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

 

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news