Broadband profits for TeamTalk

TeamTalk profit has increased to a record 15.9% after the company reported improved returns from broadband operations.

The CityLink fibre-optic broadband owner says lower depreciation and interest expense means they expect another record breaking result in the current year.

Posting a net profit for the year ended June 30 of $5.4m, TeamTalk surpassed the previous year’s earnings of $4.7m as revenue rose 2%, totalling $32.4m.

The broadband operations earnings increased by 18.8% to $18.1m before interest, tax, depreciation and amortisation.

The Kiwi telecommunications company also attributed services provided to the Rugby World Cup 2011 as making a ‘good contribution’ to profits, with further highlights including CityLink’s successful free Wi-Fi launch in Wellington.

TeamTalk’s traditional mobile radio business defied negative expectations to post a small revenue increase as company shares closed at $2.60, compared with a year low of $2.03 in October 2011.