M2 Expands into New Zealand with Telecom
M2 Expands into New Zealand with Telecom NZ Agreement
Melbourne, Jan. 24/MediaNet International-AsiaNet/ --
Fast growing listed telco, M2 Telecommunications Group Limited (ASX: MTU) has taken another step in its continuing expansion, with the launch of its New Zealand operation (M2NZ Limited), based in Auckland.
A key part of the entry into the Kiwi market was M2’s signing of a Wholesale Services Agreement last week with Telecom New Zealand Limited, a subsidiary of Telecom New Zealand Corporation (ASX: TEL).
Vaughan Bowen, M2’s Managing Director said of the move into New Zealand; “For over a year we have been working on pulling together all the necessary elements to enter the NZ market and make a sizable impression.
The Wholesale Services Agreement with Telecom New Zealand is quite a coup and required M2 to meet various criteria. M2’s strong financial position and our proven track record in Australia were certainly important contributing factors.”
continued; “New Zealand is a similar market in many ways to
Australia, but also presents a number of unique
opportunities so we are very excited about the scope for
growth.” M2’s unique small to medium enterprise (SME)
service offerings such as its Phone & Fly® marketing
Travelscene American Express and its Barter Telecoms® program are amongst several programs which will be immediately introduced to the market through M2’s New Zealand operation.
To support M2 in its NZ expansion plans and to aid in the development of a national dealership and agency sales network, a marketing agreement has been entered into with local specialist telco marketing business, The Phone Company Limited.
In late 2005, M2 was named as one of Australia’s fastest growing companies for the third consecutive year (BRW “Fast 100”) and for the second year on the Deloitte “Fast 50”.
M2 shares closed at 26 cents yesterday representing a modest Price/Earnings multiple of 8. The Company has been consistently profitable since 2002 and paid a franked dividend for the 2004/5 financial year which equates to a dividend yield of 9% based on yesterday’s closing share price.