NZX listed telco TeamTalk has reported an after tax profit of $5.12m for the year to 30 June following a loss of $1.31m for the prior year. Revenue from operations rose 3.4 percent to $34.0m. EBIT from continuing operations for the period increased 8.64 percent to $7.35m.
The results excluded those of its Farmside subsidiary in which it sold a 70 percent stake to Vodafone.
CEO Andrew Miller said the results showed that TeamTalk’s transformation was gaining momentum and that it had delivered on the undertakings given to shareholders during the year to increase revenue, reduce costs and capital expenditure, refocus the company and realise the company’s inherent potential.
“Profit after tax for financial year 2017 is at the top end of guidance, debt has been substantially reduced and we have increased sales across our continuing operations,” he said.
“This result provides the platform for future performance. In the coming year, we will target capital expenditure of between $6.0m - $6.5m, funded from operating cashflow, in digital mobile radio and strengthening the resilience of our infrastructure across the business, and further reduce debt to enhance and secure future profitability.”
This year’s result follows what the company said had been a difficult year in FY16 when it reported an after tax loss of $1.3m, 0.6 percent decline in revenue to $57.3m and a four percent reduction in EBITDA to $12.6m.
It also follows the company successfully fending off a takeover bid from Spark, which in February made an offer valuing TeamTalk at $22.7m. That plan was effectively scuttled when TeamTalk, in March, agreed to sell a 70 percent stake in its Farmside subsidiary to Vodafone for $10.0m. Completion of the sale was announced on 1 June.