Fiscal boost

With record revenue topping $131 million in 2010, TBayTel is giving the city back $20.5 million to boost its coffers.

The municipally owned utility on Thursday announced a pair of dividends, the first the annual $17 million stipend it pays the city, the second a $3.5 million special contribution that will be directed to the Renew Thunder Bay Fund.

Company CEO Don Campbell said year-end numbers are a clear indication the company is moving in the right direction, having boosted its fortunes in 2010 with the addition of digital television, an HSPA network and a partnership agreement signed with Rogers Communications that delivered the multinational’s customers to TBayTel in return for network access.
 
“We had a good year. We had a lot of effort by our employees and as a result of that our revenues are up and the dividend to the owner is up,” Campbell said. 

City manager Tim Commisso said the annual dividend helps the municipality lower its tax rate about 12.5 per cent lower than it would be without the dividend.

He added the $2.5 million special dividend ups the Renew Thunder Bay Fund to about $27 million, money being set aside to pay for major capital projects like a proposed new multiplex facility and the widening of the Golf Links Road corridor.
 
The final piece of the puzzle, the $1.1 million performance payout, will likely also be used to cover infrastructure costs, Commisso said, adding through a dividend policy, the city receives 25 per cent of any profits over and above projections.

“That last component will actually go into a TBayTel dividend reserve fund and then really it’s up to council in terms of how they want to utilize the money,” Commisso said. “In the past we’ve used it when we’ve had an opportunity to perhaps take advantage of provincial-federal funding. It’s money that’s there.”

Campbell said he expects the company to continue its growth trend, thanks in part to emerging markets that are re-shaping TBayTel’s corporate identity. 

“This is the first year where our revenue and subscribers for wireless and Internet have exceeded telephone, so we’re truly an Internet and wireless company now,” Campbell said.

“This whole new world of wireless and Internet access and TV and all the content that flows on those mediums is really growing. It’s transformed the company.”
 
The company’s $131.09 million in revenue represents a $4.05-million increase over 2009. TBayTel employs 404 people, up 16 over 2009 and spent more than $28 million in salaries last year, an increase of more than $1.8 million.