TeamTalk confident of weathering global storm
6 November 2008
For immediate release
TeamTalk confident of weathering global financial storm
Shareholders at TeamTalk’s AGM today were told that on the back of a record year the company was well positioned to see out the economic contraction.
``Our revenue was at its highest point ever, earnings before interest and depreciation were also at the highest point, as was profit after tax,’’ said Managing director David Ware.
Revenue increased 25.8% over the previous year to $30.9 million and profit for the period increased 13.3% to $4 million.
CityLink continued to grow at around 20%, while expanding it’s high speed fibre-optic network, this year adding a link to Petone. ``But for me the key point is that the majority of that capex required for this growth is directly tied to new revenue and new customer contracts. This means if there’s no customer contract in place, then there’s no capital investment,’’ Mr Ware told shareholders.
TeamTalk’s high-speed wireless company Araneo was struggling to cope with demand having signed some significant new customers over the period.
Mr Ware said the listed telecommunications company expected at some stage the number of connections would contract as the freight sector felt the pinch, but that the company was diversified and in good shape to weather the global storm. ``Overall I think the company is well-positioned. We’re fit, we’re tough and we’re ready.’’