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TELE-POST Cheaper internet and great annual result

28/04/2020 - 15:07

 

Even though TELE-POST faces new threats and the accompanying increased need for security, through a strong team effort and optimization of the company, an annual result of 120.1 m

io. kr. before taxes has successfully been achieved. That is why TELE-POST is now lowering rates on internet markedly.

Lower internet prices for private customers

A very satisfying annual result now makes it possible for TELE-POST to deliver markedly cheaper internet rates. The price of a private Tusass 30/5 internet subscription is lowered by 25% from 1,199 kr. to 899 kr., while a 10/2 subscription is lowered by 27% from 1,099 kr. to 799 kr. Additionally, the speed of a 2/1 Mbit subscription is increased to 5/1 at the same rate of 499 kr.

CEO at TELE-POST Kristian Reinert Davidsen elaborates:

- In Greenland, we have invested in cost heavy telecommunications infrastructure on barren mountaintops and in deep fiords that makes it possible for 92% of the population to have access to Tusass internet and flat rate products. We know that many prioritize being a part of the digital development in their private budgets, and we are working hard to bring more onboard. That is why we are happy that we are now able to lower rates and increase speeds in a time, when the internet has particular importance to our customers.

More security for corporate customers

During the last year, the corporate customers have experienced sea cable tears, increased cybercrime threats and now a Corona-crisis that changes everything. The corporate customers are – in contrast to the private customers – deeply dependent on solutions that work in a changing world of new threats. One of TELE-POSTs most important jobs is thus to offer complete solutions for the corporate customers that protects them as much as possible.

Corona-contribution proposed to the general assembly as extraordinary dividend

The company’s solid economy now creates the opportunity to alleviate some of the Corona-crisis negative consequences to society with a further extraordinary dividend of 25 mio. kr. for the shareholder – The Self-rule Government – Chairman of the Board, Stine Bosse, speaks to this:

- Even though we were hit by several sea cable tears last year, due to good business acumen and hard work, we now have the opportunity to make a contribution and reduce the negative economic impact of the Corona-crisis while at the same time giving our customers lower internet rates. A unanimous Board of Directors has thus decided to propose an extraordinary dividend of 25 mio. kr. to the general assembly.

The proposed extraordinary dividend related to the Corona-crisis will be paid with the ordinary dividend, if the Greenlandic Government approves the proposal at the company’s general assembly.

Sea cable tear and dividend

A year ago, TELE-POST did not expect to deliver another large surplus due to three different sea cable tears. However, due to an optimization of the company, the management has successfully implemented the simplification strategy. This means that the negative economic effect of the sea cable tears has been limited. In spite of sea cable repairs, the company has been brought through 2019 successfully with a very satisfying annual result of 120.1 mio. kr. before taxes.

Last year, the company had expected to reduce rates to benefit the customers, but as several sea cable tears hit, the company decided to scale back and show restraint in an unknown situation, until the cost of the sea cable repairs was known. The sea cable repairs affect the result negatively with 53.9 mio. kr. in 2019 and 71.6 mio. kr. in total.

TELE-POST will deliver a total dividend of 87.6 mio. kr, of which the 50 mio. kr. in extraordinary dividend is due to the large infrastructure investment in the country.

The Greenlandic Government is TELE-POSTs only shareholder.

 

For further comments, please contact Head of Communications at TELE-POST, Julie Rademacher, at

kommunikation@telepost.gl or cell phone +299 263535.