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

 


TeamTalk posts full-year loss on Farmside charge

TeamTalk posts full-year loss on Farmside charge that threatened covenants

By Jonathan Underhill

Aug. 27 (BusinessDesk) - TeamTalk, the listed telecommunications company, posted a full-year loss after writing down goodwill on its Farmside rural unit, a charge that required the cooperation of its lender to avoid a covenant breach.

The loss was $8.3 million in the year ended June 30, from a profit of $3.6 million a year earlier, the Wellington-based company said in a statement. Sales jumped 31 percent to $60.3 million. Excluding the impairment and tax, earnings fell to $3.8 million from $5.4 million as expenses rose.

TeamTalk acquired Farmside Group to extend its rural reach, adding to businesses including its CityLink fibre-optic broadband service. But costs to integrate Farmside eroded earnings in 2013 and in today's announcement the company said it "under-estimated the difficulty in building a strong, experienced management team in what is a very dynamic market" and faced a challenge from the government's rural broadband initiative.

The impairment charge would have triggered a breach of the company's banking covenants as at June 30 but TeamTalk said it kept Westpac Banking Corp informed and the bank agreed not to include the charge in its earnings calculation for compliance. Still, the impairment did mean TeamTalk had to present its $34.6 million bank loan as a current liability.

Across the company's other businesses, mobile radio earnings before interest and tax fell to about $1.5 million from $1.67 million, while broadband Ebit rose to $5.97 million from $5.3 million.

The company will pay a dividend of 7.5 cents, making 17.5 cents for the year. The shares fell 4.1 percent to $1.63 and have dropped 23 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news