SaskTel Reports Net Income of $95.4 Million

Released on July 8, 2024

SaskTel today reported its financial results for the 2023-24 fiscal year including net income of $95.4 million and operating revenues of $1,351.4 million. These results demonstrate SaskTel's ongoing dedication to offering competitive services in the province and to connecting Saskatchewan people by enhancing their networks.

“In 2023-24, SaskTel invested $368.5 million of capital to connect more Saskatchewan communities to SaskTel’s infiNET and 5G networks,” Minister Responsible for SaskTel Dustin Duncan said. “This significant investment ensured more Saskatchewan families and businesses could take advantage of the economic and quality of life improvements that come along with enhanced connectivity.”

"As part of our ongoing commitment to our customers and province, SaskTel invested more into its wireless and infiNET networks this year than ever before," SaskTel President and Chief Executive Officer Charlene Gavel said. "With these investments, we expanded our networks to continue to provide customers with a fast, reliable experience, and the power to leverage smart technology and thrive in today's digital world."

SaskTel's revenue is composed primarily of wireless network services and equipment revenue (49 per cent), fixed broadband and data (23 per cent), wireline communications (11 per cent), and maxTV service (7 per cent).

Connecting in a crisis

This year, SaskTel helped those in our province impacted by crisis happening in the province and abroad. 

To support those who were impacted by wildfires in Northern Saskatchewan in spring 2023, SaskTel waived all data overage charges for customers living in Buffalo Narrows, Buffalo River Dene Nation, Dillon, English River First Nation, La Loche, Michel Village, Patuanak and St. Georges Hill. SaskTel also waived charges for customers who experienced service outages for their Home Phone and Internet services for the duration of the outage.

SaskTel waived text message fees and long-distance charges for SaskTel wireless, landline and business calls made from Canada to Israel to ensure customers could connect with family and friends.

Financial Highlights

SaskTel's financial measures highlight shareholder value, revenue and earnings generation, and effective use of its capital investments. These measures offer valuable insight into its current financial performance and overall enhancement of its long-term financial stability.

SaskTel declared dividends of $38.2 million to Crown Investments Corporation during the fiscal year ending March 31, 2024, while maintaining a debt ratio within industry standards. 

At the close of the fiscal year 2023-24, SaskTel's debt ratio increased to 56.0 per cent, an increase of 150 basis points from the previous year. The overall level of net debt increased $157.6 million, primarily to fund continued investment in the fibre and 5G networks through investment in property, plant and equipment, and intangible assets.

Revenue for the fiscal year was $1,351.4 million, an increase of $21.3 million reflecting growth in key business segments including wireless network services and equipment, fixed broadband and data. The increase in wireless network services and equipment revenue reflects SaskTel's expanding customer base and ongoing demand for high-quality wireless devices. Fixed broadband and data services revenue growth was driven by increased customer demand for higher speeds. Customer premise equipment sales growth was a result of higher demand for business grade equipment.

SaskTel invested $368.5 million of capital in 2023-24 to bring SaskTel infiNET - service to more homes and businesses and grow the reach of its 5G wireless network. These investments enhance the reliability and resiliency of SaskTel's networks and position Saskatchewan for success in the smart economy.

Wireless spending, including 5G, LTE, and Wi-Fi, accounted for $150.6 million of the $368.5 million total, while $106.4 million was invested in SaskTel's Fibre-to-the-X program (FTTx). These significant investments, along with the rest of the capital expenditures, have enhanced SaskTel's systems and networks, our provincial economy and will prepare Saskatchewan to thrive and succeed in a developing smart economy.

SaskTel's wireless network covers over 99 per cent of the population with more than 1,000 cell towers, over 700 of which are in rural parts of the province. As of March 31, 2024, SaskTel had converted 481 wireless sites to the 5G network, serving 77.5 per cent of the province's population with 5G. As this network evolves, it will support the development of smart communities and technological innovations in agriculture, virtual health care, immersive education and many others.

SaskTel's FTTx program continued to bring infiNET, SaskTel's fibre optic network, to homes and businesses across the province. infiNET delivers up to gigabit per second speeds, allowing customers to surf, stream and share more content faster than ever before. As of March 31, 2024, the network was available in 52 communities.

In 2023-24, SaskTel also continued to make a social impact in our province through numerous sponsorships and partnerships as well as the generosity of SaskTel employees.

SaskTel contributed $2,962,903 to 1,018 non-profit and charitable organizations, community associations, venues, events and partnerships in more than 237 communities throughout the province during the 2023-24 fiscal year. 

At a time when charities and non-profits are seeing growing demand for services, SaskTel's employees showed their dedication by making a positive difference in their communities through volunteer hours and donations. With over 3,700 members, including current and retired employees, SaskTel Pioneers contributed over 34,000 volunteer hours and $211,079 in donations to non-profit organizations. SaskTel TelCare, the employee-driven charitable donation program, donated nearly $180,000 to 42 charitable and non-profit organizations operating across Saskatchewan, a number which includes SaskTel's 50 per cent match.

SaskTel also continues to do its part to support Saskatchewan-based business and choosing suppliers that provide best value for factors that include experience, technical knowledge and local economic impact. In 2023-24, more than 69 per cent of SaskTel suppliers were sourced from Saskatchewan. 

About SaskTel 

SaskTel is the leading Information and Communications Technology (ICT) provider in Saskatchewan, with over $1.3 billion in annual revenue and approximately 1.4 million customer connections including nearly 670,000 wireless accesses, 242,000 wireline network accesses, 292,000 internet and data accesses, 111,000 maxTV service subscribers, and 72,000 security monitoring customers. SaskTel and its wholly-owned subsidiaries offer a wide range of ICT products and services including competitive voice, data and Internet services, wireless data services, maxTV services, data centre services, cloud-based services, security monitoring services, advertising services and international software and consulting services. SaskTel and its wholly-owned subsidiaries have a workforce of approximately 3,300 full-time equivalent employees (FTEs). Visit SaskTel at www.sasktel.com.

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