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

 

TeamTalk shares slide 6.3% on profit warning, debt extension

TeamTalk shares slide 6.3% after profit warning on swap revaluation

By Paul McBeth

June 30 (BusinessDesk) - TeamTalk shares dropped 6.3 percent after the telecommunications company warned net profit will be hit by a revaluation of interest rate swaps and said it had reduced the size of its debt facility after extending the credit line for three years.

Wellington-based TeamTalk has lowered the value of its fixed interest rate swap portfolio due to "wholesale interest rates falling significantly in the period" and expects that will have a negative non-cash affect on the bottom line, it said in a statement. The company affirmed second-half earnings before interest, tax, and depreciation will be "a bit ahead" of the $6 million reported in the first half. The shares fell 5 cents to 75 cents.

TeamTalk also refinanced its debt facility with Westpac Banking Corp, reducing the total size to $40 million and pushing out the maturity date until Dec. 31, 2018, "on broadly the same terms and conditions."

"Reflecting lower current debt levels, this facility still provides sufficient headroom and flexibility to pursue targeted investment in infrastructure expansion," it said.

The company cut its profit expectations when reporting its first-half earnings in February, with weak cash generation and higher than expected debt levels.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Super Fund/Canada Bid v NZTA: Tow Preferred Bidders For Auckland Light Rail

The two preferred delivery partners for Auckland light rail have been chosen and a final decision on who will build this transformational infrastructure will be made early next year, Minister of Transport Phil Twyford announced. More>>

ALSO:

9.3 Percent: Gender Pay Gap Unchanged Since 2017

“While it has remained flat since 2017, the gender pay gap has been trending down since the series began in 1998, when it was 16.2 percent,” labour market statistics manager Scott Ussher said. More>>

ALSO:

Ex-KPEX: Stuff Pulls Pin On Media Companies' Joint Ad-Buying Business

A four-way automated advertising collaboration between the country's largest media companies is being wound up after one of the four - Australian-owned Stuff - pulled the pin on its involvement as part of a strategic review of its operations ... More>>

Bus-iness: Transdev To Acquire More Auckland And Wellington Operations

Transdev Australasia today announced that it has agreed terms to acquire two bus operations in Auckland and Wellington, reaching agreement with Souter Investments to purchase Howick and Eastern Buses and Mana Coach Services. More>>

ALSO: