Cabletalk posts $11.74m loss after goodwill writeoff

Telco servicing company Cabletalk today posted an $11.74 million net loss for the year ended March 31 but said it had achieved a $1.04 million turnaround in operating performance in the second half of the financial year.

Last year the company posted a $1.6 million net loss.

But in a statement to the stock exchange today the company said it had recorded a net surplus before amortisation of $646,000 for the six months to March 31. This result improved on the $400,000 to $500,000 estimate communicated to shareholders in March and reversed the $395,000 loss in the six months to September 2002.

Cabletalk managing director, Peter Wilson said today: "The improvement in financial performance evidenced in this result reflects the hard work that has been put in to make Cabletalk a more focussed and efficient business.

"By concentrating on achieving high quality sustainable revenues, rather than looking to short-term, low-margin projects, we have been able to hold down costs and improve overall profitability."

The company said other second half highlights included a 6 percent reduction in operating expenses, and an increase to $1.28 million in earnings before interest, taxation, depreciation and amortisation from breakeven in the first half of the year.

The company said its directors considered Cabletalk's investment in Cabletalk Astute Network Services Limited (CANS) was impaired and made a decision to write off the remaining $11.379m of goodwill associated with its acquisition.

"The removal of this intangible asset will enable better reporting of the true operating performance of the group as we move forward," chairman Ross Keenan said.

- NZPA