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

 


TeamTalk lifts first-half profit 27%, signals lower dividend

TeamTalk boosts first-half profit 27%, signals lower dividend to fund rural broadband expansion

By Paul McBeth

Feb. 26 (BusinessDesk) - TeamTalk, which bought the rural telecommunications provider Farmside in 2012, lifted first-half profit 27 percent, and plans to trim dividend payments from October to fund expansion into rural internet services.

Net profit rose to $2.16 million, or 7.6 cents per share, in the six months ended Dec. 31 from $1.7 million, or 7.2 cents, a year earlier, the Wellington-based company said in a statement. The gains came from its mobile radio and broadband units, while its Farmside rural service continued to lag, and it plans to scale back future dividend payments to help fund expansion in the rural sector as a network operator and retailer.

“Although the Farmside acquisition has not met our short-term expectations we remain very confident in its future,” managing director David Ware said. “We are seeing modest revenue upturn and expect an increase in profitability to follow.”

From October TeamTalk will cut its annual dividend to 15 cents per share in two equal instalments, from 20 cents previously. The board declared a 10-cents-per-share interim dividend today, payable on April 11 with an April 4 record date.

In December, TeamTalk said it expected to maintain its current dividend in 2014, with earnings growth to gather momentum in the second half of the financial year.

The company boosted revenue 77 percent to $29.5 million in six-month period from a year earlier, and increased earnings before interest, tax, depreciation and amortisation 51 percent to $7.7 million.

The mobile radio unit lifted external sales 2.3 percent to $8.5 million and boosted EBITDA 24 percent to $1.5 million, while the broadband unit increased external revenue 1.6 percent to $7.6 million, with a 5 percent gain in earnings to $3.9 million.

The internet service provider unit’s sales surged to $13.6 million from $997,000 a year earlier, while boosting EBITDA to $2.2 million from $247,000.

TeamTalk’s operating cash flow climbed to $3.7 million in the half from $1.7 million a year earlier, leaving the company with cash and equivalents of $968,000 as at Dec. 31.

The shares fell 1.4 percent to $2.15.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news