Tonga Communications Corp. Reports Profits For 2011-2012

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One-quarter of profits will be paid to government as dividends

NUKUALOFA, Tonga (Matangi Tonga, July 3, 2013) – The Tonga Communications Corporation (TCC) announced a net profit of TOP$1.7 million [US$917,629] for the last financial year for 2011-12 and will pay the government a 25% share in dividends.

TCC, Tonga’s national and government owned telecommunication’s company, stated that despite years of setbacks in the wake of the global economic crisis and intense competitions, it had made a comeback with favorable results for its financial year ending 30 June 2012.

"The company achieved a net profit of TOP$1.7 million during the year out of which TCC declared and paid a 25% dividend, TOP$416,631 [US$224,890], to the government. It has been a remarkable turn-around for the company in contrast to a balance sheet that showed a loss of TOP$2.68 million [US$1.4 million] from previous years."

During the year TCC had invested millions of pa’anga in the establishment of Tonga Cable Ltd. "The new fiber-system will provide faster internet connection to Tonga via a submarine cable," it stated.

According to the TCC, despite its profit gains, the government dividends could have been higher.

"TCC not only has reversed the status of the balance sheet and attained profitability, but it has also made significant investment in the network and services to the people of Tonga… This payment of dividend is the first since 2010, and the amount paid could have been much higher if not for the year to date investment of $8 million pa’anga [US$4.3 million] in Tonga Cable Ltd."

Tonga Communications Corporation is the largest public enterprise in Tonga and claims an asset base of over $45 million pa’anga [US$24.3 million] and employs 275 people.

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