Ann: HALFYR: TTK: TeamTalk Interim Result Announc

• Release Date: 23/02/12 14:20
• Summary: HALFYR: TTK: TeamTalk Interim Result Announcement - Profit up 15.5%
• Price Sensitive: No
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TTK
23/02/2012 12:20
HALFYR

REL: 1220 HRS TeamTalk Limited

HALFYR: TTK: TeamTalk Interim Result Announcement - Profit up 15.5%

Name of Listed Issuer: TeamTalk Limited

RESULTS FOR ANNOUNCEMENT TO THE MARKET

Reporting period: 6 months to 31 December 2011
Previous corresponding period: 6 months to 31 December 2010

The financial statements have been prepared in accordance with generally
accepted accounting practice in New Zealand.  They comply with NZ IFRS, which
constitutes NZ GAAP, and give a true and fair view of the Group's results and
are based on unaudited financial statements.

CONSOLIDATED OPERATING STATEMENT
Current Half Year NZ$'000; Up/Down %; Previous Corresponding Half Year
NZ$'000

OPERATING REVENUE:
Total Operating Revenue:

16,816; Up 7.6%; 15,635

OPERATING SURPLUS BEFORE UNUSUAL ITEMS AND TAX:

3,756; Up 16.9%; 3,214

Unusual items for separate disclosure:
0; 0%; 0

OPERATING SURPLUS BEFORE TAX:
3,756, Up 16.9%; 3,214

Less tax on operating profit:
1,065; Up 9.1%; 976

NET SURPLUS AFTER TAX AND EXTRAORDINARY ITEMS:
2,691; Up 20.2%; 2,238

NET SURPLUS (DEFICIT) ATTRIBUTABLE TO MINORITY INTERESTS:
(3); Down 96.8%, (94)

NET SURPLUS ATTRIBUTABLE TO MEMBERS OF THE LISTED ISSUER:
2,694, Up 15.5%; 2,332

Basic earnings per share:
11.6 cps; Up 9.4%; 10.6 cps

Diluted earnings per share:
11.6 cps; Up 9.4%; 10.6 cps

Net Tangible Asset per share
174.3 cps; Down 6.8%; 187.0 cps

Final Dividend:

10.0 cps, 0%, 10.0 cps

Record Date: 20 April 2012.
Payable Date: 27 April 2012.

Imputation tax credit on latest dividend: 3.8889 cps

A supplementary dividend of 1.7647 cps will be payable on 27 April 2012 to
shareholders who are not resident in New Zealand.

The company's Dividend Reinvestment Plan (DRP) will be in operation in
respect of the interim dividend.  The last date for the receipt by the Share
Registrar of an election notice for participation in the DRP is 5pm on 20
April 2012.

Director's Review

Your directors are pleased to present the half year report for TeamTalk
Limited for the six months ended 31 December 2011.  Group income at $16.9m
was up $1.2m or 7.8% on the same period last year.  EBITDA of $6.69m was up
11.8% on the same period last year - both figures representing record results
for a six month period.

Net profit after tax of $2.69m was also at a record level for a half year
result and was up 15.5% on last year.

In our broadband businesses the two quarters generated surprisingly different
results although the variance was largely due to external factors.  The first
quarter carried on where the previous financial year ended off with very
strong growth continuing, in part due to a release of the previous pent up
demand caused by the uncertainty around the Government's Ultrafast Broadband
initiatives.

In the second quarter however we, along with the rest of the industry,
experienced a slowdown in demand for our business broadband services.  It was
almost as if the entire ICT sector had downed tools to support the ABs
winning the World Cup. The general election also contributed to the slowdown
with many Government customers also deferring their projects.

The combined result was another strong result from the Broadband division
with revenue up 11.6% and EBITDA increasing $1.2m to $4.05m.

Our Mobile Radio business exhibited a similar profile over the period with a
strong first quarter, in part buoyed by some work around the Rugby World
Cup's communication requirements, but with a slower second quarter as
customers continue to rationalize their fleets, the net result was a modest
decline over the same period last year.

The following table summarises our result:

$000 Mobile Radio Broadband Group % change on last year
Total Income 9,193 7,724 16,917 +7.8%
Total Costs excl. depreciation (6,560) (3,670) (10,230) +5.3%
EBITDA 2,633 4,054 6,687 +11.8%
Depreciation (1,199) (1,033) (2,232) +4.4%
EBIT 1,434 3,021 4,455 +15.9%
Net External Interest (633) -2.5%
Pre-tax Operating Profit   3,822 +19.7%
Unrealised gain / (loss) on swap revaluation  (66) -430%
Pre-tax Profit  3,756 +16.9%
Tax   (1,065) +9.1%
Minority interests   3 -96.8%

Profit for the period attributable to the Company's equity holders
2,694
+15.5%

New Banking Facility
In line with the notice sent out at the end of last year a special meeting of
shareholders was held in late January to approve a resolution enabling the
Company to extend its banking facilities with Westpac. We were delighted
with the response from shareholders who overwhelmingly supported the
proposal.  We are now operating under the improved banking facility which
provides the Group with more financial flexibility as we look to continue
growing the Group.

Director Appointed
In another move to position the group for more growth we're pleased to
announce that Roger Sowry has joined the TeamTalk Board as an Independent
director.  Roger has been associated with TeamTalk since 2009 when he joined
the CityLink Board and he brings a wealth of experience from his dual careers
including 15 years in parliament and more recently in the commercial arena.
In accordance with the Company's constitution Roger will retire by rotation
and seek re-election at this year's Annual Meeting but in the meantime we
look forward to him applying his considerable acumen across the wider group.

Dividend
The directors have declared a fully imputed dividend of 10 cents per share
payable on Friday 27th April 2012.  The record date for entitlement to the
interim dividend is 5pm on Friday 20th April 2012.  A supplementary dividend
of 1.7647 cents per share will be payable to shareholders who are not
resident in New Zealand.

The Company's Dividend Reinvestment Plan (DRP) scheme, which enables eligible
shareholders to conveniently increase their equity stake in TeamTalk at a 3%
discount to the market price, will continue to be in operation for this
dividend.

The Future
Looking forward it appears that we will continue to have an uncertain global
economy that could turn without warning.  It also appears that we have a
Government that will continue to meddle in our industry.  In spite of these
factors TeamTalk remains focused on our core strategy of continuing to grow
our existing niche telecommunications businesses through a combination of
innovation and outstanding service.  As discussed previously we continue to
search for potential acquisitions although we should note nothing is on the
immediate horizon.

Overall we are anticipating a less volatile but possibly slightly quieter
second half of the financial year so your directors can reaffirm their
previous guidance for the year - specifically we expect to grow EBITDA by
$0.5 - $1M, to reduce our net debt and to at least maintain our dividend.

Joe Pope - Chairman & David Ware - Managing Director
On behalf of the TeamTalk Board
End CA:00219930 For:TTK    Type:HALFYR     Time:2012-02-23 12:20:31