TeamTalk returned to full-year profit and affirmed its guidance for 2018 as the network provider trims its debt and prepares for a resumption of dividends.
Profit was $5.1 million in the 12 months ended June 30, from a loss of $1.3m a year earlier, the Wellington-based company said in astatement. Revenue from continuing operations climbed 3.4 per cent to $34m. It recognised a gain on the sale of discontinued operations of $2.97m.
TeamTalk raised its forecast for 2017 profit just two weeks ago to a range of $4.7m-to-$5.1m, more than double the forecast range it gave in March, largely reflecting the sale of 70 per cent of BayCity Communications to Vodafone New Zealand. In April, TeamTalk shareholders approved a deal where Vodafone would pay $10m for a 70 per cent stake in BayCity, which operates the Farmside rural broadband and satellite services, with an option to buy the remaining 30 per cent holding for $3m.
"Just over 12 months ago the board appointed a new chief executive to turn around the company and its financial performance," said chairman Roger Sowry. "The annual result delivers on the assurances we gave shareholders that they could expect better results over the next six-to-18 months and beyond."
The company affirmed its 2018 guidance for profit of between $4.1m and $5.6m and said it expects to reduce net debt by 8-to-12 per cent. In the 2017 year it reduced net debt to about $22m from $33m, cutting its net finance costs by $600,000 to $1.6m.
"The company is on track for a resumption of dividends along with reinstatement of the dividend reinvestment option at the end of financial year 2018," Sowry said.
TeamTalk shares were unchanged at 78 cents and have surged 81 per cent in the past 12 months.
