TeamTalk’s results for the year to June 2010, released on the NZX today, show that its acquisition of CityLink in 2006 continues to bring benefits.
However, installation revenue from the Wellington fibre provider was down by $400,000 compared to last year.
In the NZX statement, TeamTalk says the revenue from CityLink was “lower than anticipated, as a number of customers deferred some significant projects”.
Despite the downturn in installation revenue, maintenance revenues grew.
“Monthly recurring revenues, which are the real driver of the business, grew by 15 per cent over the year,” the NZX statement says.
“This continued growth in the underlying business meant EBITDA from the core CityLink business was up 6 percent compared with the previous year.”
The increase in maintenance revenues was offset by CityLink’s investment in pitching for the government’s ultra-fast broadband project.
“In reported terms however, EBITDA was down as CityLink invested $0.25m in its bid to partner with the government on its Ultra-Fast Broadband (UFB) initiative.”
TeamTalk operates two divisions, mobile radio and broadband.
Its overall net profit for the 2010 year was $3,838,000, down 3.3 per cent on last year’s result of $3,968,000.