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

 

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news