga described it as merely a couple of accounts that were lost and said it was not substantial. Besides, he remarked, “what it has done, it has forced us to focus on being competitive – which is healthy. And we have focused on putting bundles together that are attractive for our people. Our revenues have increased, as a matter of fact. We continue to do a lot of business with the Government of Belize. As a matter of fact, they might be one of our largest customers. But as individual ministries have been tasked as well to save money in their own ministries, we have to compete … and we have been competing.”
BTL, according to Tesecum, is capitalized at over $300 million and has some 500 employees. In its Annual Report, BTL’s total assets are cited at $343,570,000. For the previous year it was $350,429,000. Digi also reports that its overall employee satisfaction rating is at 77%—up 3% from last year. There are about 1,500 shareholders in BTL, and the Government holds 49.3% of issued ordinary shares. The Social Security Board holds 34.3% of issued ordinary shares. The Central Bank of Belize has an 8% shareholding, while small shareholders control some 9%.