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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Hepatitis A Link: Increased Surveillance Of Imported Frozen Berries

The Ministry for Primary Industries (MPI) Director General has issued a statement warning of a potential risk associated with imported frozen berries following four human cases of Hepatitis A thought to be linked to packaged imported frozen berries. More>>


Shocking Dairy Footage: MPI Failing Our Animals And Damaging Our Reputation

Greens “Nathan Guy needs to urgently look into how his ministry is enforcing animal welfare standards, how these appalling incidents happened under its watch and what it’s going to do prevent similar incidents happening again in the future." More>>


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news