TeamTalk profit up by 15.9 per cent

TeamTalk, the owner of the CityLink fibre-optic broadband business, lifted full-year profit by 15.9 per cent to a record on improved returns from broadband operations.

TeamTalk's net profit for the year ended June 30 rose to $5.4 million from $4.7 million the previous year as revenue rose 2 per cent to $32.4 million.

The company said it expected to achieve another record result in the current year, thanks to lower depreciation and interest expense.

The broadband operations, which include the business customer-focused CityLink and Araneo, increased earnings before interest, tax, depreciation and amortisation (ebitda) by 18.8 per cent to $8.1 million.

TeamTalk cited highlights in the year including CityLink's successful launch of free wi-fi in the Wellington central business district and Araneo's successful tender in the Government's remote schools broadband initiative.

Its traditional mobile radio business achieved a small increase in revenue, against expectations it would decline, but ebitda fell 11.1 per cent to $5.1 million.

The company said services provided to the Rugby World Cup made "a good contribution" but costs rose, particularly from third parties who provide services to the network.

TeamTalk will pay a fully imputed final dividend of 10c a share, taking the year's payout to 20c, the same as the previous year.

TeamTalk shares closed up up 5c at $2.60, compared with a year low last October of $2.03.

- BusinessDesk

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