TTK
27/08/2014 16:04
FLLYR
REL: 1604 HRS TeamTalk Limited
FLLYR: TTK: TeamTalk FY14 Result Media Release
Media release
For immediate release
27th August 2014
TeamTalk 2014 Annual Result
- Revenue $61.0 million up 32%
- EBITDA $15.7 million up 18%
- NSAT $(8.3) million down 332%
A solid result from TeamTalk's mobile radio and business broadband operations
were offset by a disappointing result from the rural ISP Farmside.
"Quite simply Farmside has been slower to fire than we expected", said
Managing Director David Ware. As a result the Board has taken the prudent
decision to write down the carrying value of the goodwill associated with the
business unit. Although this is a non-cash accounting adjustment it is
nonetheless disappointing".
TeamTalk has taken a number of steps to improve Farmside's performance
including personnel and structural changes. In addition the group has
started to deploy its own telecommunications infrastructure in rural areas
where good quality broadband services are not available.
"While Farmside is not yet out of the woods I'm quietly confident - we've
achieved over 30% market share of the Government funded RBI wireless service
and our customer numbers on this service are sure to rise as the service
continues to be rolled out in more areas," said Mr Ware.
"Having won Government contracts to provide broadband services to Haast and
the Chatham Islands, we are well positioned to compete for the additional
$100 million rural telecommunications funding as promised by the National
Party yesterday."
As signaled at last year's Annual Meeting TeamTalk Chair Joe Pope will not be
seeking re-election when he retires by rotation at this year's meeting. Joe
remains a director until that date however he has stood down as Chair after
to be replaced by Roger Sowry. "Joe's support for TeamTalk has been
unwavering for the past decade and we have been very fortunate to have the
benefit of his expertise for such a long time."
The incoming Chair Roger Sowry is a former Cabinet Minister and chairs Weltec
and Whitireia Polytechs, is a member of The Electricity Authority and is a
partner at Saunders Unsworth. He has been a member of the TeamTalk board
since 2012 and prior to that was a CityLink director for three years.
TeamTalk's dividend policy remains unchanged at 15c per share.
-----------ENDS----------
For more information please contact
David Ware, TeamTalk
0800 101-900
End CA:00254491 For:TTK Type:FLLYR Time:2014-08-27 16:04:41
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