Winnipeg-based Exchange Income Corporation (EIC) announced today that AT&T renewed its contract with EIC’s WesTower subsidiary for a three-year period.
WesTower installs and updates cell phone towers across North America and has a massive contract - called a turf contract - with AT&T.
WesTower generated $167.6 million in revenue in the second quarter this year and was responsible for more than 60 per cent of EIC’s revenue in the period.
The operation has struggled to generate strong profit margins and EIC has undertaken a large-scale re-engineering of the operation to make it more efficient.
Mike Pyle, cheif executive officer of EIC said, "This is another step forward in the progression of WesTower. We have invested considerable time and capital into our ability to perform under this contract and we are excited to continue to deliver our services to this important customer."
EIC shares were up 69 cents this morning to $20.60.