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


2degrees shareholders dip into their pockets again

2degrees shareholders dip into their pockets again

By Paul McBeth

Nov. 10 (BusinessDesk) – Shareholders in Two Degrees Mobile have dipped into their pockets again, pumping a further US$11 million into the country’s newest mobile phone operator last month.

Trilogy International, Tesbrit and Hautaki Trust subscribed for 9.17 million shares at US$1.20 apiece on Oct. 21, according to documents lodged with the Companies Office, taking this year’s capital injection to US$62.5 million through eight separate issues.

The price in the latest sale is well above the 75 US cents price the shares were issued at last year when the three cornerstone investors pumped in US$44.5 million.

In September, 2degrees corporate affairs manager Mathew Bolland said the contributions were part of the company’s plan and that it’s on track to reaching profitability.

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 percent of the market with 580,000 customers.

Since then, customer number updates from the dominant players Telecom and Vodafone New Zealand show 2degrees has continued to eat into their market share as the larger rivals lose customers.

Hautaki kept its shareholding at 10.3 percent in the latest issues, while Trilogy holds just over 57.7 percent and Tesbrit’s stake was 28.3 percent. 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


Energy Resources Aotearoa: Doubling Of Coal Use Shows Need For Local Natural Gas

New figures showing a near doubling of coal-fired electricity generation highlight New Zealand’s energy shortage and the need for natural gas as a lower carbon alternative, according to Energy Resources Aotearoa... More>>

E Tu: ‘Sense Of Mourning’ As Norske Skog Mill Set To Close

Workers at Norske Skog’s Tasman Mill now know they’ll be losing their jobs in little over a month’s time.
On Wednesday afternoon, workers were told the mill will be stopping production from the end of June... More>>

Stats NZ: Card Spending Sees Strong Growth In May

Seasonally adjusted card spending rose by $189 million (2.3 percent) between April 2021 and May 2021, Stats NZ said today.
Spending rose across all industries for the first time since New Zealand moved to level 1 in June 2020... More>>

Catalist: NZ’s New SME Stock Exchange, Gets Licence To Go Public

New Zealand has a new stock exchange – designed specifically for small and medium-sized businesses (SMEs) to raise up to $20 million a year from the public.
Called Catalist, the exchange has already been successfully working the private investment sector.... More>>

E-Commerce: Over 40% Of Those Engaged In The Bitcoin Community Are Millennials

Bitcoin has emerged to be a popular topic among millennials with digital currency increasingly being viewed as a potential source of creating wealth through investments. The interest in bitcoin by millennials signals the role this age group plays in the possible realization of the digital currency’s mass adoption... More>>

Stats NZ: New Zealand Is Getting Drier

While there is natural variation in precipitation due to seasons and cycles, New Zealand appears to be getting drier, Stats NZ said today... More>>