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


2degrees shareholders still pumping in funds

2degrees shareholders still pumping in funds

By Paul McBeth

Sept. 9 (BusinessDesk) – Shareholders in mobile operator Two Degrees Mobile Ltd. are still injecting new cash, with another three issues between June and August.

Trilogy International New Zealand LLC, Tesbrit B.V. and Hautaki Trust bought 20 million shares at US$1 apiece in three separate tranches, according to documents lodged with the Companies Office, keeping the company afloat as it continues to work towards profitability.

That takes this year’ equity injection to US$44.3 million via six share issues, almost matching last year’s US$44.5 million, when the shares were issued at 75 U.S. cents each.

Corporate affairs manager Mathew Bolland told BusinessDesk the “contributions are to plan” and the phone operator is tracking its business case that will ultimately lead to profitability.

“What you’re seeing at the moment is the shareholders helping us basically fund the business,” he said. “It’s a market with over $2 billion in revenue.”

In June, 2degrees reported a loss of $76.8 million in the 12 months ended Dec. 31 as it continues to build its share in the market, posting gross profit of $38.2 million on sales of $107.6 million. In March, the mobile operator said it cornered about 11% of the market with 580,000 customers.

Hautaki kept its shareholding at 10.3% in the latest issues, while Trilogy holds just over 57% and Tesbrit’s stake was 28%. In July, the company’s board approved an employee share scheme.

2degrees grew out of a controversial government decision 10 years ago to give Maori the right to buy a third generation radio spectrum frequency at a discounted price. The remaining life of the spectrum management rights is about nine years.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Air New Zealand: Employees Recognised With $1,000 Share Award

The efforts Air New Zealand employees made during one of the airline’s toughest years will be recognised via an award of $1,000 worth of company shares to all permanent employees... More>>

Consumer NZ: Bank Complaints On The Rise, Survey Shows

Nearly one in five Kiwis had a problem with their bank in the past year, Consumer NZ’s latest satisfaction survey finds. Consumer NZ chief executive Jon Duffy said the number of bank customers reporting problems had jumped to 18%, up from 11% in 2020... More>>

Federated Farmers: Applauds UK-Australia Free Trade Deal

News that Australia and the UK have signed a free trade agreement is a promising step forward in the fight against tariffs and protectionism, Federated Farmers says.
"It reinforces the international rules-based trading framework and is important for rural producers and global consumers," Feds President Andrew Hoggard says... More>>

ASB: New Zealanders Missing Out On Hundreds Of Millions In KiwiSaver Government Contributions

New Zealanders have just over a week to ensure they’re eligible for the maximum annual government KiwiSaver contribution... More>>

Stats NZ: GDP Climbs 1.6 Percent In March 2021 Quarter Following December Dip

Gross domestic product (GDP) rose by 1.6 percent in the March 2021 quarter, following a 1.0 percent fall in the December 2020 quarter, Stats NZ said today. "After an easing of economic activity in the December quarter, we’ve seen broad-based growth in the first quarter of 2021... More>>

Reserve Bank: Debt Serviceability Restrictions Added To Policy Toolkit

The Reserve Bank – Te Pūtea Matua and the Minister of Finance have agreed to update their shared Memorandum of Understanding (MoU) on macro-prudential policy and add debt serviceability restrictions to the list of potential tools available... More>>