Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Newcall Refocuses Its Activities In New Zealand

Group aims to increase its presence in the electricity retailing market

Freed of its New Zealand telecommunications business, NEWCALL Group Ltd is concentrating on building its remaining assets – electricity retailer Energy Online Limited, Singapore-based NEWCALL Communications Singapore (PTE) Ltd, and developing a specialised utility billing and CRM systems subsidiary.

“There is significant value tied up in these businesses and now that we no longer have the loss making and cash consuming activities of the New Zealand telecommunications arm, we intend making the remaining investments realise their potential,” says NGL Chief Operating Officer, Guy Pierce.

The group’s fourth asset business market-oriented ISP, Iprolink, is close to a deal with an offshore buyer.

Apart from NEWCALL in Singapore, which recently become only the second telco to be certified for technical compliance after signing interconnect agreements with both Singtel and Star Hub, NGL’s main focus in New Zealand will be on expanding Energy Online’s presence in the local electricity market says Mr Pierce.

NGL is issuing 1.250 million shares at a value of 0.40 cents each to EOL’s minority shareholders. This, he explains, is being done in accordance with the agreement signed when the holding company acquired 75 per cent of EOL in January 2000.

“We are under a contractual obligation to make an adjustment to the original purchase price on condition that certain profit and growth criteria were met by EOL. These were met last November and is reflected in the issue of the additional shares.”

Mr Pierce says the additional valuation of shares represents NGL’s confidence in EOL and its future performance. When the electricity retailer was acquired by NGL in January last year it had 300 customers. By December its customer base had grown to 10,000. Since then, says Mr Pierce, EOL’s customer base has increased a further 2000.

The group, he says, is conservatively estimating EOL’s value at this stage but
notes that the prevailing per customer value according to the market, as evidenced by the recent sale of Empower to Contact, would be in the $500 - $1000 range.

He says that EOL’s sales driven performance was achieved in a low-key fashion and without any consumer or profile building marketing or advertising. These aspects will now be addressed, and he predicts further strong and rapid growth with new customers coming mainly from areas within the North Island.

Mr Pierce also sees the possibility of taking EOL offshore, and says that as a first step NGL is in discussion with prospective joint venture partners to develop the Australian market.

NGL’s newest venture, will be to bring together the group’s billing expertise from both the electricity and telecommunications subsidiaries, and to market the product worldwide – again with a joint venture partner – as a specialised multi functional utilities billing and CRM tool.


© Scoop Media

Business Headlines | Sci-Tech Headlines


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>


Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news